5 min Scalping New York Session Strategy For MT4
Table Of Contents:
- 5 min Scalping New York Session Strategy For MT4
- The 15 Min scalping New York session strategy – Long positions
- The 5 Min scalping New York session strategy – Short positions
- Is 5 Min scalping New York session strategy good for you?
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The 5 min Scalping New York Session Strategy For MT4 , as the name suggests is a short term scalping system. This trading system dictates that you should trade this method only during the New York trading session. But in reality, you can trade this in any session.
The markets do not adversely change during the New York session and neither is there anything special about the New York session. The reason for focusing on the New York session is possibly because of liquidity. But you could see the same kind of liquidity during the Tokyo and Europe overlap session as well as the Europe and the New York overlap session as well.
Further down this article, you will learn why the sessions don't really matter. This is because of the indicators used. The 5 Min scalping New York session strategy uses some of the basic and widely available forex trading indicators. And none of these indicators really gives you any edge in the markets that would make it somewhat unique.
The first indicator is of course the Heiken Ashi indicator. The Heiken Ashi indicator is responsible for depicting the trends in the market. Thus, you could look at the Heiken Ashi candlesticks as a trend filter itself. Following this, we have two moving averages as well. The two moving averages make use of 5 and 10 period exponential moving average settings. The moving averages shows the short term trend on the charts. Thus, long and short positions are taken based off these moving averages and also accounting for the Heiken Ashi indicator.
In the first sub window of the 5 Min scalping New York session strategy, we have the Stochastics oscillator. As you might know, the Stochastics oscillator is a momentum indicator. It signals the rising and falling momentum and indicates whether the markets will continue to move in the same direction of the trend or not.
The Stochastics oscillator makes use of a 10, 3, 3, setting with the price field set to high and low and uses the simple moving average method. In the second sub window of the 5 Min scalping New York session strategy, we have the Relative strength indicator. The RSI uses a setting of 9 period and basically indicates the relative strength or the momentum of the price action. In some ways, we find that the Stochastics oscillator and the Relative strength indicator basically depict the same information.
Therefore, if you wish, you could remove one of these two indicators. Furthermore, if you want, you could also replace one of these indicators with the moving average convergence divergence or the MACD indicator.
As you will see later in this article the 5 Min scalping New York session strategy is simply a trend following indicator which focuses on the short term trends in the market. Therefore, whether you use this on a New York session, or anytime you wish, there isn’t much of an edge that you get.
Thus, combining all the above indicators you get the 5 Min scalping New York session strategy. let's now take a look at how you can trade long and short positions using this trading system.
The 15 Min scalping New York session strategy – Long positions
For long positions using the 5 Min scalping New York session strategy, we start by looking at and identifying the trends. This is done by firstly looking for the Heiken Ashi candlesticks turning green. This indicates that the market is moving higher. Following this, we then look to the two moving averages to also signal the bullish market by the bullish crossover.
The next step is to look to the two indicators in the sub window. We need to see the Stochastics oscillator turning bullish from the oversold levels. At the same time, the RSI indicator also needs to move higher from the oversold levels.
Now take a long position at market and set your stop loss to the recent swing low that you see. This is ideally near the lows of the Heiken Ashi candlesticks which are still red. Using a 1:3 risk reward set up, you can then set your take profit.
The 5 Min scalping New York session strategy – Short positions
For short positions using the 5 Min scalping New York session strategy, we start by looking at and identifying the trends. This is done by firstly looking for the Heiken Ashi candlesticks turning red. This indicates that the market is moving lower. Following this, we then look to the two moving averages to also signal the bearish market by the bearish crossover.
The next step is to look to the two indicators in the sub window. We need to see the Stochastics oscillator turning bearish from the overbought levels. At the same time, the RSI indicator also needs to move lower from the overbought levels.
Now take a short position at market and set your stop loss to the recent swing high that you see. This is ideally near the highs of the Heiken Ashi candlesticks which are still green. Using a 1:3 risk reward set up, you can then set your take profit.
Is 5 Min scalping New York session strategy good for you?
In conclusion, the 5 Min scalping New York session strategy is a rather simple trend following trading system that is applied to the short term charts. Although the title of the trading strategy mentions that it is a 5 minute trading system, you can use this on any time frame of your choice. The only difference being that when you use the 5 Min scalping New York session strategy on the short term charts, you get to see lot more trading signals
The template that comes with the 5 Min scalping New York session strategy is very light weight as it makes use of the standard indicators that are already available on the MT4 trading system. You can use this template to monitor multiple charts at the same time. However, if you trade the 5 Min scalping New York session strategy on the short term charts, bear in mind that you will need to constantly watch your trades.
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