Step By Step Combo-Hopper For 6 Pips
Step 1: Setup The EUR/USD 5-Minute Chart.
EUR/USD 5-Minute time frame chart with 50 and 100 simple moving averages, and a standard MACD.
Step 2: Time of day
I expect 2 waves of momentum during the active U.S. session. The first is unpredictable because there is over-lap between the first half of the trading day in Europe and the beginning of the day in the U.S. The second wave of momentum starts at 10:00 am most days. Look for your setup to start between 10:00 and 11:00 a.m. Your profit target should be reached within about 20 minutes of the trade opening.
Step 3: When to open the trade
The idea of this trade strategy is to pick up a piece of the action, when the action starts! We know the market is likely to move at 10:00 am. Make sure price is in position near the moving averages, and more importantly, make sure MACD is just getting ready to cross zero.
If those 3 things are lining up, get ready to open your trade.
Step 4: When to close the trade
Set your profit target to 6 pips. If the market has begun to move with this anticipated second wave of momentum, then your trade should find its way to profit within a few of bars (or about 20 minutes). Alternatively, you can set your profit target to a higher amount, and take whatever the market gives within about 1 hour of time. The point is to capture at least 6 pips, which should be easy to do several days a week.
Stop loss can be placed on the opposite side of the 50 sma.
MACD starts and ends the trade
Open the trade when the MACD crosses over zero as close to 10 a.m. as possible. If, at any time, the MACD goes back over zero against your open trade, immediately close the trade. The MACD is the signal that got you into the trade, and it’s the signal that ends it too.