I’m back from vacation and made almost $10,000 last week with a mindblowing scalping strategy. Let me show you exactly how to do it.
I profited $9,486.87 in just four trading days. On the first day, I made $4,961; on the second, I lost $3,200. On the third day, I made $3,700 in one trade and $4,000 in another, getting me over $9,000 in one week.
I did all of these trades using a simple zigzag indicator and two other simple indicators for confluence.
5 Minute Scalping Strategy With Zig Zag Indicator
The first thing to do is get to install some indicators after setting your timeframe to five minutes because we are scalping this week.
The first indicator is the Momentum-based Zigzag by Peter O. It is a buy-and-sell indicator with green signifying the former (for buying) and red, the latter (for selling).
I’ve found this indicator works well when the market is ranging. Hence, if the market isn’t in a trend and you don’t know what to do, this is a strategy that you can try.
We need two more indicators per confluence. Hence, the second to install is the SSL Hybrid. It’s a little bit crazy looking, so you’ll want to edit it by double-clicking. Go to the “Style” section and uncheck every box except the bar color as an easy additional confluence.
Then go to the “Inputs” tab and change the SSL baseline length to 200. The indicator is now perfectly installed.
We only use this SSL Hybrid as an additional confluence. If the candles are blue, we are looking to buy trades. If they are red, we are looking for sell trades.
Finally, the last indicator to install is the ADX and DI.
Like the last one, double-click it for styling. Make the “ADX” blue for easier visibility. Make every line thicker, and that’s all.
If you missed anything, watch the Youtube video for better guidance and smash the like button while you’re at it. Also, leave a comment if you have any questions cause I’m always here to help.
Scalping Strategy Rules
For the rules, I have two examples to show you – a buy and a sell trade.
The strategy is easy; follow these steps painstakingly:
- The first thing to anticipate for a buy trade is a long green label from the indicators.
- Observe the candle color, waiting for blue ones (but they should be red in sell trades).
- Check the ADX and DI indicator for the red line to be below the 20 level while the blue and green lines are above that.
When we have all of those things, we look for a buying opportunity immediately, and (in my video shared above) the trade worked out perfectly.
As for my stop loss, I set it below the recent swing low and placed the take profit at a level for a 1.5 risk-reward ratio. However, my sample backtest trade was about 2.5.
For a sell trade, take the following steps:
- We want a short label on the chart.
- The candles should be red candles, telling us we are going down and can open sell orders.
- The green line on the ADX and DI indicator is below the 20 level, while the red and blue ones are above that level.
We enter our trade under these conditions, and in my sample one, it smashed our take profit. It was at a 2.52 risk-reward ratio.
I put the stop loss above the recent swing high and the take profit at a level equal to or more than a 1.5 risk-reward ratio.
Live Trades With The Scalping Strategy
My first live trade of the week was on the EURUSD forex pair.
I had the short label, red candles, and the green line below the 20 level. However, I made a mistake because the red and blue ones were supposed to be above the level but weren’t.
I was just starting with this strategy and made this error, but it smashed my take profit despite almost going against me.
I made a fair amount (about $5,000) on this trade, which worked fine. Regardless, I made a mistake and should have followed the rules more closely.
A better place to enter the trade would’ve been off a label showing later or not placing this trade at all.
Luckily, I didn’t get stopped out earlier, but I deserved to because I didn’t use the strategy correctly.
Second Trade (Sell)
My second trade was another short on the AUDCHF.
I saw the short-label red candles, so the next thing I was looking for was the green line below the 20 level and the blue and red lines above it. I got them, then entered the trade.
The trade went against me immediately and smashed my stop loss to a 1% loss. It wasn’t a good trade.
I lost a few thousand dollars; that’s how trading goes sometimes. However, I will always show you these losses because this trading strategy (like every other one) won’t work under all market conditions. Hence, always add extra confluences to ensure you’re winning your trades.
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Third Trade (Buy)
My third was on gold, and it gave me more insights into the strategy.
The market had a typical zigzag pattern. It pushed up and pulled back twice before we saw a long label.
The blue candles meant we could have a buy trade. Moreover, the green and blue lines below broke above the 20 level, and the red line was below it. Hence, all the confluences allowed me to open a buy order.
The trade went in my direction and smashed my take profit, banking me another few thousand dollars.
The benefit of having the 1.5% risk-reward ratio is that, at this point, I’ve traded three times, winning two and losing one, but I’m still up 2%.
Fourth Trade (Buy)
It was a US30 trade, and as usual, I first looked for the long label, which I saw. I saw the blue candle and the blue and green line above the 20 crossed, with red below it.
Eventually, it was just an incredible trade, smashing my take profit almost immediately, banking me another few thousand dollars. It went well beyond that level that would have recorded even more profit.
Hence, maybe this is a strategy you want to test out on US30 because it is the best trade I had this week.
As you can see in my live trading account, the US30 trade banked me $4,000. My Gold Trade bank meet $3,700. I lost $3,200 on an Australian dollar Swiss Franc trade, and then I won almost $5,000 on my Euro US dollar trade, which I made a mistake on, but I’ll gladly take that money to the bank.
That means I won three out of four trades for a 75%-win rate trading the strategy in just four days. The average trade length during that period was 2 hours and 17 minutes.
I won all my long trades and 50% of my short ones. My average win was thousands of pips, and my average loss was 13 pips.
It is a bit miscalculated because the US30 and gold trades pips work quite differently.
I enjoy this strategy and feel it works well in ranging market conditions. I’d use a different one when the market was in a significant up or down trend. However, if the market is consolidating, you may want to test this strategy and see if it works.
If you’re looking for signals from me, I have a VIP room and a free one. We provide analysis, discuss the news, and talk about canceled orders. We show our wins and post various updates on what we are doing with our trades.
There was an incredible trade where we banked 3% (58 pips). We adjusted the stop loss to the entry point, so if you want to be part of this fantastic, use the link shared above.
If not, that’s fine. I’m just happy that you stayed and read this far.
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