5 min forex scalping with GBP/USD

5 min forex scalping with GBP/USD is trend following system based on channel Emas'.

Time Frame 5 min.

Currency pairs: GBP/USD, S6P 500, Dax.

Forex Indicators:

Simple MA 20 period, High,

Simple MA 20 period, Low,

Parabolic Sar 0.011 – 0.01,

Fast MACD oscillator ( 5, 8, 9).

time for trading (8:00 12:00 GMT -14:00 – 20:00). Do not trade before the news.

Trading rules 5 min forex scalping with GBP/USD

Buy

The parabolic Sar below the price.

The price is above the Simple MA 20 period, High.

MACD Histogram above zero level.

Place initial stop loss 12 pips

Profit Target 9-12 pips.

After 8 pips in gain move stop loss at the break even.

Exit if the parabolic reversal.

Sell

The parabolic Sar above the price.

The price is below the Simple MA 20 period, Low.

MACD Histogram below zero level.

Place initial stop loss 12 pips

Profit Target 9-12 pips.

After 8 pips in gain move stop loss at the break even.

Exit if the parabolic reversal.

Conservative setting is with slow MACD (18, 34, 12), this setup is very interesting.

Do not entry after 5 bars by the signal.

Disavantages of this system is the low ratio profit target / stop loss = 1:1 also if the profittability is more of 58 %. In sideways market this system generates false signals.

In charts below 5 min forex scalping with GBP/USD examples.