5 minute strategy for Forex trading
The five-minute time frame has always been considered one of the most preferable for trading using the scalping strategy on Forex; trading on it is no longer as fast as on M1, but you can still use large leverage.
The 5-minute strategy involves using the three-screen method in trading.
Which allows you to practically do without installing additional indicators. And all technical analysis of a currency pair chart comes down to a visual study of the current situation.
The 5-minute trading strategy really works and allows you to get about 10% profit from one trade, but certain conditions must exist to apply it in the Forex market.
Features of the 5-minute trading strategy.
Deposit size – in my opinion, it's completely irrelevant. I traded well both on a cent account with a $5 deposit and on an ECN account with a deposit of over $2,000.
Profitability – you only earn a few pips per trade, but they amount to about 7-10 percent of the deposit amount.
Leverage – I used 1:500, and the ratio between the deposit and the trade size was usually 1:200. This means that with $1,000, a trade of 2 lots is opened. Yes, this is quite risky, but on average, I had no more than one losing trade for every five profitable ones.
Trading time is 4-6 AM Moscow time.
The EUR/USD
currency pair These are essentially all the main factors used in the "5-Minute Forex Strategy." Next, we'll look at the process of opening trades and the most successful entry points.
Trading on a 5-minute time frame.
1. First, we try to determine the price movement since the start of the current day. This can be done on the M15 chart with the appropriate time scale.
The main requirement is that the forex trend must have a clearly defined direction, no matter which direction. If the price is behaving unpredictably, we postpone the trade until the next day.
2. Now switch to the M1 chart. The pullback should end there and the price should begin to rise again. A similar situation is required on the M5 chart. Only then will you achieve maximum profit.
3. Furthermore, the entry point should be located in a position that shows the price will definitely continue to rise. This can be confirmed by the presence of a similar trend correction , but one that occurred earlier.
4. Closing a trade – I'm not particularly greedy and close a position as soon as the profit reaches a few pips. With a $1,000 deposit and a 2-lot volume, these few pips can amount to $80-$120.
The 5-minute Forex trading strategy allows you to make a profit even without a deep knowledge of technical analysis, and all my losing trades occurred mainly when I deviated from the rules described in this example.
