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The 5-Minute Trading Strategy
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5 minute momo trading system
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We would never want you to be dissatisfied! If you are unsatisfied with your purchase, contact the team and we'll help you out. Is this course beginner friendly? Of course. Everything you need to know from start to finish is covered in the training videos, whether you are brand new to forex, or an experienced trader broadening your knowledge. What am I getting with this course? Lifetime Course Access.
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- 5-Minute Forex “Momo” Trade Examples.
- Momo Forex Trading Strategy For MT4 (WITH DOWNLOAD).
This also includes access to all new updates made on the course curriculum in the future. Detailed videos explaining how I trade step by step from start to finish.
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As a result, we enter at 0. Our stop is the EMA plus 20 pips. At the time, the EMA was at 0. Our first target is the entry price minus the amount risked or 0.
The target is hit two hours later, and the stop on the second half is moved to breakeven. We then proceed to trail the second half of the position by the period EMA plus 15 pips. The second half is then closed at 0. In the chart below, the price crosses below the period EMA and we wait for 10 minutes for the MACD histogram to move into negative territory, thereby triggering our entry order at 1. Based on the rules above, as soon as the trade is triggered, we put our stop at the EMA plus 20 pips or 1.
Our first target is the entry price minus the amount risked, or 1. It gets triggered shortly thereafter. The second half of the position is eventually closed at 1. Coincidentally enough, the trade was also closed at the exact moment when the MACD histogram flipped into positive territory. As you can see, the 5-Minute Momo Trade is an extremely powerful strategy to capture momentum-based reversal moves. However, it does not always work, and it is important to explore an example of where it fails and to understand why this happens.
As seen above, the price crosses below the period EMA, and we wait for 20 minutes for the MACD histogram to move into negative territory, putting our entry order at 1. We place our stop at the EMA plus 20 pips or 1. Our first target is the entry price minus the amount risked or 1.
The price trades down to a low of 1. It then proceeds to reverse course, eventually hitting our stop, causing a total trade loss of 30 pips.
Using a broker that offers charting platforms with the ability to automate entries, exits, stop-loss orders , and trailing stops is helpful when using strategies based on technical indicators. When trading the 5-Minute Momo strategy, the most important thing to be wary of is trading ranges that are too tight or too wide. In quiet trading hours, where the price simply fluctuates around the EMA, MACD histogram may flip back and forth, causing many false signals. Alternatively, if this strategy is implemented in a currency pair with a trading range that is too wide, the stop might be hit before the target is triggered.
Trading Rules – 5-Minute Forex “Momo” Trade
The 5-Minute Momo strategy allows traders to profit from short bursts of momentum in forex pairs, while also providing solid exit rules required to protect profits. The goal is to identify a reversal as it is happening, open a position, and then rely on risk management tools—like trailing stops—to profit from the move and not jump ship too soon.
Like with many systems based on technical indicators , results will vary depending on market conditions. Technical Analysis Basic Education. Trading Strategies. Your Privacy Rights. To change or withdraw your consent choices for Investopedia.