5 Minutes Momo Forex Strategy

The name of the system is 5 Minute Momo Forex Strategy. This forex system was introduced at "High Probability Trading Setups for the Currency Market" By Kathy Lien and Boris Schlossberg.  It is a simple Scalping Strategy using indicators of EMA and MACD.

Setup
EUR/USD 5 Minutes timeframe
EMA period 20
MACD  (12,26,9)


Open Buy Position When:

1. Look for currency pair to be trading below the 20-period EMA and MACD to be negative
2. Wait for price to cross above the 20-period EMA, make sure that MACD is either in the process of crossing from negative to positive or have crossed into positive territory no longer than 5 bars ago
3. Go long 10 pips above the 20-period EMA
4. For aggressive trade, place stop at swing low on 5 minute chart. For conservative trade, place stop 20 pips below 20-period EMA
5. Sell half of position at entry plus amount risked, move stop on second half to breakeven
6. Trail stop by higher of breakeven or 20-period EMA minus 15 pips

Open Sell Position When

1. Look for currency pair to be trading above the 20-period EMA and MACD to be positive
2. Wait for price to cross below the 20-period EMA, make sure that MACD is either in the process of crossing from positive to negative or have crossed into negative territory no longer than 5 bars ago
3. Go short 10 pips below the 20-period EMA
4. For aggressive trade, place stop at swing high on 5 minute chart. For conservative trade, place stop 20 pips above 20-period EMA
5. Buy back half of position at entry minus amount risked, move stop on second half to breakeven
6. Trail stop by lower of breakeven or 20-period EMA plus 15 pips