The 5-minute Forex scalping system with SMA 200 is a trend-seeking strategy that implements a key technical indicator (200 period SMA), in determining the overall market trend with 80% accuracy.
As long as the price of the forex pair remains above the 200-period SMA, it is considered a bullish trend.
Conversely, the market is tagged bearish when price stays below the 200-period SMA.
The inclusion of other technical indicators to the 200-period SMA yields a strategy that’s overly sensitive to the direction of the market.
The strategy has shown impressive trading results for both long- and short-term market signals.
MT4 Chart Setup
MetaTrader4 Indicators: Moving Average.ex4 (Parameters Modified; Period=200, Style=Blue), chanel scalper.ex4 (Default Setting), coppock.ex4 (Default Setting)
Trade Recommendations
Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day, 1-Week, 1-Month
Trading Sessions: any
Currency Pairs: any pair + Gold
Trade Style: scalping, day trading, swing trading
Download
Download the 5 Minute Forex Scalping System With SMA 200
Buy Trade Example: EUR/USD (EURO / United States Dollar), M5 Chart
Fig. 1.0
Strategy
Buy Trade Setup
Open a buy trade when the following conditions are met:
- The 200 SMA MT4 indicator should be printing a blue averaging line below the candlesticks indicating a bullish trend.
- The chanel scalper indicator should be printing an orange channel below the price bars indicating a bullish trend reversal.
- The coppock forex indicator should be printing red histograms above the zero-horizontal level indicating a bullish trend.
Stop Loss
Set the stop loss below the 200 SMA.
Take Profit
- Close the trade as soon as the price opens and closes below the 200 SMA indicator.
- Alternatively, close the trade for a predetermined profit target, for example exit the buy trade for +25 pips TP on the 5-minute time frame.
- Then again, close the trade when the chanel scalper indicator pops up a yellow channel above the candlesticks.
Sell Trade Example: EUR/USD (EURO / United States Dollar), M5 Chart
Fig. 1.1
Sell Trade Setup
Open a sell trade when the following conditions are met:
- The 200 SMA MT4 indicator should be printing a blue averaging line above the candlesticks indicating a bearish trend.
- The chanel scalper indicator should be printing a yellow channel above the price bars indicating a bearish trend reversal.
- The coppock forex indicator should be printing red histograms below the zero-horizontal level indicating a bearish trend.
Stop Loss
Set the stop loss above the 200 SMA.
Take Profit
- Close the trade as soon as the price opens and closes above the 200 SMA indicator.
- Alternatively, close the trade for a predetermined profit target, for example exit the sell trade for +25 pips TP on the 5-minute time frame.
- Then again, close the trade when the chanel scalper indicator pops up an orange channel below the candlesticks.
Free Download
Download the 5 Minute Forex Scalping System With SMA 200
About The Forex Technical Indicators Used
The 200 SMA (Simple Moving Average) is a technical analysis indicator that smoothens out currency pair price data by constantly creating an updated average price over the last 200 periods.
The chanel scalper is a trend indicator that paints an orange (bullish trigger) line below price bars and a yellow (bearish trend) line above price bars to depict market trends.
The Coppock MT4 indicator is a technical study that is built on three different Moving Averages i.e. Exponential, Linear Weighted, and the Simple Moving Averages.
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