The 5 Minute Scalping Strategy You Must Know

In this blog post, I will take you through the 5 minute scalping strategy you must know. And yes, it is a must and a trading changer.

First of all, go to the TradingView platform and go to the 5 minute chart. Just press the number 5 and then enter. Every candlestick represents 5 minutes now.

As with other scalping strategies (such as this 1 minute scalping strategy), I will guide you step by step.

The 5 Minute Scalping Strategy You Must Know Step By Step

On the image above, we are on EURUSD, on the 5 minute timeframe. As you might know already, we are price action traders and hence we follow price action.

We can clearly see a break of structure (BOS) above the previous swing high. Since we see this strong bullish pressure, we can assume that price will come back and retest the area responsible for the BOS. Then, we will be able to scalp the 5 minute timeframe.

Some people call this area a support area. We will call it an orderblock (OB). Or, in this occasion we will rather call it order blocks (OBs), because there is more order blocks than one.

So, how do we enter trades in these areas?

Step 1. Mark The OBs That Are Responsible For The BOS

Above, we can see the 2 OBs that are “responsible” for the BOS. How do we know that these are the right OBs to enter scalping trades from? We know that they are the last bearish candlesticks before the BOS occurred.

Do we know whether price is going to react to the first one or the second one? No, we do not know that. If we would know that we would be billionaires already. We can just assume that it is going to retrace from one of those areas.

It is the only way with every single strategy, including this 5 minute scalping strategy you must know.

Step 2. Place Pending Orders on Both OBs

As you can see, we reduced the huge are of the first OB just to the wick. A wick is the part of the candlestick that grabbed all the liquidity. In addition to that, on a smaller time-frame a wick it is an OB by itself.

Nonetheless, the second OB remains exactly the same as it was before. Now, it is time to place 2 buy limit orders on both OBs and scalp the 5 minute timeframe.

Step 3. Trade Entry, Stop Loss And Take Profit Placement (5 minute scalping strategy you must know)

We place buy limit orders on both OBs. Nonetheless, I just show the first one in order to keep the chart clear.

Hence, we place the pending orders at the beginning of the highlighted OB area. In addition to that, the stop loss goes just below the area and we take our profits at the previous high. In this example, we win a 13.4/1 Reward to Risk (RR). So, Just by a single trade, we managed to hit that much.

This is why you must know this 5 minute scalping strategy.

Let’s say that I am risking 1% of my balance and I take this trade. I just made 13.4%. This is $13400 on a 100k trading account and a $1340 on a 10k account. Not bad right?

Now, I will take you through some more examples.

More examples on this 5 minute scalping strategy you must know

The best thing that we can do, is build upon the previous example. So, we follow price action once again. As we can see on the image above, we broke previous structure and we have already won the first trade of 13.4/1 RR.

In addition to that, we already see the first retracement. Hence, it is about time that we look out for our bullish OBS. Again, they are called bullish OBs, but they are the last bearish candlesticks before the BOS. Well, they can be bullish candlesticks too as far as they go below the last candlestick.

In this second example, we highlight all the potential OBs as well. In this occasion it is all three that you see on the image above.

Again, we do not know where price is going to retrace from. Nonetheless, the first OB is the most probable one. Why is that? Because it is the last OBs after which price broke structure towards the up-side. Let’s see how this one plays out.

On the image above, we see that we were activated on the most probable OB and we managed to hit our take profit with a 17/1 RR.

To sum things up

With this 5 minute scalping strategy, we just follow price action. It does not matter what the higher timeframes do.

Just zoom out a little bit, so that you can see only recent price action. We wait for swing highs or swing lows to be broken on the 5 minute timeframe.

When such break of structure happens, we identify the most important order blocks. Those are order blocks which are responsible for a break of structure.

Since we do not know which order block price is going to retrace from, we place pending orders on all order blocks that were responsible for a break of structure.

We only delete a pending order in case that the previous one activated us into the trade and the trade was won. This means only if price breaks the previous swing high or swing low.

We keep repeating the same process again and again.

Here is my video on this strategy

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Day trading strategies (including this 5 minute scalping strategy you must know) can be very risky if you do not control your emotions and if you do not have a strategy which is giving you a statistical advantage.

It is normal that you will go through periods of consecutive losses and consecutive wins as well. If you want to be able to calculate those aspects of trading in advance and build a robust winning strategy, then you can check out my courses.

In the courses, I teach you elaborate winning trading strategies. Furthermore, I teach you how to build a robust trading plan, starting with the importance of statistics and trading psychology. That way, you can take your trading to the next level.

As with all trading strategies presented here on ChrisFX, if you want to test them out, do so by trading with fake money, or otherwise paper money. NEVER test one of these strategies with real money. When and if you decide to do so, you do so at your own risk and I take zero responsibility for your actions.

Enjoy 🙂