Five Minutes Scalping Strategy:
Getting Started
This forex scalping technique works best on 5-minute charts, but it can also be applied successfully to 1- to 15-minute charts. Make sure to experiment with various time frames for every pair to determine which one suits them the best. There are just three indicators in the strategy, which is fairly straightforward. Among these indicators are:
1. A Simple moving average of 50 periods (closed)
2. A Simple moving average of 15 periods (closed)
3. A Simple moving average of ten periods (closed)
To see how your chart should appear, view the image above. You have total control over each moving average's color scheme.
How to Trade
1. Determine whether the 50 Moving Average is above or below the current price by examining your chart.
2. You are looking to sell if the 50 Moving Average is above the price. You are searching for a deal if the 50 Moving Average is less than the asking price.
3. At this point, we want the price to fully cross both the 10 and 15 moving averages.
4. We take a SELL if the price moves below the 10 and 15 Moving Average. We make a BUY if the price moves above the 10 and 15 Moving Averages.
Refer to the pictures below:
We are searching for a SELL because the price in this image is below the 50 Moving Average.
We would have made the trade as soon as the price fully dropped below the 10 and 15 Moving Averages. The candle on which we would have placed the sell is indicated by the red arrow. (Observe how the candle is not even touching the 10 and 15 Moving Averages; it has completely crossed them.)
We are searching for a BUY because the price in this image is higher than the 50 Moving Average.
We would have made the trade as soon as the price fully crossed above the 10 and 15 Moving Averages. The candle on which we would have made the purchase is indicated by the green arrow. (Observe how the candle is not even touching the 10 and 15 Moving Averages; it has completely crossed them.)
Getting Started
This forex scalping technique works best on 5-minute charts, but it can also be applied successfully to 1- to 15-minute charts. Make sure to experiment with various time frames for every pair to determine which one suits them the best. There are just three indicators in the strategy, which is fairly straightforward. Among these indicators are:
1. A Simple moving average of 50 periods (closed)
2. A Simple moving average of 15 periods (closed)
3. A Simple moving average of ten periods (closed)
To see how your chart should appear, view the image above. You have total control over each moving average's color scheme.
How to Trade
1. Determine whether the 50 Moving Average is above or below the current price by examining your chart.
2. You are looking to sell if the 50 Moving Average is above the price. You are searching for a deal if the 50 Moving Average is less than the asking price.
3. At this point, we want the price to fully cross both the 10 and 15 moving averages.
4. We take a SELL if the price moves below the 10 and 15 Moving Average. We make a BUY if the price moves above the 10 and 15 Moving Averages.
Refer to the pictures below:
We are searching for a SELL because the price in this image is below the 50 Moving Average.
We would have made the trade as soon as the price fully dropped below the 10 and 15 Moving Averages. The candle on which we would have placed the sell is indicated by the red arrow. (Observe how the candle is not even touching the 10 and 15 Moving Averages; it has completely crossed them.)
We are searching for a BUY because the price in this image is higher than the 50 Moving Average.
We would have made the trade as soon as the price fully crossed above the 10 and 15 Moving Averages. The candle on which we would have made the purchase is indicated by the green arrow. (Observe how the candle is not even touching the 10 and 15 Moving Averages; it has completely crossed them.)
