Scalping… the Favorite word of those who like it fast and immediately. In just a few minutes you can earn as much as would have earned for the entire day, but just as quickly you can lose your deposit. Trading strategy 5 minute demand from the trader the maximum attention, because the decision should be made within a few seconds. In addition, you need to monitor the market all the time to be able to minimize the loss (you never know…), and the optimal maximum indicators that can give absolutely accurate signal.
A few tips for scalpers:
- do not overload chart indicators. The more different lines, the more chance to get confused and lose precious time. Just 2-3 indicators, but honed for a particular currency pair;
- work only with the most liquid assets;
- scalping trading convenient at the time of release of fundamental news, but they may destabilizing the market. Not always in volatile markets technical tools can give the right signals.
But in any case, you need to take risks. Try trading strategy 5 minutes on demo account, pick a comfortable rhythm to work.
Trading strategy 5 minutes
1. Strategy on Envelopes indicator
Let me remind you that all indicators are easily downloaded online and installed, for example on MT4. The basic conditions of the strategy:
- Envelopes (2 moving averages are built with an offset). In the settings change the MA period to 21 and a set value of deviation to 0.07%;
- attach the indicator MACD, the initial parameters leave the same.
Opening of a short position when simultaneous coincidence of the 3 options:
- the price trend has crossed the bottom line of the Envelopes cascading manner (i.e. down);
- the candle appeared on the chart which body is situated below this level;
- the MACD has just moved into negative area.
To enter the market, setting a sell order at 3-4 points below the low of the candle which is the signal. Stop-loss I recommend to put 4-5 points above the local maximum. In any case it is needed, but the level everyone should determine for themselves individually. Notice that the amount of stop-loss that determines the level of potential profit (more than the planned profit, the next stop). You can put a trailing stop.
The chart shows that the pair pound/dollar has brought an income of 140 points with stop loss 70 points. Similar trading strategies 5 minutes, have one drawback — spread, which can remove part of the profits.
Opening of long position, similarly, only with the opposite conditions. A buy order is opened only when the candle is formed, the body of which is situated above the upper line of tool Envelopes.
Tip: in the market, a situation may arise when the candle is fully consistent with the strategy, but its formation is in the middle of the histogram. To open a position in this case is risky because a trend can turn around.
Strategy on moving averages
Trading strategy 5 minutes are often based on a traders favorite tools stochastic oscillator and moving averages. About the second strategy below. Basic conditions of the indicators:
- simple moving SMA with a period of 50;
- exponential moving EMA with a period of 21;
- exponential moving EMA with a period o 10.
Enter market with short position only when the red line is SMA 50 will be tilted not less than 20°.
- Important: the strategy does not work during the news release. The most conducive to trade a pair of Euro/USD, GBP/USD.
After forming angle of 20° follow the exponential moving averages. To open a trade when there will be a rollback of the price trend in the area between the lines EMA 21 and EMA 10. It is advisable to wait until at least 2 candles of retracement are formed, but you can try to open a position when the price touches an area between the slide. A Stop Loss of 6-8 points, Take Profit 8-10 points.
With long position all the same. Waiting for the angle of 20° or more, which means the main trend, wait for price go into the area between the sliding.
To sum up: trading strategies 5 minute successful because the appearance of signals at the entrance to the market are relatively frequently. If in a medium-term strategy ou need to wait almost all day the coincidence of the signals (here the expert advisors are useful — you program them to the input of the coincidence of conditions and rest), then 5-theminute signals arise constant. But the trader must be always ready to the emotional strain and quick response.