5 Min Trend Follower is a scalping strategy. It is a trend following scalping system. It is easy to go forex trading system and it can be used to trade wide range of asset classes. This forex trading strategy gives very clear signal and which are executable in practical market environment to make consistent profits. As it is a trend following scalping system, this system should be used to trade in trending market environment. The indicators in the main chart window are responsible for generating trade signals and the indicators in the indicator window help to validate the signals.
5 Min Trend Follower Overview
There are half dozen indicators used in this forex trading system but I would like to focus only on important ones here. I’ve focused only on 4 indicators in this trading system.
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5 Min Trend Follower Indicators
- EMA Crossover Signals (Arrows)
EMA Crossover Signals are the green and red arrows that you see on the main chart. These arrows are formed based on the crossovers of the exponential moving averages.
- Slope Directional Line
Slope directional line is a moving average like indicator. It changes its color as per the direction of the market. When the market is up trending this indicator turns blue and when the market is down trending this indicator turns orange.
- Rainbow MMA
Rainbow MMA indicator comprises of many moving averages of different colors. Yellow moving average is the fastest one and the red one is the slowest one. Thus, when the yellow moving average is at the top you should understand that the market is up trending strongly and vice versa.
MACD indicator has histogram here. Positive histogram means bullish market situation while the negative histogram suggests bearish.
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5 Min Trend Follower: Buying Parameters
- Yellow moving average should be at the top (red should be at the bottom).
- Slope directional line should be blue.
- EMA crossover signal (arrow) should form green arrow below the market.
- MACD should have positive histogram.
- Start your buy position when these parameters are met.
- Keep your stop loss below the recent swing low.
- Take out your profits when you see a red arrow (EMA crossover signal) above the market.
5 Min Trend Follower: Selling Parameters
- Yellow moving average should be at the bottom (red should be at the top).
- Slope directional line should be orange.
- EMA crossover signal (arrow) should form red arrow above the market.
- MACD should have negative histogram.
- Start your sell position when these parameters are met.
- Keep your stop loss above the recent swing high.
- Take out your profits when you see a green arrow (EMA crossover signal) below the market.