The following is a 5-minute scalping forex trading strategy for the EURUSD, GBPUSD, USDJPY and EURJPY currency pairs. Scalping is a special type of trading strategy that helps the trader to make significant profits on minor price changes.
You should then open an ADX indicator in a different window set at 13.
At least 3 criteria must be satisfied for this trade.
- The first criterion is that the 50 SMA angle must be more than 20 degrees. The measurement does not need to be absolutely accurate, a subjective estimate is sufficient.
- The second criterion is that the price should pull back through the 10EMA to the 21EMA. The area between the 10EMA and the 21EMA is the fire or war zone.
- The third and final criterion for this trade is that the price must stay on the proper side of the small resistance or support line. You should draw a trend line from the last high or low prior to the cross of the 50SMA to the next high or low. This will form a small resistance or support line.
- The price and candles must all stay on the correct side of the small trend line. Otherwise, the possible trades will be canceled.
- Pullbacks of candles towards war zone must be smooth and flat.
- After identifying the first candle to enter the war zone, wait for the second candle to pullback from 21MA towards 10MA and then enter the trade on the pullback.