5 Minute Scalping Strategy
5 Minute Scalping Strategy
If you swing trade or position trade this 5 minute scalping strategy is pretty good to occupy your time at the computer.
Very cool, I will try it!
Thanks for sharing.
Wow. after reviewing this trading strategy I find it to be a lot like mine, I use the 8, 20 and 50 SMA's.
I call it my 20 for 20 trading system and routinely grab 20 pips daily in the morning.
Thanks for sharing, this really gives me confidence and solidifies my personal strategy.
I can't believe this but It is exactly how I have been trading on the ADP/NZD currency.using the Stocastic 30 and 70 for entry exit.. Now I will uses the EMA method to provided a more diagostic method to produce these types of pips. THANK YOU.
Congrats tradernow it is an excellent strategy! I use a similar one, combining only 20 EMA and 50 EMA only, and also I add MACD for extra confirmation to identify divergence so its my favorite strategy also for swing and long term. Thank you!
Thanks for sharing
Thanks for sharing! Often times simple is the best - and this is a simple plan. I think a lot of traders will find success with this.
I tried this also. The strategy work well with strong up or down trend. The best time to trade are after London and New York open.
This is great. Thanks for sharing!
I use this 10/21 on 5 min. It works well
HI Tradenow, I been practicing with your strategy and it seems to work well, but i like more clarification on entry. you mentioned when the candle is in between the 10 and 21 ema thats the time to enter. do you also enter if it just touches goes over the ten ema or if it pierces thru the 21 ema. i have some different results depending on where i place the entry thanks for your system and any feed back you could provide.
I enter after it touches the 10, 21 or 50 only when the market starts to turn in the trend direction.
The most important thing is to use it in a trending market.
So as long the market is starting its turn in the trend direction., you enter on if the candle is on any of the three ema lines. I
i want to thank you, as i am using you basic principles and i am doing really good for the last 3 days. If it continues i think i have my trading strategy i will use going into gold 3. What more will i get from the document you are selling. thanks again and bless you!
Thanks for sharing
Thank you for sharing, looks interesting
Thanks for sharing! I like his statement, "Although, I do use this system on a daily basis, it isn't my main trading system, and it shouldn't be yours either."
Typically, I use the Tokyo session to begin my trading plan, because the market is in consolidation more often then not, so the 50 sma line is adjusting from the previous sessions trend direction into the side direction, thus the signal to "exit" the trades anyway if one hasn't already.
The first 4 days this week the EUR/USD was bullish, so this system worked out beautifully. See chart below for 333 pip results.
Except Wednesday was bearish, but then only my break-out trade worked for 30 pips that day. And -22 on the bullish attempt.
Friday the markets tend to be a frenzy of fake-out moves, and was up and mostly down. See 2nd chart below for 135 pip results.
Some of these entries are based on my 28,29,30 reversal setup, which I use above and below the Tokyo session consolidation price average price point. (Friday--Tokyo price point ave. 1.24958 )
The first trade is usually the break-out of approx. 22 pips on most days.
This is a few systems I use each day as well.
How to trade the EUR/USD forex market on the 5 minute timeframe
How to trade the EUR/USD forex market on the 5 minute timeframe
Learn to trade with Anthony Beardsell
Over the next few weeks I am going to illustrate a specific method which will show you how to trade the EUR/USD forex market on the 5 minute timeframe.
My aim for this trading series is to enable you to gain an understanding of how to execute a rules based trading plan with the objective of growing a small trading account over a short period of time.
I am going to lay out below the type of trades that we will be taking and reviewing each day. The type of trades that we will be discussing occur on a regular basis on the EUR/USD and once you get to know the rules, the entry and exit strategies, you will have a set of criteria that you can use in identifying these same trading opportunities for yourself.
It will be useful for you to have some basic knowledge of trading in order to get the best from the articles. However we will be gradually building your knowledge and skills in terms of this particular approach to trading and the EUR/USD forex pair in particular.
The framework for these trades is common to most of the major forex pairs and in my experience the trades appear most frequently and the approach works best with the EUR/USD pair.
My recommendation to you would be initially to get to know these trades inside and out by following this series. Get to know what type of things to look out for that give the trades a higher and lower probability of success. Once you get a feel for the type of trades and opportunities that we are discussing you may then like to go to your charts each day before referring to our articles and start picking out the trades for yourself. You can then validate what you identify from your charts by reading our review of the same price action.
No specific advice or recommendation to trade is intended through these articles. As always, you trade at your own risk.
This is one of several types of trading strategies that I employ myself and that I teach traders on our Forex Trading and Day Trading Courses. This is a day trading strategy and is based on reading price action on the 5 minute timeframe charts.
On our courses we teach you how to trade from the ground upwards. We enable you to build your own trading plan based on the type of trading that suits your personality, risk tolerance and the time that you have available to trade.
Lets get into some detail now on the types of trades that we will be taking.
The type of EUR/USD forex trades that we will be reviewing and our rules
In this series we will be focussing on two particular type of trades.
- Breakout trades from tight consolidation ranges.
- Pullback reversal trades
We will be using technical analysis of the price action on the 5 minute timeframe chart in order to find our trade entries.
We will largely be ignoring any fundamental analysis although we will be regularly reviewing the daily timeframe chart to enable us to get an overview of longer term trends, support and resistance levels and momentum.
We will be taking long and short trades.
Technical Trading Indicators We will only be using the 8, 20 and 90 EMAs (Exponential Moving Averages).
Risk and Reward on our Trades
One of the keys to growing small trading accounts and trading successfully is managing risk.
We will be taking trades with a 2:1 reward to risk ratio. This type of ratio allows us to have a very conservative win rate on our trades and still make money.
A win percentage of 70% is certainly achievable for these type of trades with experience and skill buildup over time. However, it is always sensible to be cautious with expectations in trading and therefore with this type of risk to reward ratio it allows us room to take as many losing trades as winning trades and still grow our account rapidly over a fairly short period of time.
Breakout Trades from tight consolidation ranges
The EUR/USD forex market tends to have periods of quite low volatility followed by a big surge in momentum. We will be aiming to identify breakout trades from ranges created by these periods of low volatility and trades that take advantage of the resulting surges of momentum.
Frequently, as we will see, the overnight trading volume is low on this forex pair. The market assumes a tight trading range during the early hours of the morning. A breakout will eventually occur from this trading range and with the right type of price action we will often see the market zoom off in one direction or the other. These are the type of breakout opportunities we will be trading.
Pullback Reversal Trades
After the market has made an initial surge upwards or downwards it often takes a pause before continuing in the direction of the initial surge. We will be anticipating this continuation by taking clues from the price action in the candlesticks, the degree of pullback that occurs and the way that the price candlesticks interact with the EMAs.
How to trade the EUR/USD using the 5 minute timeframe chart
Here are two charts from last week that illustrate the types of trades that we will be looking for:
This is the EUR/USD 5 minute chart from the 14th November.
You can see the tight trading range that was established overnight, the breakout from the range, the subsequent momentum move higher, the pullbacks and the reversals.
Below is the EUR/USD 5 minute timeframe chart from the 15th of November showing the same type of price action:
I look forward to sharing this trading strategy with you, giving you valuable incites into how to trade the EUR/USD and how to grow a small trading account.
If you have any questions or comments then I would be pleased to hear from you. Feel free to leave me your thoughts in the comment box below the articles.
Forex Scalping for Beginners
Trading is a very delicate job. In the Forex market, there are so many tools you can use in order to make money. There are a lot of specific styles of trading, whose characteristics can be very diverse. Those trading dimensions are:
- Price Action
- Indicator based
- Price Action/Indicator combination
- Range bars/Renko/Any offline chart
Now you know a bit more about the different trading methods, you should have in mind that the method that you choose will define which strategy you will be using while trading.
Before you start to trade, try to think about the time perspective. The time horizon will play a big factor in which time-frames are to be chosen. This can range from as low as a 1 minute chart, where the candle is formed every minute, to monthly charts where the candle forms once every month. Remember that each candle lasts for the specified period of time unless you are trading with the range bars which are completely immune to time factor.
In trading terms, anything below an hourly time-frame can be considered short-term. Scalping and scalp swings are good examples of trading short term. Hourly and 4 hour time frames are optimal for intra day and intra week swing trading so we can say that anything below a daily time-frame can be considered medium-term. Daily and above time-frames can be considered long-term, especially weekly and monthly charts. Trades simply don't happen often, usually 4-5 times per year. Also, have in mind that a 1 minute chart trading strategy can be a bit overwhelming for you if you don't focus on your charts and you are distracted.
We all want to make fast money with Forex. There are heaps of scalping strategies in Forex, but the majority of them do not work or they might be just very difficult to follow.
However, scalping is the fastest way to make money in trading. By definition, scalping is a fast paced trading style that specialises in taking fast profits on relatively small price changes, usually soon after a trade has been entered and has become profitable. It is done on lower time-frames - usually M15, M5 and M1 and it requires a trader to have a strict exit strategy. Have in mind that one large loss could eliminate the many small gains that the trader has worked to make when Forex scalping. Having the right tools, such a low spread broker, and the proper focus to place many trades, is required for this strategy to be successful.
Forex scalping using MT4 indicators can be very difficult, due to signal delays, lagging, etc. In this case, sometimes it is much more profitable to use a price action scalping system that uses no indicators. The price will tell you what to do. The price is your signal and your best indicator. With the following scalping system you should be able to make good profits if you follow all the rules and risk management recommendations.
This scalping strategy uses no complicated rules and should be very easy to use for any trader even if you've never traded Forex before. The system does not require a trader to follow major Forex rules like: do not trade against a trend, ignore signals against a trend, because the system itself confirms trend following! So, let's learn how to scalp Forex.
Scalping is not easy for beginners, please try the system on your demo account for at least one month before going live.
This is a trend following strategy and for new traders it could be the best Forex scalping strategy. The benefit is also that you can use this strategy for 1 minute scalping, 5 minute scalping and 15 minute chart trading.
Forex Scalping Strategy For Beginners
Currency Pairs: EUR/USD, GBP/USD, USD/CHF, AUD/USD, NZD/USD and USD/JPY
Platform: MT4 MTrading
Time Frame: 1m to 15m
Bollinger bands (BB) (14 period) (green)
Stochastic (STO) (14,3,3) with levels 90 and 10
First the price needs to break below the lower Bollinger Band. We then wait for the candle to close inside BB again. The stochastic should be below 10 and crossing up 10 from below.
First, the price needs to break above the upper Bollinger Band. We then wait for the candle to close inside BB again. Stochastic should be above 90 and crossing down 90 from above.
At Opposite Bollinger Band or after 10-30 pips depending on time frame.
Stop loss is placed 3-5 pips below the last low for long (buy) trades or 3-5 pips above the last high for short(sell) trades.
Before you open a LIVE account, please practise first on a DEMO account. We hope you'll enjoy this scalping method!