Forex Scalping Strategy With Stochastic Oscillator
High frequency scalping with the Stochastic trading oscillator. This strategy provides you with several trading opportunities every day. We’re looking for a modest 10 pips price objective. Find the complete trading set up outlined below. Please feel free to experiment with the different settings.
Indicators: Stochastic Oscillator with default settings, Fisher indicator
Preferred time frame(s): 1 min
Trading sessions: Any
Preferred Currency pairs: Low spread pairs (EUR/USD, GBP/USD, USD/JPY, AUD/USD,…) with medium to high volatility.
EUR/USD 1 Min Chart
As shown in the EUR/USD chart above, the strategy provides us with 5 valid buy trading signals in just 2 trading hours during the Asian session. Three trades already closed for the 10 pips each (30 pips total). Two trades remain open until target is reached (or stop hit).
- Fisher indicator green bar
- Stochastic oscillator (5,3,3) reaches 80 level
Execute long trade! Place 10 pip stop loss (or below previous swing low) and exit the trade for 10 pips profit.
- Fisher indicator red bar
- Stochastic oscillator (5,3,3) reaches 20 level
Go short now! Place 10 pip stop loss (or above previous swing high) and exit the trade for 10 pips profit.