M5 Scalping Strategy (S&D) - MT4/MT5 Resources
welcome!
Experienced Traders Here's a strategy you'll definitely want to check out. Essentially, it's a price action strategy that doesn't require arbitrary indicators!
In this article you will learn that I subscribe to a specific philosophy; Department of Science and Technology indicators are bullshit
Only when you come to this conclusion do you think you should continue reading about this strategy and all the advantages it has to offer.
I won't waste our time explaining every nuance of the concepts I've listed. If you don't understand a basic premise , please take some time to study it.
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There are these three concepts at the core of every transaction, and I will briefly explain them here.
Fair Value Gap - The Fair Value Gap occurs in a Triple Candle pattern when there is a large candle and the high of the previous candle and the low of the subsequent candle do not completely overlap that large candle. The space between these shadow lines is called the fair value gap
Supply vs. Demand - Identifying supply and demand areas is important because they can indicate potential areas of support or resistance. When price reaches supply territory, it may struggle to move higher and may reverse. Likewise, when price reaches a demand zone, it may have a hard time falling and may even reverse.
Structural Break - BOS occurs after a breakout of old highs when price makes lower lows, or occurs after a breakout of old lows when price makes higher highs.
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Long entry:
1) Determine the demand area.
2) After identifying FVG, the price significantly moves away from the demand area. Make sure it's at the beginning of the move.
3) Determine that the demand area has caused structural damage.
4) Wait for the price to return to the demand zone and take advantage of liquidity.
5) If the price does not break through the demand area (optional) , go long.
6) (Optional) Initially you can use the bottom of the demand area for a stop loss with a target of 1:2. As you progress, it's best not to use arbitrary RR but target specific market structures.
7 ) (Optional) Trade during New York trading hours, preferably before 12 o'clock for the simplest trades
reverse side of shorts
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advanced theory
"Clean" - After creating a supply or demand area during a run, if price never comes back to touch that area, this creates a "clean" area where price is more likely to react positively
" Dirty " - After a supply or demand area is created during a run, if price comes straight back and touches that area, this creates a "dirty" area where price is less likely to react positively
"Early" - FVGs that create supply or demand areas can appear at different times during the run. Typically, the earlier in the run this zone is created, the larger the reversal will be once it is hit.
200EMA - An optional indicator that traders can use to quickly understand market movements. Supply is set when price is above the 200 EMA and when price is below it. (This is just for convenience, 100% not necessary)
Experienced Traders Here's a strategy you'll definitely want to check out. Essentially, it's a price action strategy that doesn't require arbitrary indicators!
In this article you will learn that I subscribe to a specific philosophy; Department of Science and Technology indicators are bullshit
Only when you come to this conclusion do you think you should continue reading about this strategy and all the advantages it has to offer.
I won't waste our time explaining every nuance of the concepts I've listed. If you don't understand a basic premise , please take some time to study it.
______________________________________________________________________________________________________________
There are these three concepts at the core of every transaction, and I will briefly explain them here.
Fair Value Gap - The Fair Value Gap occurs in a Triple Candle pattern when there is a large candle and the high of the previous candle and the low of the subsequent candle do not completely overlap that large candle. The space between these shadow lines is called the fair value gap
Supply vs. Demand - Identifying supply and demand areas is important because they can indicate potential areas of support or resistance. When price reaches supply territory, it may struggle to move higher and may reverse. Likewise, when price reaches a demand zone, it may have a hard time falling and may even reverse.
Structural Break - BOS occurs after a breakout of old highs when price makes lower lows, or occurs after a breakout of old lows when price makes higher highs.
Long entry:
1) Determine the demand area.
2) After identifying FVG, the price significantly moves away from the demand area. Make sure it's at the beginning of the move.
3) Determine that the demand area has caused structural damage.
4) Wait for the price to return to the demand zone and take advantage of liquidity.
5) If the price does not break through the demand area (optional) , go long.
6) (Optional) Initially you can use the bottom of the demand area for a stop loss with a target of 1:2. As you progress, it's best not to use arbitrary RR but target specific market structures.
7 ) (Optional) Trade during New York trading hours, preferably before 12 o'clock for the simplest trades
reverse side of shorts
______________________________________________________________________________________________________________
advanced theory
"Clean" - After creating a supply or demand area during a run, if price never comes back to touch that area, this creates a "clean" area where price is more likely to react positively
" Dirty " - After a supply or demand area is created during a run, if price comes straight back and touches that area, this creates a "dirty" area where price is less likely to react positively
"Early" - FVGs that create supply or demand areas can appear at different times during the run. Typically, the earlier in the run this zone is created, the larger the reversal will be once it is hit.
200EMA - An optional indicator that traders can use to quickly understand market movements. Supply is set when price is above the 200 EMA and when price is below it. (This is just for convenience, 100% not necessary)
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This precise strategy has created many profitable traders. However, I am a curious person and I know there are many great minds on ForexFactory. I look forward to any and all contributions.
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