In this article, I will talk about the five-minute scalping strategy. The 5-minute scalping strategy will be quite interesting for all traders and also for newcomers. Every trader can use this indicator and can make a lot of profit.
Best Indicator for 5-Minute Chart
In the 5-minute scalping system or strategy, the seller and buyer need to establish a minimum of 10 trades in no more than one day to benefit from any insignificant price movement. A strict exit system or strategy must be executed to minimize any potential loss.
In the 5-minute scalping system or strategy, the holding time is only five minutes. This procedure requires specific implementation and acrobatic trading.
Regulations for a Long Trade
• Focus on having the currency pairs trading below the 20-period EMA and the MACD in a pessimistic region.
• Proceed to extend above the 20-period EMA.
• For an aggressive trade, place a stop at the lowest swing on the five-minute chart. For a conservative trade, place a stop 20 pips below the 20-period EMA.
Rules for a Short Trade
Look for the currency pair to be trading above the 20-period EMA and the MACD to be positive.
Go short below the 20-period EMA.
For an aggressive trade, place the stop at the highest swing on a 5-minute chart. For a conservative trade, place the stop above the 20-period EMA.
Best MACD Settings for 5-Minute Chart
Regulations for a Small Trade
• Focus on having the currency pairs trading above the 20-period EMA and the MACD being productive.
• Proceed slightly below the 20-period EMA.
• For an aggressive trade, place a stop at the highest swing on the five-minute chart. For a conservative trade, place a stop 20 pips above the 20-period EMA.
Basic Points of the 5-Minute Scalping Strategy
Some of the basic points for the 5-minute scalping strategy are as follows:
• The 5-minute strategy is designed to help sellers and buyers participate in the retracement and spend time in the position with the appearance of prices moving in a new direction.
• The system is based on exponential moving averages and MACD trading indicators.
• With the onset of the trend, trailing stops and final loss orders are used to keep financial gains safe.
• As with any strategy or system that relies on scientific indicators, the five-minute strategy is not foolproof and the outcome may vary depending on the market environment.