Forex Scalping Strategy with Fibonacci: Boosting Profits in Forex Trading!

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Without further ado, let’s dive straight into the strategy of the day. Today, I will be unveiling a highly effective scalping strategy for the forex market using Fibonacci on a 5-minute chart. This strategy has proven to be one of the best, consistently yielding profits.

To get started, let’s quickly go over the steps before diving deep into the details:

1. **Identifying the Highest and Lowest Points on the Chart**:
– Switch your chart to a daily timeframe to mark the highest and lowest points.
– Once marked, revert to the 5-minute timeframe.

2. **Drawing the Fibonacci Retracement**:
– With the points identified in step 1, draw a Fibonacci retracement between the highest and lowest points.

3. **Trading Based on Candle Positions**:
– If a candle closes above the body and tail of the preceding candle and above a Fibonacci level, initiate buy positions progressively until it hits the top point identified in step 1.
– Conversely, if it closes below the previous candle’s low and beneath a Fibonacci level, initiate sell positions progressively until it reaches the bottom level identified in step 1.

Now, let’s break this down with a live demonstration on the chart. I am using my live account, initiated with a $200 balance specifically for crafting strategy videos. In this session, we will be focusing on the Australian Dollar versus the Japanese Yen pair.

Let’s kick off with the daily timeframe chart:
– Here, I am pinpointing the recent high and low points of the preceding candle. If necessary, we will refer to earlier candles to identify these points. This concludes our first step.

Moving on to the second step:
– Returning to the 5-minute timeframe, notice how I have condensed the chart area to clearly visualize the recent high and low points marked earlier.
– Utilizing the built-in Fibonacci tool on MT5, I will draw the Fibonacci levels between these two points, illustrating how it’s done.

Finally, step 3, executing a trade:
– I will patiently wait for the current candle to complete. Depending on its closing position relative to the Fibonacci level and the previous candle’s high or low, I will initiate a buy or sell trade. This process continues, adding to the buy or sell positions until reaching the high or low point established in step 1.

And there you have it, folks! Apply this strategy to any pair for scalping, but always manage your lot size and risk judiciously, as markets are inherently unpredictable.

Thank you for tuning in! Remember to subscribe for more thrilling videos like this one.

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Please watch: “1 Minute Forex Scalping Strategy : Trade Smart and Profit Big”

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