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5 Minute Forex Scalping Stochastic Supertrend Combo

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Master forex scalping by combining SuperTrend and Stochastic indicators on 5-minute charts. Enter long positions when price breaks above SuperTrend with Stochastic below 20, and short when price falls below SuperTrend with Stochastic above 80. Place stop orders 1 pip from the SuperTrend for protection.

Trade during UK and US sessions for best results, and practice on demo accounts first. The perfect scalping strategy awaits your discovery.

Quick Overview

  • Utilize the Stochastic oscillator with 7:%K and 3:%D settings for optimal sensitivity in identifying overbought and oversold conditions.
  • Enter long trades when price is above SuperTrend and Stochastic touches 20, placing orders 2 pips above the signal candle.
  • Execute short positions when price falls below SuperTrend and Stochastic crosses 80, with sell orders 1-2 pips below the candle.
  • Place stop-losses 1 pip from the SuperTrend line to protect against sudden market reversals.
  • Trade during UK and US sessions on 5-minute charts for increased volatility and more profitable scalping opportunities.

Setting Up SuperTrend and Stochastic Indicators

The foundation of successful scalping lies in properly configuring your technical indicators.

To get started, add these essential tools to your 5-minute charts:

  • SuperTrend settings: Apply with default parameters to identify trend direction
  • Stochastic parameters: Set %K period to 7 and %D period to 3 for ideal sensitivity
  • Best timeframe to trade: 5-minute charts
  • Trading Sessions: Both the UK and US sessions are good to use
  • Currency Pairs: EURUSD, GBPUSD, GBPJPY, EURJPY, AUDUSD, USDJPY, USDCHF

When properly configured, you’ll easily spot buying opportunities when price moves above the SuperTrend line and the Stochastic touches 20.

For selling, look for price below the SuperTrend with Stochastic hitting 80.

Long (Buying) Rules

5 Minute Forex Scalping System With Stochastic And Supertrend Indicator
  1. the price must be trading above the Supertrend line.
  2. check to see if Stochastic touches the 20 level or goes below it.
  3. if the above two conditions are met, initiate a buy order 2 pips above the candle
  4. place your stop loss 1 pip below the Supertrend line.
  5. aim for 10 pips profit target

Short (Selling) Rules

  1. the price must be trading below the Supertrend line.
  2. check to see if the Stochastic indicator crosses the 80 level or touches it
  3. if the above two conditions are met, initiate a sell order 1-2 pips below the candle
  4. place your stop loss 1 pip above the Supertrend line.
  5. aim for 10 pips profit target

Stop Orders: Key to Risk Management

Successful scalpers understand that stop orders represent your first line of defense in the volatile forex market. Rather than manually entering trades, stop orders ensure price movement confirms your analysis before committing capital.

Why are they important for your scalping success?

  • They validate that momentum aligns with your trade direction
  • Your buy-stop activates only when price momentum turns favorable
  • They create a 1-pip buffer around the SuperTrend indicator
  • They prevent impulsive entries when price action contradicts your strategy

Stop orders aren’t just entry tools—they’re essential risk management components that protect your trading account while enhancing your discipline.

Practicing Your Strategy Before Real Money Trading

Before risking your hard-earned capital in the forex market, you’ll need to test your scalping strategy in a risk-free environment.

Demo account importance can’t be overstated as it builds your confidence while eliminating financial stress.

Your demo trading should include:

  • Trading the 5-minute charts during UK and US sessions exclusively
  • Recording at least 50 trades before evaluating performance
  • Tracking emotional responses when trades go against you

Your Questions Answered

Which Broker Offers the Best Spreads for This Scalping Strategy?

You’ll need to compare broker options with tight spreads for scalping. Look for ECN/STP brokers like IC Markets, Pepperstone, or FXTM that offer minimal spread comparison for these pairs.

How Do You Adjust the Strategy During High-Volatility Economic News Releases?

Avoid trading during major news volatility. If you have to, widen stop losses, reduce position sizes, or pause trading altogether. Strong risk management protects your account during unpredictable market conditions.

What Percentage of Your Account Should You Risk per Trade?

Risk 1-2% of your account per trade for effective risk management. This maintains your trading psychology balance, preserving capital during drawdown periods and supporting long-term trading success.

Can This Strategy Work on Other Timeframes Like 1-Minute or 15-Minute?

You can adapt this scalping strategy to 1-minute or 15-minute timeframes, but expect different results. The 5-minute chart offers the ideal balance for this specific strategy’s adaptability and effectiveness.

How Do You Handle False Signals When Stochastic and Supertrend Conflict?

When you spot conflicting signals, prioritize SuperTrend as your primary filter. Wait for both indicators to align before entering trades—this indicator confirmation approach dramatically reduces false signal management issues.