5-Minute Contrarian Scalping MT5

Submit by Joy22

5-Minute Contrarian Scalping MT5 is a contrarian fx strategy.

Timeframe:

• 5-minute chart (ideal for scalping).

Indicators:

1. Strong Buy and Sell (RSI-Based Indicator):

   • Buy Signal: A buy arrow is generated when RSI drops below 25, signaling an oversold condition.

   • Sell Signal: A sell arrow is generated when RSI rises above 75, signaling an overbought condition.

2. Trend Detector (Ribbon Indicator):

   • Buy Ribbon: When the trend is bullish, the ribbon turns green.

   • Sell Ribbon: When the trend is bearish, the ribbon turns brown.

Trade Entry Criteria:

Buy (Long) Entry:

1. Strong Buy and Sell: A buy arrow must appear, indicating a potential reversal from oversold conditions (RSI < 25).

2. Trend Detector: The ribbon must change to green, signaling a bullish trend.

3. Retracement: Wait for the price to retrace back into the green ribbon after the trend change.

• Entry Rule: Open a buy trade once all three conditions are met: the buy arrow, the trend change to green, and the price retracement into the ribbon.

Sell (Short) Entry:

1. Strong Buy and Sell: A sell arrow must appear, indicating a potential reversal from overbought conditions (RSI > 75).

2. Trend Detector: The ribbon must change to brown, signaling a bearish trend.

3. Retracement: Wait for the price to retrace back into the brown ribbon after the trend change.

• Entry Rule: Open a sell trade once all three conditions are met: the sell arrow, the trend change to brown, and the price retracement into the ribbon.

Up to two entries after a failure in the same direction.

Exit Criteria:

Stop Loss:

• Set the stop loss at the previous swing high for a sell trade and the previous swing low for a buy trade.

Take Profit:

• Use a risk-reward ratio of 1:1.2 to 1:1.5. For example:

  • If the stop loss is 15 pips, the take profit should be 18 to 22.5 pips away.

Risk Management:

• Position Sizing: Risk 1-2% of your account balance per trade.

Trade Example:

Buy Trade Example:

1. The Strong Buy and Sell indicator generates a buy arrow (RSI < 25).

2. The Trend Detector turns green, signaling an uptrend.

3. Wait for the price to pull back into the green ribbon.

4. Enter a buy trade when the price retraces into the ribbon.

5. Set the stop loss at the previous swing low.

6. Set the take profit at 1.2 to 1.5 times the stop loss distance.

Sell Trade Example:

1. The Strong Buy and Sell indicator generates a sell arrow (RSI > 75).

2. The Trend Detector turns brown, signaling a downtrend.

3. Wait for the price to pull back into the brown ribbon.

4. Enter a sell trade when the price retraces into the ribbon.

5. Set the stop loss at the previous swing high.

6. Set the take profit at 1.2 to 1.5 times the stop loss distance.

Conclusion:

The 5-Minute Contrarian Scalping MT5 Strategy combines two powerful indicators to identify potential reversals and trend continuations. It relies on the Strong Buy and Sell indicator (RSI-based) for timing, and the Trend Detector ribbon for confirming the trend. Proper stop-loss and take-profit levels ensure controlled risk and consistent profit potential.

Metatrader 5 Strategies