If you are looking for a forex scalping system, then try this: The 5 Minute Forex Scalping Strategy Using Parabolic SAR And 200 EMA and the De Munyuk Indicator is one easy forex scalping system to use as the rules are really simple to follow.

Trading Requirements

You need the following:

• Parabolic SAR Indicator (on the settings, make the steps to 0.02 step)
• 200 exponential moving average indicator  applied to the close.
• de-munyuk indicator mt4
• timeframe: 5 minute

Currency Pairs To Trade: Low spread currency pairs would be preferable, like AUDUSD, EURUSD, GBPUSD, USDJPY, USDCHF

You also want to make sure that you are trading during the most active trading session during the day. So avoid trading during Asian Trading Session and focus on looking for trading opportunities only during the London and New Your Forex Trading Session.

The Purpose Of The 3 Indicators

There are three mt4 forex indicators used in this scalping system. The fact is they are all trend indicators but in here, each plays a different role:

1: The 200 exponential moving average Indicator

This is for trend identification only.

If prices are above it, it means the trend is up so you only look for buy trade setups.

If prices are below it, it means the trend is down so you only look for sell trade setups.

2: The Parabolic SAR Indicator

On this occasion, even though it can be used for trend identification: when dots appear above price, it indicates a downtrend and when dots appear below price, it indicates and uptrend.

But its real purpose here is for the placement of stop loss.

Where the Parabolic SAR dots form, that’s where you will place your stop loss.

3: The De-Munyuk Indicator

This  is also a trend indicator. This indicator is the one you actually look to buy or sell when all the other conditions are satisfied.

Buying Rules

1. Make sure that price is travelling above the 200 ema indicator which indicates the trend is up.
2. Check to see that the Parabolic SAR indicator dots appear below the price which also indicate that the trend is up.
3. !De_Munyuk indicator must be green or flips from red to green
4. Buy at market price or place a pending buy stop order 1 pips above that high of the  candlestick after it closes.
5. Place stop loss 1 pip below the Parabolic SAR Dot.
6. For Take Profit, aim for 15 pips profit.

Selling Rules

1. Make sure price is travelling below the 200 ema  indicator which indicates that the trend is down
2. And also make sure that the Parabolic SAR dots appear above the price which also indicate that the trend is down.
3. !De_Munyuk indicator must be red or flips from green to red
4. sell at market or place a pending sell stop order 1 pip below the low of the candlestick after it closes.
5. Place stop loss 1 pip above the Parabolic SAR Dot.
6. Aim for 15 pips profit target.

Disadvantages of The 5 Minute Forex Scalping Strategy Using 200 EMA And Parabolic SAR Indicators

• all the 3 indicators used in this scalping system are lagging indicators which means that every time you take a trade, you are effectively late. Price would have done its move and you enter a trade late.
• this is a trend trading system so that means that if you encounter ranging market, you will get false signals. Ranging market can be seen when the 200 ema ling is going relatively flat. But when the 200 ema line angle is increasing, that indicates a good trending market.

Advantages of The 5 Minute Forex Scalping Strategy Using 200 EMA And Parabolic SAR Indicators

• in a good trending market, this forex scalping system has the potential to perform really well.
• having  a larger ema like 200ema also ensures that you only trade based on the main trend in that timeframe