The Bollinger Bands Indicator 5 Minute Forex Scalping Strategy is a really simple scalping system which you can use to scalp the forex market when the market is in a trending flat.

What you do here is the you sell when the price touches the upper bollinger bands and you buy when price touches the lower bollinger bands.

For the middle bollinger band, when price touches it, you move your stop loss to break even.

Trading Requirements & Parameters

Timeframe: 5 minutes

Currency Pairs: EURUSD, GBPUSD

Indicator: Bollinger bands (with default settings)

Trading Sessions: trade only duringn London and New York Trading Sessions

Ok, when the bollinger bands indicator, there are 3 lines and each of these 3 lines serve a purpose in this 5 minute scalping system:

the upper bollinger band is is used for selling or taking profit from a buy trade made from the lower band
the lower bollinger band is use for buying or taking profit from a sell trade made from the upper band.
the middle line is actually a 20 simple moving average indicator and you use this for moving your stop loss to breakeven (so now your trade is risk-free).

Buying Rules

Middle bollinger band must be flat or starts getting flat
price then hits the lower bollinger band line later
at the close of the candlestick, you can execute a buy market order or place a buy stop pending order 1 pip above the high of the candlestick.
for stop loss, place it 10 pips outside of the lower bollinger band line
take profit when price hits the upper bollinger band line (do not wait for the candlestick to close, as soon as price hits the upper band line, take your profit as soon as possible)
trade management: when price goes up and hits the middle bollinger band line, move your stop loss to break even (so this becomes a risk-free trade).

Selling Rules

Middle bollinger band must be flat or starts getting flat
wait for when price then hits the upper bollinger band line some time later
at the close of the candlestick, you can execute a sell market order or place a sell stop pending order 1 pip below the low of the candlestick.
for stop loss, place it 10 pips outside of the lower bollinger band line
take profit when price hits the lower bollinger band line (do not wait for the candlestick to close, as soon as price hits the lower band line, take your profit as soon as possible)
trade management: when price goes up and hits the middle bollinger band line, move your stop loss to break even (so this becomes a risk-free trade).

Another Way On How To Trade This Forex Scalping System

when price touches the upper bollinger band line, instead of executing a sell market order or placing a sell stop pending order under just any candlestick’s low, why not wait for one of these bearish forex reversal candlesticks pattern to form? And then use this to place your pending sell stop order.
similarly, but on the opposite, place a pending buy stop order only when you see a bullish reversal candlestick pattern form when price touches the lower bollinger band line.

Disadvantages of The Bollinger Bands 5 Minute Forex Scalping Strategy

As in any forex trading strategies, each trading system has its disadvantages which are largely due the the market conditions, for example, trend trading system will perform poorly in a flat or ranging market.

Here are the disadvantages of this scalping forex trading strategy:

this forex scalping system will tend to perform poorly in a strong trending market.
sometimes when price hits the upper or lower bollinger band lines, it will keep going for a while before reversing
the risk:reward may not be great if the range is between the upper and lower bollinger band line too narrow so it may be advisable to consider this before you place a trade.