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20 pips Forex Scalping Strategy With Linear Weighted Moving Average

    Another dynamic scalping system composed of two moving averages: the 144 period linear weighted moving average and 5 period smoothed moving average.

    We make buy and sell decisions based on the crossover of these two moving averages.

    An excellent fx strategy for beginners. Let’s begin…

    Chart Setup

    Indicators: 144 period linear weighted moving average, 5 period Smoothed moving average
    Preferred time frame(s): 5 Min charts
    Trading sessions: London and US Session
    Preferred Currency pairs: EUR/USD, GBP/USD, USD/JPY (medium volatility)

    Download

    Download the 20 pips Forex Scalping Strategy with Linear Weighted Moving Average for Metatrader 4.

    GBP/USD M5 Trading Example

    lineair-weighted-forex-scalping-strategy

    As you can see in the chart above, it’s really easy to benefit from this strategy. 4 Trading signals: 3 winners for 60 pips and 1 loss for 15 pips (did not reach the 20 pips profit target).

    Trading Rules

    Buy Rules:

    • The 5 period smoothed moving average crosses up the 144 period linear weighted moving average from below.

    Initiate buy trade. Stop-loss: Below the most recent swing low point or 15 pips (whichever comes first).
    Price objective: exit for 20 pips.

    Sell Rules:

    • The 5 period smoothed moving average crosses down the 144 period linear weighted moving average from above.

    Initiate sell trade. Stop-loss: Above the most recent swing high point or 15 pips (whichever comes first).
    Price objective: exit for 20 pips.