Simple Scalping Strategy That Works :-)
#OPINIONLEADER# If you are looking for a simple trading strategy that works, look no further. Let's jump right in, here are the settings and what to look for:
Trade between 09:00AM and 15:00PM Berlin/Paris time.
Select 5M or 15M.
Use Japanese Candlesticks.
Add either (50EMA and 200EMA) or (25EMA and 200EMA) but I would choose 13EMA and 200EMA.
Add Fractal points.
Best to add a MACD & RSI, with my settings - DM me for details.
***please see attached pictures which will clarify a trade***
Wait for the 13EMA to cross the 200EMA
Wait for the fractal to appear
Draw a horizontal line using the fractal bar,
If the 13EMA is over the 200EMA, we use the fractals bars OPEN or CLOSE which ever is the higher price. Most of the time this will be a bull bar, we use the CLOSE price. NOT the HIGH of the bar.
If the 13EMA is under the 200EMA, we use the fractals bars OPEN or CLOSE which ever is the lower price. Most of the time this will be a bear bar, we use the CLOSE price. NOT the LOW of the bar.
(Hope this makes sense, if not DM me or have a look at the picture)
We then enter on the break of this horizontal line. As a rule I use the horizontal price and then one PIP higher or lower for entry. E.g. Horizontal line is 1.45273 then one pip higher would be 1.4528, if it is a sell trade then as an e.g 1.45898 then on 1.4588.
Always look for candle number 4 or a later candle to break this horizontal line. Counting Fractal candle, candle 1, candle 2, candle 3 then only we look for an entry on candle number 4 or one that follows this candle.
Taking Profit. On standard FX pairs I would look for 10 #Pip# profit. On gold and exotic pairs I will look for 100c or about 100 Pips. Can always lock in profits using your stop loss or trailing the profit.
Stop Loss. A 1 to 1 risk:reward is probably good. But have a look, use the bottom of the fractal candle provided, if it is not to small. Decide what your money management style is and use that.
(BULL/BUY) On the below pictures you will see the black horizontal line drawn on the CLOSE of the fractal bars with a purple oval
The cross of the 13 200 with a blue circle.
The entry with the yellow circle
(BEAR/SELL) On the below pictures you will see the black horizontal line drawn on the CLOSE of the fractal bars with a blue oval
The cross of the 13 200 with a yellow circle.
The entry with the purple circle
Enjoy and use your own judgement and money management skills.
Practice on a DEMO if you are unsure or new to FX/trading and please let me know how it goes.
This is a very simple system but very effective. You can make 10/30/50/75 pips per day depending on how many trades you can squeeze in per day. Its also a very effective way to learn trends, breakouts and entry, closing of a trade. Later on you can learn price action and bar formations/patterns. Then make an even better more effective system. Only down side is you might spend hours infront of the computer.
Edited 15 Jun 2021, 19:37
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