Introduction to the Bollinger Bands 5 Minute Forex Scalping Strategy
If you are a fan of scalping strategies and Bollinger Bands indicator, we have a great trading system for you to check and it’s called the Bollinger Bands 5 Minute Forex Scalping Strategy. One can get a lot of winning trades in a short span of time during sideway market conditions.
You don’t need any new indicators as everything is already in your MT4 trading platform. That strategy is suitable for a 5-minute timeframe and when it comes to currency pairs, choose the most liquid ones like EUR/USD or GBP/USD and trade only during major market sessions like London or New York.
Trading Rules for the Bollinger Bands 5 Minute Forex Scalping Strategy
The first and most important factor to consider is that the Bollinger Bands must be flat or almost flat. You should clearly see the price moving sideways and trading in the range. In such conditions, the upper Bollinger Band is used as a selling level or taking profit from a buy trade made from the lower band. On the other hand, the lower Bollinger Band is used as buying level or taking profit from a sell trade made from the upper band. The middle line is just a 20 simple moving average and you should use it for moving your stop loss to breakeven when the price breaks through it.
Remember that the rangebound market doesn’t last forever and there is often a big breakout after some time of price going sideways. When it happens, the Bollinger Bands widen a lot and a big candle takes place.
Make sure that the Bollinger Bands are pretty flat. Wait for the price to touch the lower BB and when it does so, open a buy order. Set SL to 10 pips below your entry. When the price breaks through middle BB, you can partially close your profits or move your SL to breakeven. Fully take profit when the price hits the upper BB.
Make sure that the Bollinger Bands are pretty flat. Wait for the price to touch the upper BB and when it does so, open a sell order. Set SL to 10 pips above your entry. When the price breaks through middle BB, you can partially close your profits or move your SL to breakeven. Fully take profit when the price hits the lower BB.
How to set up the Bollinger Bands indicator in MetaTrader (MT4)?
The Bollinger Bands indicator comes by default with every MT4 installation. First, run your trading platform.
Now go to the left side of your MT4 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The Bollinger Bands 5 Minute Forex Scalping Strategy is well worth adding to your trading collection. A good forex strategy will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex trading system provides false signals occasionally. Its performance will vary significantly depending on market conditions.