Five-Minute Strategy

Intraday Forex strategies often are built on following narrow time-frame patterns on technical charts. The five-minute intraday strategy, outlined by the Forextac website and credited to veteran trader Phillip Nell, is built on the premise of closing monitoring chart patterns on a five-minute chart. The website notes that to apply the strategy, you need to plot a 50 simple moving average (SMA), 21 exponential moving average (EMA) and 10 EMA. According to Nell’s strategy, Open (your) position when the angle of the 50 simple moving averages are greater than 20 degrees and the price retrace back into the zone of the 21 exponential moving average and the 10 exponential moving average. The turnaround is quick, as you set a stop-loss at six to eight pips and take profit at eight to 10 pips.

The Momentum Box

Divergence and Pivot Levels

Kevin Barry outlines a five-minute chart trading strategy on Meta Stock Tools, in which he explains the use of moving average convergence-divergence (MACD) histogram divergence signals and pivot levels to identify quick entry and profit opportunities. The approach is based on conventional intraday pivot levels from the previous day’s high or low. However, he relies on midpoints for support and resistance that are between the standard pivot points. Barry states, I use a binary BB indicator and pivot levels, together with specific candlestick formations and MACD divergence for confirmation, for my trade entry. He sets his stop-loss just above or below his anticipated point of reversal.

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References

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