5 Minutes Scalping Strategy for Boom and Crash

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Boom and Crash is slowly becoming one of the most traded forex asset in the World; according to a research by our in-house analysis team, the interest of forex trader in Boom and Crash continues to grow every day. This is because, any trader with a little knowledge of price action can trade and make sustainable income from it. In this article, I am going to share with you my 5 minutes scalping strategy for Boom and Crash.

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5 Minutes Scalping Strategy for Boom and Crash

If you are still struggling to find your footing in the market, this 5 minutes scalping strategy for Boom and Crash will attempt to assist you find some clarity in the market. Please read on, don’t skip anything, If you have any questions or concerns, do well to drop a comment at the end of the article.

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Understanding the Boom and Crash Market

Before looking at the strategy, let’s establish some ground rules. As a rule of thumb, if you want to succeed in any business adventure, you need to read and understand the basics of that business. Most traders are only interested in making fast money from the forex market that they ignore the little things which can help them achieve that.

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The focus of this article is on Crash and Boom; so, you need to know that Crash buy on default with spikes occurring occasionally, while Boom sells on default with spike occurring occasionally. The only way you can succeed in the market is to know the reasons behind every spikes. If you are buying Crash or Selling Boom and you can somehow avoid the spikes and take 2-5 minutes candle each time an opportunity present itself based on your strategy, you can make sustainable income in the forex market.

I have studied and analyze the market for a very long time. I have noticed that spikes occurs mostly at support or resistance zone, then at other key zones in the market to relax the market for a pull back, reversal or consolidation while on a trend.

How do you analyze the market

They are three kinds of traders in the Boom and Crash market;

  • Those who trade the default price movement (buy crash and sell boom)
  • Those who trade the spike (sell crash and buy boom)
  • and Those who trade both

All of these three set of traders analyze and understand the market differently; For instance, for those who are buying crash and selling boom, we have the day traders who place their trade once based on a long term analysis and the scalpers who are only interested in a short term buy on crash and a short term sell on Boom (they scalp the market for 2 minutes, 5 minutes, 30 minutes, etc., depending on their knowledge of the market and their strategy)

The first thing I do every morning before placing any trade is to mark the previous day highs and low in the market, the next thing is to mark the major support and resistance zones, then the last thing is to draw a trend line. We will explain all this in the next sub heading.

The 5 Minutes Strategy for Boom and Crash

What you need

  • Mark daily high and low from previous day on D1
  • Switch to M15 time frame and mark out the major support and resistance zone
  • Switch to M5 and draw a trendline (the trendline must touch at least three support or resistance line depending on the asset you want to analyze)
  • Add Exponential Moving average 48 to your chart.

How to pick a trade

  • On Crash, Once the price is above the 48 EMA on M5 look for buy.
  • On Boom, once the price is below the 48 EMA on M5 look for sell.
  • To be successful, avoid Resistance zones on Crash (for Crash Buying) and Support Zones on Boom (for Boom Selling)
  • Personally, once the price is above the 48 EMA on say C500 on M5 and it’s not close to the resistance zones I marked at the beginning of the market day, I will buy Crash 500 for 5 minutes. Same thing go for Boom sell.
  • If you are caught with a spike, because spikes will always come, don’t panic especially, if you entered when the price was above 48 EMA for Crash Buy and Below 48 EMA for Boom sell and the price was not closer to a major support or Resistance zone or it has not broken any trendline. If it has broken a trend line or your entry did not meet the requirement mentioned above, you can close with a loss.
  • If you have a small equity, use minimal lot size (between 0.04 to 0.10), learn how to modify and edit your lot size. It’s very important

Final Thoughts

This strategy is 91% effective, you can back test it and refine it to suit your trading style.


Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose.

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