5 minute scalping strategy with MacD, RSI in tradingview

5 minute scalping strategy with MacD and RSI indicators

To trade on all types of forex market situations, use the 5 minute  Classic Forex scalping technique. This strategy can be used for swing trade for day traders with low-risk management and a low-volume filter added to reduce losing money in day trading.

As a Scalp trader, are you hoping for small profits?

This is the ideal trading technique for you: a Scalping strategy built without the need of a stochastic oscillator or Bollinger band, and without the necessity to draw support and resistance levels. These indicators are mostly used to locate scalping entry points, although they can occasionally lead to erroneous buy and sell trading signals.

5 minute scalping strategy with MacD, RSI

Trading chart setup indicators for 5-minute scalping:

  1. Moving Averages Period: 21, Close ( 21 periods used for reducing False signals and panic in traders, If you are Good with MA You can use the 13 Period MA line ).
  2. MacD (12, 26, 9) with default settings.
  3. Relative strength index (RSI 14 period close with level 50).

Timeframe: 1min or 5min ( Recommended ).
Currency pairs All Major Currency pairs.
Trading sessions (London and New York) do not trade before economic news( Avoid major news hours ).

Set up the chart and trade EURUSD, GBPUSD (high Volume) pairs in any trading session because this approach is more reliable.

Buy Signal / long Trade conditions:

  1. Price move Above or Cross up 21 MA line ( Repracent Buy trend ).
  2. MACD lines Cross > 0 zero line and Green volume bar start.
  3. RSI is above > 50 levels.

Sell Signal / Short Trade conditions:

  1. Price move Below or Cross down 21 MA line ( Repracent Buy trend ).
  2. MACD lines Cross < 0 zero line and Red volume bar start.
  3. RSI is Below < 50 levels.

Stoploss: Initial Stop loss 15 pips. Profit target 10 - 15 pips. After 5 pips in gain move stop loss at breakeven.

5min scalping strategy in tradingview

How to Reduce Losses and Avoid False Signals?

Every strategy has a few flaws and failing spots, and traders must be aware of these flaws in order to avoid false signals, reduce losses, and increase win rates and profits. in use of a 5-minute forex scalping strategy, we recommend you avoid the following measures if you're trading in a sideways trend or with little volume.

  1. MacD Lines Below <0, and low Volume.
  2. Avoid MacD Volume max High and max low Reversals.
  3. Avoid Price moves in the MA line.

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