GETTING STARTED
This is a forex scalping strategy that is primarily used for the 1 minute charts, but can be used effectively on the 3 or 5 minute charts as well. Be sure to try out different time frames for each pair to see which one works the best for that individual pair. The strategy itself is quite simple and only consists of 2 indicators. Those indicators include:
- Simple 70 Period Moving Average (closed)
- Stochastic indicator K=14 D=3 Smooth= 3 (14, 3, 3) Levels=
80/20 Refer to the picture above to see what your chart should look like
How to Trade
This strategy is very easy to use and only requires a few rules to follow.
- Use the 70 Moving Average to determine whether price is in a UP Trend or DOWN Trend. If the 70 Moving Average is below price, price is in an Up Trend. If the 70 Moving Average is above price, price is in a Down Trend.
- If price is in an Up trend, we are looking for the stochastic indicator to cross the 20 Level. If Price is in a Down trend, we are looking for the stochastic indicator to cross the 80 Level.
- Once the stochastic indicator crosses either of these levels we make a buy or a sell. (Up Trend+Cross at 20 Level = BUY) (Down Trend + Cross at 80 Level = SELL)
Here are some examples below:
Price is in an Up Trend and the stochastic indicator crosses the 20 level so we make a buy at the candle indicated by the green arrow.
Price is in a Down Trend and the stochastic indicator crosses the 80 level so we make a sell at the candle indicated by the red arrow.
This concludes the 1 minute Forex Scalping Strategy
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☺ Happy Trading ☺
