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5Min - Moving Average Crossover strategy

Here’s a detailed 5-minute moving average crossover strategy for Forex trading, using EUR/USD as an example. I’ve generated simulated 5-minute data to demonstrate the setup with charts and signals.

Strategy Rules

  1. Indicators

    • Fast MA (5-period) → reacts quickly to price changes.
    • Slow MA (20-period) → smooths out noise and defines the trend.

  2. Entry Rules

    • Buy (Long Entry): When the fast MA crosses above the slow MA.
    • Sell (Short Entry): When the fast MA crosses below the slow MA.

  3. Exit Rules

    • Stop Loss (SL): ~15 pips away from entry.
    • Take Profit (TP): ~30 pips away from entry (2:1 reward-to-risk ratio).
    • Optional: Exit when an opposite crossover occurs.

 

Example Trade Signals (EUR/USD, simulated 5-min data)

Time

Close Price

MA_Fast

MA_Slow

Signal

2023-01-01 04:55:00

1.04536

1.04502

1.04501

Buy

2023-01-01 05:20:00

1.04428

1.04456

1.04469

Sell

2023-01-01 05:40:00

1.04561

1.04504

1.04476

Buy

2023-01-01 06:45:00

1.04512

1.04543

1.04544

Sell

2023-01-01 07:40:00

1.04574

1.04566

1.04564

Buy

Chart Example

The chart shows:

  • EUR/USD closing price (candles/line).

  • 5-period MA (blue) and 20-period MA (orange).

  • Green arrows = Buy signals, Red arrows = Sell signals.

You can clearly see where crossovers occur, generating trade opportunities.

Key Notes

  • Works best in trending markets (avoid sideways chop).

  • Use risk management: no more than 1–2% account risk per trade.

  • Can be combined with other filters (RSI, support/resistance, session times).

  • SL/TP can be adjusted depending on volatility (e.g., ATR-based).

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