On small timeframes, entry accuracy is especially important. Too much noise can wear out any deposit. Therefore, it is extremely important to maximize the accuracy of opening positions.
A simple and effective entry strategy is to break through two averages. But on small timeframes, we would like to see a strong and sharp movement. It is after such movements that the price is likely to move further by inertia. For entry, we will take 2 moving averages. Our task is to find a situation when a five-minute bar opens on one side of the averages and closes on the other.
Oddly enough, but this is a very effective filter. In the screenshot above, such situations are marked with arrows. And yes, there are only 2 entries on the entire chart. The channel width is adaptive and is a good test for our bar. And the speed of the breakout means the complete destruction of the bears' resistance.
Look at some more examples. A sharp breakout of the channel is a really strong signal.
You can use different combinations of moving averages.
For convenience, we have added this entry strategy to our free Moving Average Cross Signal indicator: https://www.mql5.com/en/market/product/148478
Here are the parameters we used in the first two screenshots:
Take care of your deposit, filter your entries! When the time comes for a really good deal, the saved funds will help you be fully armed.
Good luck and big profits!
