Ok, here we are. Today my post is about scalping in 5 minute Forex charts.
Those small Forex time frames may scare some big Forex traders, but they are very appealing to small traders. And there is a reason for that:
While trading daily or hourly a trader stays constantly under the pressure and stress, even if it is minor, it is still there. The stress is caused by inability to know what is going on with the market while a trader is away from the chart.
This state of mind is not known to scalpers. They always know what the price is doing simply because they watch it tick by tick.
Now, talking about randomness on small time frames. Ok, take the first tool - trend line, set it on 5 minute chart. What do you see? Price obeys the line! When a trend line is broken we can see a sell off or a rally. No randomness, same rules as for large time frames.
Well, let's take Fibonacci tool now. Set it on 5 minute chart, try it even on 1 minute chart - no randomness there either - retracement levels and extension levels are followed.
Now, take your favorite 200 EMA. For those who don't have this tool in favorites, anyway, try it out. What we know about 200 EMA is that it sets visual border between bulls and bears. We know, traders use this 200 EMA on daily, hourly etc frames. See how nicely 200 EMA plays its role on 5 minute frame... Now switch to 1 minute... Amazing, it is still works there showing bulls and bears territories!
Want more examples? Forex traders, like me, like you - scalpers, use MACD, Stochastic, CCI, RSI, Moving averages etc etc etc on 15, 10, 5 minute and 1 minute time frames and are happy with the patterns they observe.
In my sole opinion, Forex traders who call small time frames random simply don't know how to trade them. I also know that my favorite 5 minute time frame is not random! I profit from trading with it, I profit constantly and make my decision based on a strict set of rules, not and never spontaneously! Scalpers are simply faster decision makers then position traders, but both use same knowledge about Forex trading, apply same tools and see same patterns.
Till next time,
Happy scalping in Forex!