5
minute scalping with Overbought and Oversold is a momentum trading
system based on Bollinger Bands and Relative Strength Index

Strategy
Setup

Indicators:

Bollinger
Bands: Period 25, Standard Deviation 2.0

RSI:
14 periods, with MA 11 periods

Time
Frame: 5-minute chart or higher.

Trading
Sessions: Berlin

Currency
Pairs: EURUSD, EURGBP, AUDNZD.

Entry
Conditions

Buy

Price
Action: The price must close outside the lower Bollinger Band.

RSI
Condition: The RSI must be below 30.

Sell

Price
Action: The price must close outside the upper Bollinger Band.

RSI
Condition: The RSI must be above 70.

Exit
Conditions

Stop
Loss

Set
the stop loss at 5 pips or at the upper/lower Bollinger Bands, which
ever is closer.

Profit
Target

Set
the profit target at 3-4 pips or at the middle Bollinger Band,
whichever is reached first.

Additional
Rules

Avoid
Trading Before Major News Releases:

Refrain
from entering trades shortly before significant economic
announcements, as they can cause unpredictable market movements.

Trend
Confirmation

Downtrend:
Do not enter a buy position until the price has penetrated the center
line of the Bollinger Bands upwards, indicating the potential end of
the downtrend.

Uptrend:
Do not enter a sell position until the price has penetrated the
center line of the Bollinger Bands downwards, indicating the
potential end of the uptrend.

Example
Strategy Implementation

Identify
Trading Sessions:

Ensure
you are trading within the specified time frames (2am-5am, 8am-12pm,
7:30pm-10pm EST).

Monitor
Bollinger Bands and RSI:

Set
up Bollinger Bands with a period of 25 and a standard deviation of
2.0.

Set
up the RSI with a period of 14 and a moving average of 11 periods.

Look
for Buy Signals:

If
the price closes outside the lower Bollinger Band and the RSI is
below 30, prepare to enter a buy position.

Set
your stop loss at 5 pips or at the lower Bollinger Band.

Set
your profit target at 3-4 pips or at the middle Bollinger Band.

Look
for Sell Signals:

If
the price closes outside the upper Bollinger Band and the RSI is
above 70, prepare to enter a sell position.

Set
your stop loss at 5 pips or at the upper Bollinger Band.

Set
your profit target at 3-4 pips or at the middle Bollinger Band.

Trend
Confirmation:

In
a strong downtrend, wait for the price to penetrate the center
line of the Bollinger Bands upwards before entering a buy position.

In
a strong uptrend, wait for the price to penetrate the center
line of the Bollinger Bands downwards before entering a sell
position.