Arrow Scalping Strategy for 5 Minutes
Scalping is defined as short-term forex tradingWhen the trader opens a large number of short-term transactions. In modern conditions of trading with fixed contracts the situation has changed somewhat, but the basic principles remain the same.
Short-term strategies for turbo contracts from 1 minute To 5 minutes The systems are different from the systems for longer-term trading within the framework of the 15 minutes up to 60 minutes and more. However, the 5-minute interval is the most popular among practicing traders, especially beginners.
Today we are going to look at the 5-minute arrow strategy, recommended for beginners because of its simplicity and efficiency. It will be suitable for broker INTRADE.BAR or any other trading platformswhich maintains a 5-minute expiry date fixed contracts.
Information on the strategy
The basis of the trading system are two indicators for scalping in the Forex market. But they can also be successfully used for trading with fixed contracts.
- Moving Average Colored EMA/SMA - custom muving modification, which is one of the top 10 most popular among users TradingView. Under normal conditions, the user can see only exponential Moving Average. However, when the level of volatility changes rapidly, the position of the line is determined taking into account the position of SMA indicator. Therefore, this indicator can be called a hybrid of simple and exponential moving average. It differs in appearance by the presence of color indication depending on the active phase of the market.
- TUX EMA Scalper+SuperTrend - A hybrid combination of a scalping indicator based on exponential moving average and a SuperTrend analysis tool. The developer originally created it for trading Bitcoin cryptocurrency. However, as you know, technical analysis strategies are universal and are not tied to assets. Therefore, this solution soon became popular among ordinary currency traders as well. The TUX EMA Scalper consists of 4 lines and 2 arrow pointers. But in our case we will hide most of the unnecessary elements, leaving only the arrows.
The principle of the strategy is classic - determining the overbought and oversold points, the change of the trading balance. The use of oscillator hybrids with trend analyzers allows to solve this problem with a high degree of efficiency.
Preparing for trading
To trade, first open a web-terminal intrade.bar (go online) or another platform on which you trade. Then you need to choose the most profitable trading asset and open it on the 1-minute candlestick chart. The same currency pair should be opened in the next tab of the browser live schedule TradingView.
In the technical analysis window using the built-in search add two tools - "TUX EMA Scalper+SuperTrend" and "Moving Average Colored EMA/SMA". Go to the "Style" tab in the TUX EMA Scalper settings. Then hide all the items by unchecking them except for the "UP Entry Arrow" and "Down Entry Arrow". More details are shown in the illustration above.
Technical details of the system
Expiration time. Scalping is a short-term trade, so we use the standard 5-minute trades.
Money Management. It is not recommended to exceed the permissible risk, for which you should limit the transaction amount in the amount of 4-5% relative to the current trading deposit.
Trading asset and time. Forex currency pairs or cryptocurrencies, as well as any other assets with high yield, which will be in the catalog of the web terminal and Live-chart TradingView.
Signals for trading on the system
Evaluate signals arrow strategies are always easy, even for novice traders. The pointer shows where the market will move in the next minutes. The Exponential Moving Average plays an insignificant role in this case. But it is the EMA that allows to detect a false signal in some cases. That is why its role should not be underestimated. It allows increasing the total percentage of profitable trades by approximately 10%. And statistically it is a very large indicator.
- The "Up" contract. A green arrow of the TUX EMA Scalper is formed on the chart, at the same time the market rises relative to the position of the Moving Average curve.
- Contract "DOWN". The appearance of a downward pointing red arrow, combined with a breakdown of the Moving Average.
The signals are clearly shown in the picture above. It is unlikely that anyone will have problems with trading with this strategy. It is one of the simplest systems that will suit any beginner. Other arrow strategies featured on our website Revieweek™The simplicity is also notable for its ease. However, as far as trading is concerned, simplicity does not mean ineffectiveness. On the contrary, the most effective indicators usually have a very simple, minimalistic appearance.