These impatient souls make perfect momentum traders because they wait for the market to have enough strength to push a currency in the desired direction and piggyback on the momentum in the hope of an extension move. However, once the move shows signs of losing strength, an impatient momentum trader will also be the first to jump ship. Therefore, a true momentum strategy needs to have solid exit rules to protect profits , while still being able to ride as much of the extension move as possible.

The 5-Minute Momo strategy does just that. The five-minute momo looks for a momentum or "momo" burst on very short-term five-minute charts. First, traders lay on two technical indicators that are available with many charting software packages and platforms: the period exponential moving average EMA and moving average convergence divergence MACD. EMA is chosen over the simple moving average because it places higher weight on recent movements, which is needed for fast momentum trades.

While a moving average is used to help determine the trend, MACD histogram , which helps us gauge momentum, is used as a second indicator. This strategy waits for a reversal trade but only takes advantage of the setup when momentum supports the reversal enough to create a larger extension burst.

The position is exited in two separate segments; the first half helps us lock in gains and ensures that we never turn a winner into a loser and the second half lets us attempt to catch what could become a very large move with no risk because the stop has already been moved to breakeven. Here's how it works:. Although there were a few instances of the price attempting to move above the period EMA between p. and p. ET, a trade was not triggered at that time because the MACD histogram was below the zero line.

We waited for the MACD histogram to cross the zero line, and when it did, the trade was triggered at 1. We enter at 1. Our first target was 1. It was triggered approximately two and a half hours later. We exit half of the position and trail the remaining half by the period EMA minus 15 pips. The second half is eventually closed at 1. ET for a total profit on the trade of The MACD turned first, so we waited for the price to cross the EMA by 10 pips and when it did, we entered the trade at The math is a bit more complicated on this one.

The stop is at the EMA minus 20 pips or The first target is entry plus the amount risked, or It gets triggered five minutes later. The second half is eventually closed at ET for a total average profit on the trade of 35 pips. Although the profit was not as attractive as the first trade, the chart shows a clean and smooth move that indicates that price action conformed well to our rules. We see the price cross below the period EMA, but the MACD histogram is still positive, so we wait for it to cross below the zero line 25 minutes later.

Our trade is then triggered at 0. As a result, we enter at 0. Our stop is the EMA plus 20 pips. At the time, the EMA was at 0. Our first target is the entry price minus the amount risked or 0. The target is hit two hours later, and the stop on the second half is moved to breakeven. We then proceed to trail the second half of the position by the period EMA plus 15 pips.

The second half is then closed at 0. In the chart below, the price crosses below the period EMA and we wait for 10 minutes for the MACD histogram to move into negative territory, thereby triggering our entry order at 1. Based on the rules above, as soon as the trade is triggered, we put our stop at the EMA plus 20 pips or 1. Our first target is the entry price minus the amount risked, or 1. It gets triggered shortly thereafter. We then proceed to trail the sec­ond half of the position by the period EMA plus 15 pips.

The second half of the position is eventually closed at 1. Coincidentally enough, the trade was also closed at the exact moment when the MACD histogram flipped into positive territory. As you can see, the five-minute momo trade is an extremely powerful strategy to capture momentum-based reversal moves.

However, it does not always work, and it is important to explore an example of where it fails and to understand why this happens.

As seen above, the price crosses below the period EMA, and we wait for 20 minutes for the MACD histogram to move into negative territory, putting our entry order at 1. We place our stop at the EMA plus 20 pips or 1. Our first target is the entry price minus the amount risked or 1. The price trades down to a low of 1.

It then proceeds to reverse course, eventually hitting our stop, causing a total trade loss of 30 pips. Using a broker that offers charting platforms with the ability to automate entries, exits, stop-loss orders , and trailing stops is helpful when using strategies based on technical indicators.

When trading the five-minute momo strategy, the most important thing to be wary of is trading ranges that are too tight or too wide. Do you love scalping currencies but hate the High Risk to Minimum Rewards ratio of short term Binary Options?

Hey Guys, I'm back to try and make your trading life more simple and more profitable! I really like and have had great feedback on my last system "30 Pips Daily" but myself and I'm sure like many of you enjoy some hands on fast action stuff. Especially once you have made your 30 PD trade and put the EA on it to manage the rest, and you don't have a day job, what do we do?

I usually open my BO's broker platform and do some short term scalping. risk per trade. bucks, then I won the next 2 trades. on the third. Not too cool, right? I said to myself, there has got to be a better way, hence "The Forex 5m Scalper". Let's take a look at the same scenario again with the Fx 5m Scalper. per pip. if we lose a trade.

OK here we go. Now that's cool, right? Now don't get me wrong. I enjoy binary options and will continue to trade them at times. But when you're trading for necessities and to put food on the table or really for any other reason you can think of, the biggest reward profit ratio to risk is always better and sometimes can mean the difference beween consistent profits and what I like to refer to as see-saw profits, you know consistently up and down.

Take a look at them. Not too shabby even if I say so myself! Right below this pic will be a video explaining it all. Here Is The Video Explanation. OK guys, I hope you're getting a little excited. I know I am just telling you about it. and that is if you didn't lose any trades. with forex.

And what are the chances of 14 B. trades without a loss? Get the picture? This one is blown up a bit so you can see the trades more clearly. British Pound - Kiwi Dollar, New York Session. Not too bad for a fun few hours spent, eh? At this time, the pairs involving the British Pound are making nice scalping moves, probably because of the Brexit problem.

British Pound - Canadian Dollar, London and New York Sessions. OK guys, more great scalping trade generations. On the left, 3 cool trades during London open in less than 2 hours. We checked the 2 confirmation windows on the first trade and thought it was a good one to let it ride until the reverse for 53 pips. If you were not inclined to do that, you could have took 2 separate 20 pip trades. After the first scalp we took 2 more 20 pip trades. Total of 93 pips profit in this session.

USD per pip. On the right we have 6 trades generated in less than 3 hours of the New York open. There were 4 - 20 pip profit trades, 1 - 12 pip profit that happens once in awhile and a 40 pip profit for a total of pips profit.

Join Our Telegram Group Chat - CLICK HERE. This is a Free forex scalping strategy that is primarily used for the 5-minute charts but can be used effectively on the 1 min — 15 min charts.

Be sure to try out different time frames for each pair to see which one works the best for that individual pair. The strategy itself is quite simple and only consists of 3 indicators. Refer to the picture above to see what your chart should look like. The colors of each moving average are completely up to you. In this picture, we see that price is below the 50 Moving Average so we are looking for a SELL. The red arrow indicates the candle we would have took the sell on.

In this picture, we see that price is above the 50 Moving Average so we are looking for a BUY. The green arrow indicates the candle we would have taken the buy on. Read More : Forex 4-Hour Stochastic EMA Trend Trading Strategy. Join Our Forum : Visit. Does this strategy work only with heikin ashi candles, as on the pictures, or with regular candles as well? Save my name, email, and website in this browser for the next time I comment.

Attachment The maximum upload file size: 5 MB. You can upload: image , audio , video , document , spreadsheet , interactive , text , archive , other. Links to YouTube, Facebook, Twitter and other services inserted in the comment text will be automatically embedded. Drop file here. Notify me of follow-up comments by email. Notify me of new posts by email. Trading Leveraged Products like Forex and Derivatives might not be suitable for all investors as they carry a high degree of risk to your capital.

Please make sure that you fully understand the risks involved, taking into consideration your investment objectives and level of experience, before trading, and if necessary, seek independent advice. Please read the complete Risk Disclosure. Privacy and Policy Terms and Conditions Advertising Inquiries. Best MT4 Broker with lowest cost.

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Ghost32 [email protected]. Houla on December 7, What is good Take Profit and Stop Loss when using 5 Minute Forex Scalping Strategy? Mohammad on January 1, Robalus on March 21, Leave a Reply Cancel reply Save my name, email, and website in this browser for the next time I comment. Drop file here Notify me of follow-up comments by email. Facebook-f Twitter Youtube Telegram Discord. Our Sister Sites. FXCracked Just4Forex TradeWithSam. Quick Links. Homepage Forex EA Forex Indicators Education Brokers Our Group Chat Media Kit Contact Us.

First name or full name. By continuing, you accept the privacy policy. Risk Warning Trading Leveraged Products like Forex and Derivatives might not be suitable for all investors as they carry a high degree of risk to your capital. TRADE NOW.

Total of 93 pips profit in this session. NFA and CTFC Required Disclaimers: Trading in the Foreign Exchange market is a challenging opportunity where above average returns are available for educated and experienced investors who are willing to take above average risk. See folks, forex scalping is fun and profitable and the win ratio to investment risk beats binary options short term trading by a long shot! Forex Scalping Stratgies 5 min, The Force, Advanced - Forex Strategies - Forex Resources 5 min, The Force, Expert - Forex Strategies - Forex Resources Leave a Reply Cancel reply Save my name, email, and website in this browser for the next time I comment. Mohammad on January 1,

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