5 min Forex Scalping Strategy with Parabolic SAR and MACD

5 Min Forex Scalping Strategy with Parabolic SAR and MACD

We created The 5 Min Forex Scalping Strategy using the standard MT4 Indicator, Parabolic SAR and the popular momentum indicator, MACD, for fast entry and exit. The 5-minute chart can be an interesting time frame to trade for scalpers and intra-day traders. At the very least, the 5-minute chart can offer traders the ability to scalp 10 – 15 pips a day and is suited for part time traders as well as full time traders. Due to the time frame, any 5-minute chart is ideal for trading on just the major currency pairs and ones which have tight spread.

In this 5-minute forex scalping strategy with Parabolic sar and MACD, traders are introduced to a simple yet efficient way to trade the markets. The trick is in of course, staying disciplined in this approach.

5 Min Forex Scalping Strategy with Parabolic sar and MACD

For the chart set up, you simply need the Parabolic SAR with the default settings (Step: 0.02, Maximum 0.2) and the MACD indicator (attached to this article, and not to be confused with the default MT4 MACD indicator). The MACD can be used as the default settings of 12, 26 and 9.

Click here to download the Parabolic SAR MT4 Indicator

Once the indicators are added your chart set up looks like this.

5 min Forex Scalping Strategy with Parabolic SAR and MACD

5 min Forex Scalping Strategy with Parabolic SAR and MACD

Parabolic SAR and MACD Scalping – Trading Examples

5 min Forex Scalping Strategy - Short Trade Example

5 min Forex Scalping Strategy – Short Trade Example

  1. Strong downtrend is noted with PSAR above price
  2. Price makes a low at 1.12146 before retracing (and confirmed with PSAR switching below price)
  3. Sell at the low, confirmed by MACD making a bearish crossover. Targets at 10 pips and 20 pips from entry with stops at the high of the retracement
5 min Forex Scalping Strategy - Long Trade Example

5 min Forex Scalping Strategy – Long Trade Example

  1. Price is in an uptrend with PSAR below price
  2. Price makes a high at 1.11827 and then makes a small retracement
  3. Buy on the breakout of this high with targets set to 10 pips and 20 pips (only first target is reached here)

5 min Forex Scalping Strategy with Parabolic SAR and MACD Scalping – Final Thoughts

  • If anytime after the trade is triggered and the PSAR switches, then exit at market and wait for a better set up
  • Move stops to break even when the first target is triggered
  • Always account for spreads. For example, if EURUSD spread is 1 pip and your target is 1.11837, then adjust the target to 1.11827 to ensure that you miss out on taking profit
  • Best times to trade this strategy is during European and US trading sessions

A final example of this scalping strategy with notes on chart.

5 min Forex Scalping Strategy - Easy to Implement Strategy

5 min Forex Scalping Strategy – Easy to Implement Strategy


Claim Your $60 No Deposit Bonus Here

All you need is to have your live account verified!
Of course, you need to open a live account...

2 Brokers that we like A LOT!
USD30 from each Forex Broker Below.
Both Forex Brokers have excellent rating!

Broker #1

Broker #2

We use both of these brokers and proudly promote them!

NOTE: Not all countries qualify for these bonuses. Terms and Condition Applies.

Other Analysis Today
Learn and SHARE the Knowledge!
Click Here to Leave a Comment Below 2 comments
Do NOT follow this link or you will be banned from the site!

The AllPips Trend Indicator

Trading is simple when the Trend is Your Friend.
Enter Your Details Below to Download FREE Now.

envelope-o
long-arrow-down