100% Rebate XM automatic Transfer to Your MyWallet Account everyday! , The Biggest XM Cashback Rebate in the World..!

Select you Language

List Country Support 100% Rebate XM

Web Login XM Register XM Rebates List Commision 100%

Mastering 5-Minute Forex Scalping: A Guide with EMA 200 and Stochastic Indicator

 



Functions of EMA 200 and Stochastic Indicators:

1. EMA 200 (Exponential Moving Average):

  • Used as a trend filter.
  • Identifies an uptrend when prices move above EMA 200.
  • Identifies a downtrend when prices move below EMA 200.

2. Stochastic:

  • An oscillator indicator to measure market saturation levels.
  • Used as a signal trigger when price movements reach overbought (overbought) or oversold (overbought) conditions.

5-Minute Scalping Entry Rules:

Buy:

  • Ensure prices are in an uptrend or above EMA 200.
  • Monitor the Stochastic curve and wait for oversold conditions.
  • Open a Buy position around the Stochastic line at 20.
  • Place a Stop Loss 10-15 pips below the entry point.
  • Set a profit target around 20-30 pips.

Sell:

  • Ensure prices are in a downtrend or below EMA 200.
  • Monitor the Stochastic curve and wait for overbought conditions.
  • Open a Sell position around the Stochastic line at 80.
  • Place a Stop Loss 10-15 pips above the entry point.
  • Set a profit target around 20-30 pips.



Tips to Maximize Profit:

1. Avoid Sideways Conditions:

  • This strategy is more effective in trending markets, not sideways ones.

2. Use Price Action Analysis:

  • Utilize candlestick reversal patterns when Stochastic reaches overbought or oversold zones.

3. Utilize Trailing Stop:

  • Implement a Trailing Stop as a dynamic Stop Loss to secure profits.


The 5-minute scalping strategy with EMA 200 and Stochastic relies on trend identification and overbought/oversold signals for entry and exit positions.
Traders are advised to understand market conditions and avoid trading during sideways markets.


Share:



Download Platforms

(MetaTrader for PC, Mac, Multiterminal, WebTrader, iPad, iPhone, Android and Tablet)


Popular Posts

List Country Support 100% Rebate XM

Algeria, Angola, Antigua and Barbuda , Armenia, Bahamas, Bahrain, Bangladesh, Belarus, Benin, Bhutan, Brunei, Burkina Faso, Burundi, Cambodia, Cameroon, Cape Verde, Central African Republic , Chad, Chile, China, Colombia , Comoros , Djibouti, Dominica, Dominican Republic , East Timor, Egypt (Mesir), Equatorial Guinea , Eritrea, Ethiopia, Gabon, Gambia, Ghana, Hong Kong, India, Indonesia, Iraq , Jamaica , Jordan (Yordania), Kazakhstan, Kenya, Kiribati, Kuwait, Kyrgyzstan, Laos, Lebanon, Lesotho, Libya, Macau, Madagascar , Malawi, Malaysia, Maldives , Mali, Malta, Marshall Islands , Martinique , Mauritania, Mauritius, Micronesia, Mongolia, Morocco , Mozambique, Namibia, Nauru, Nepal, Niger, Nigeria, Niue, Oman, Pakistan, Palestine, Papua New Guinea, Philippines, Qatar, Saudi Arabia, Singapore, Somalia, South Africa, South Korea, Sri Lanka, Taiwan, Tajikistan, Tanzania, Thailand, Togo, Tunisia, Turkey, Turkmenistan, Tuvalu, Uganda, Ukraine, United Arab Emirates, Uzbekistan, Vietnam, Zambia, Zimbabwe