There are as many strategies to trade FTTs as there are traders, to use them. But the tragedy will be if you are still trading without any more so on smaller timeframes like the 5 minutes or 1-minute timeframe.
Mere luck may deceive you that you can do it without a set of rules or adopting any proven strategy. But one day the markets will fix you to the point of despair. That is something I would never wish on you, dear friend.
There is a very clear line between luck and consistency. Luck may happen today and be gone tomorrow. Consistency will stick even on a bad day!
Traders who have learned to stick to that strategy, however sketchy, can tell you that for longevity and sustained trading, you need a strategy. Strategies inculcate discipline which will see one taming their emotions and trading like pros.
Enough of that. Now you already know that you need a strategy to live long in forex. How about I introduce another one to you?
Introducing the 5-minute trading strategy for Olymp Trade.
The Best 5 Minutes Scalping strategy.
We shall discuss two aspects you can include in the 5-minute trading strategy. You can then choose to do any or both, at the end of this post.
The two strategies we will discuss here are;
- The two EMA strategy – this aspect utilizes two EMAs, one with a period of 8 and another with a period of 20.
- And the three EMA aspect – this strategy utilizes three EMAs, one with a period of 9, another with a period of 21, and the last with a period of 55.
1. The Two EMA Strategy (EMA 8 and EMA 20).
This strategy uses two Exponential Moving Averages. One with a period of 8 and another with a period of 20. (EMA 8 and EMA 20). You can add a signal confirmation tool like the Moving Average Convergence Divergence (MACD) to make it more effective.
The trade duration should be set to 5 minutes while the chart timeframe is set to 1 minute.
The two EMA strategy relies on trend following and Exponential Moving Average crossovers to generate buy and sell signals.
Set Up your chart for the Two EMA aspect of the 5-minute trading strategy in the following quick steps;
- Choose the candlestick chart type.
- Set the candlesticks into a 1-minute time frame.
- Adjust the trade duration to 5 minutes.
- Apply Exponential Moving Average onto your chart and adjust it to 8 periods.
- Apply another Exponential Moving Average onto your chart and adjust it to 20 periods.
(Remember to set different colors for the two EMAs for ease of identification)
- Finally, apply the Moving Average Convergence Divergence (MACD) to your chart.
Your chart is ready to start trading using this strategy!!
That set up should now be able to generate you tradable signals, otherwise, it would be of no use. So how do you trade using this setup?
Consider to enter a Buy Position with this 5 minutes scalping stratgey if the following conditions are met;
- Both the 8 period and 20-period Exponential Moving Averages are moving up implying an uptrend.
- The 8 period EMA crosses over the 20 period EMA from below upwards.
- The MACD confirms an upward momentum.
Once all those conditions are met, place your UP trade and wait for the expiration of the 5 minutes.
Consider entering a Sell Position with this 5 minutes scalping strategy if the following conditions are met;
- Both the 8 period and 20-period Exponential Moving Averages are moving down implying a downtrend.
- The 8 period EMA crosses over the 20 period EMA from above downwards.
- The MACD confirms downward momentum.
Have the conditions been met? Then be sure to place your Sell order and wait for the 5 subsequent candles to form. You have high odds of winning such a trade.
2. Three EMA 5 Minutes Strategy (EMA 9, EMA 21, and EMA 55).
This is the best 5 minutes scalping strategy as it uses more indicators hence more accurate signals (three Exponential Moving Averages).
The moving averages used include a 9-period EMA, a 21-period EMA, and a 55-period EMA.
If you ask me why use these periods, I’ll say these are the best scalping strategy period. And combined together, they make the most effective scalping strategy you will ever see.
Like in the two EMA strategy, you can add a signal confirmation tool such as the Moving Average Convergence Divergence (MACD) to get more accurate signals with this 5 minutes scalping strategy.
The trade duration as well as the chart candlestick time frame is 5 minutes.
This strategy will capitalize on trend following, bouncing back of prices from moving averages as well as EMA crossovers.
Set Up your chart for the Three EMA, 5-minute trading strategy as follows;
- Choose the candlestick chart type.
- Set the candlesticks to a 5-minute time frame.
- Adjust the trade duration to 5 minutes.
- Apply Exponential Moving Average onto your chart, adjusting it into 9 periods.
- Apply another Exponential Moving Average onto your chart, adjusting it into 21 periods.
- Lastly, apply another Exponential Moving Average to your chart and adjust it to 55 periods.
(Remember to differentiate the three moving averages by choosing a different color for each)
- Apply the Moving Average Convergence Divergence (MACD).
Your chart is now very ready for trading the 5 minutes scalping strategy.
How then do we transform this chart set up into profits and gains in trading Fixed Time Trades? We are just about to find out.
Now that we have committed ourselves to 5 minutes, we will only handle one part of this strategy. That is the only aspect that works well with the 5-minute trade duration – Bouncing back of the prices from the moving averages.
EMA crossover and trend following may do better with higher time frames and different chart settings.
Now about bouncing back of prices from the EMAs – Prices will tend to rise or fall away from the EMAs but when they hit the EMAs (especially EMA 9), they bounce back. In the wake of this, let us see how this bouncing back can be spotted and traded on Fixed Time Trades.
Here are the steps to enter a Buy Position with this 5 minutes scalping strategy;
- EMA 9 and EMA 21 are above EMA 55, with EMA 9 being topmost, hinting to an uptrend.
- Most Candlesticks are bullish (Green) with only a few which are bearish (Red).
- Capitalize on that bearish (Red) candlestick and observe it.
- If it drops to the point of touching EMA 9, start preparing to enter a Buy position, but not immediately. Wait for expiration.
- If that bearish candlestick you are observing closes still in touch with EMA 9, Enter a Buy position.
(The trend is upwards and the next candlestick is most likely to be bullish)
- If that particular bearish candlestick does not end in touch with EMA 9 or never touches the EMA 9 at all, you would rather not go long. Relax.
(Note that the lower that bearish candlestick goes, the stronger the signal. It may actually go past EMA 9 to touch EMA 21 or even EMA 55)
Follow the following steps to enter a Sell Position on this 5 minutes scalping strategy;
- EMA 9 and EMA 21 are below EMA 55, with EMA 9 being the bottommost, hinting at a downtrend.
- Most Candlesticks are bearish (Red) with only a few which are bullish (Green).
- Capitalize on that bullish (Green) candlestick and observe it.
- If it rises to the point of touching EMA 9, start preparing to enter a Sell position, but not immediately. Wait for expiration.
- If that bullish candlestick you are observing closes still in touch with EMA 9, Enter a Sell position.
(The trend is downwards and the next candlestick is most likely to be bearish)
- If that particular bullish candlestick does not end in touch with EMA 9 or never touches the EMA 9 at all, you would rather not go short. Relax.
(Note that the higher that bullish candlestick goes, the stronger the signal. It may actually go past EMA 9 to touch EMA 21 or even EMA 55)
Two strategies merged into the 5-minute trading strategy. A very profitable and promising way to make money online. Will you still trade without one?
Give any of the two or even both, a try on your demo account and tell us what happens in the comment section.
- Deposit $10
- Trade with $1
- No withdrawal limit
- FREE demo account
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