Bollinger band will be our primary technical indicator for making the best 5 minute scalping strategy. Bollinger band settings for 5 minute chart will be 20,0,2. This means the period of time 20, shift 0 deviations 2. One of the most talked-about strategies based on Bollinger band is the “Kathy lien double Bollinger bands strategy.” But that strategy is not perfect for scalp trading. So I made this scalping trading strategy. If you learn this successful trading strategy and practice demo applying this strategy for 1 month, you will also be able to beat the financial markets.
Best 5 minute scalping strategy explained
There are many forex scalping strategies online. Some of them are simple strategies like a 1 min macd scalping strategy, and some are complicated. But this scalping forex strategy is straightforward and profitable.
For getting the best output from this system you need to understand price action properly. If you have a clear idea regarding price action and supply-demand then you will be able to avoid many fake signals or false signals. If you don’t know how a strong bullish candle or robust bearish candle looks like in the forex market then making consistent profits from this form of trading strategy would be very difficult for you.
First, apply the default indicator. Then for buy set up, we will search for any solid bullish signal candle rejecting the lower Bollinger band. Next, we will buy from previous candles high.
Just like this chart
For sell signal, we will search for any strong bearish candle rejecting from an upper band of Bollinger band indicator. Then we will open sell trade from the previous candle’s low.
Look at this chart image, and you will get a better idea.
For buy trade, Place your stop loss below the low of the opening trade candle. Place your stop loss above the high of the opening trade candle for a sell trade.
Your profit target should be 1:1 risk-reward. If you risk 15 pips, your target should be 15 pips. As this is a scalping strategy, you should not target more than 1:1.
Many swing traders don’t like scalping. They tend to trade on a 4-hour chart or daily chart. Although I am a big fan of scalping, if you are a newbie, start with higher timeframe swing trading or position trading. Remember, scalping is for more experienced traders, as herein scalping, you need more patience and knowledge. First, learn from any renowned institution. Then come to real trading decisions.
Benefits and drawbacks of best 5 minute scalping strategy
|You can gain 300-500 pips even in a single day if you trade the most traded major currency pairs. Because, in major pairs, price movements are very high. But in exotic pairs and local pairs market volatility is less common.
|I don’t recommend you to trade exotic pairs with this strategy.
|With strategy, you won’t need to sit tight all day long in front of a computer or mobile screen.
|You can’t make a profit in the Asian trading session with this strategy.
|This strategy is suitable only for London and US sessions.
|You don’t need any paid indicator. Instead, your default indicator will do everything for you
|You don’t need any complicated EA for placing and closing successful trades.
|You don’t need any VPN service to trade with this system.
Scalpers look for 20 pips forex scalping strategy or 10 pips per day scalping strategy often. Because making pips in scalping is hard. But if you choose the “best 5 minute scalping strategy,” you won’t need to worry about pips. Pips flooded in your mt4 or mt5 chart.
Forex 5 min scalping strategy needed a low spread broker. If you trade any high spread broker, your spread will consume your profit. As you need to enter and exit too quickly, the spread is a significant fact here.
If you want to combine another indicator with Bollinger bands, go for stochastic. And best stochastic oscillator settings for the 5-minute timeframe chart will be 6,4,4. This means %K period 6, slowing 4, and %D period 4. Although I won’t suggest any other indicator besides Bollinger bands in this strategy.
Which EMA is best for 5 min chart?
Although there are many EMAs for 5 minute chart, you can use 10 ema
Which strategy is best for scalping?
5 minute scalping strategy and 1 min macd scalping strategy are best for scalping.
Which indicator is best for 5 min chart?
Bollinger band indicator is best for 5 min chart
What is the best time frame for scalping?
5 minuets and 15 minutes are the two best timeframes for scalping