Alright Guys,you’re welcome to the concluding part of the The 5Minute Scalping Strategy.So we’ll be delving into The Advance technique – 5Minute Scalping Strategy.So let’s get started Guys!
In this section I am going to explain how you can ride you’re scalping trades for longer to gain more profit, please understand that the basic system works perfectly well without these advanced techniques.Using the average daily range of a currency pair you can estimate how much further a trend may go in that day.
For example let’s say we have entered a trade on the EURUSD and we are in profit, the trend looks good and the London session has recently opened. The average daily range fore the EURUSD is around 70 pips so far in this session the daily range is only 30 pips this means that we have a good chance that price could go a lot further. In these situations it can be very profitable to hold onto a winning position until the end of the day or until you have substantial profit. Quite often I may protect 4-5 pips profit and let the trade ride.
To give your trades even more probability of success you can trade confluence of support and resistance with the zone, see picture below for example.
As you can see in the example support once broken often become resistance, if you get this along with a zone setup in a trend you are golden!
The last advanced technique I want to share with you will fit in with the other core systems from The Blade Forex Strategies package.Basically you will be keeping an eye on strong trend lines and looking for a break, it is like an early warning sign that if you do get an entry after the break of the trend line and you trade goes into profit you may want to hold on for a longer run than normal.
See example picture below of a 4 hour trend line that broke downwards if you saw this and a good setup that occurred on the 5 min to take a Short on the day of the break you know that you have a very good chance of making lots of pips provided you position does not get stopped out at break even.
Although this system is very profitable I do not recommend you use it as your main source of income. Try to focus on a longer term system from this package and use this one only when you see a really good opportunity. If you miss some good trades so what? You are here to make consistent money not gamble on every tick of the market.
Keep the 5 minute chart up on your screen throughout the day and watch for the trends on average you will get 2-3 good days a week with nice trends per pair, pairs with high spread are not as easy to profit from.