Learn a simple yet profitable scalping strategy in the gold market using two indicators on a 5-minute chart. Enter at the right time using specific conditions and target 1.5 from your risk. Avoid entering on big candles and try this strategy on your own.

Top Scalping Strategy for the Gold Market

Introduction

Many traders aspire to scalp the gold market, but they are not sure how to do it effectively. However, in this article, we will share with you a simple yet profitable scalping strategy that you can use on xa usd 5-minute chart using trading view. With this strategy, even scalpers can boost their trading account with insane profits. This strategy has worked perfectly well in crypto, stock, and forex markets. So, let’s begin.

Indicators

The first indicator that we will use is Trend Magic, and the second indicator is Squeeze Momentum Indicator by Lazy Bear. The chart must be set at five minutes.

Minor Adjustments on the Indicators

On Trend Magic, you should change the atr multiplier from 1 to 2 in the input section. Then, for Squeeze Momentum Indicator, you need to untick the second plot and remove color one and color three by bringing down the opacity to 0%.

Strategy

The main idea of this strategy is to aggressively scalp the market and capture the best point to enter the market. During a trending market, we will use Squeeze Momentum Indicator as our buy and sell signal. We will then use the Trend Magic Indicator as our confirmation whether the signal is valid or not. For a buy signal to be valid, we need to see Trend Magic Indicator color in green. Then, Squeeze Momentum Indicator should give us the first green bar after the gap. When we have these buy signals, we need to look at the price as our confirmation.

The price must be in green, and it must be completely above the Trend Magic Indicator. This means that the price must open and close above the Trend Magic Indicator. When we have all these conditions, we will enter our position at the closing of the candle. Then, we will put our stop loss below the Trend Magic Indicator and target 1.5 from our risk.

Exactly the opposite for a sell signal to be valid. We need to see that Trend Magic Indicator color is red. Then, we must have Squeeze Momentum Indicator give us the first red bar after the gap. When we have these sell signals, we will look at the price as our confirmation. The price must be in red, and it must be completely below the Trend Magic Indicator. This means that the price must open and close below the Trend Magic Indicator. When we have all these conditions, we will enter our position at the closing of the candle. Then, we will put our stop loss above the Trend Magic Indicator and target 1.5 from our risk.

Examples of Signals to Skip

There are a couple of examples that you should not take an entry in. For example, if the candle opens below the Trend Magic Indicator and only closes above it. Not all of our conditions were met, so we will skip this entry. Another example would be a setup where all our conditions were met, but we advise you not to take this entry because of the big size of the candle. This makes the distance for our stop loss becomes bigger, and we will skip the trade on big candles.

Profitability

As you can see, this scalping strategy is profitable and provides many signals for us to enter the market. This will help us boost our account fast, especially when we trade on five-minute time frames. We suggest you try it for yourself.

Conclusion

In conclusion, you can scalp the gold market with a simple yet profitable strategy. We must do minor adjustments to the Trend Magic and Squeeze Momentum Indicators. During a trending market, we will use Squeeze Momentum Indicator as our buy and sell signal. We will then use the Trend Magic Indicator as our confirmation whether the signal is valid or not. We need to follow specific conditions for a buy and sell signal to be valid. Lastly, you should skip entries that do not meet all the conditions.