1-Minute AUD/CAD Forex Scalping Strategy

In order to scalp the forex market successfully, traders must ensure they’re in possession of a great short-term trading strategy that will aid them determine when short-term price trends are likely to emerge.

The 1-Minute AUD/CAD Forex scalping strategy is composed of 3 popular technical indicators: Heiken Ashi, Ichimoku and Stochastics.

The modified Heiken Ashi helps to spot trends, the Ichimoku generates trend following signals and the Stochastics Oscillator is used to confirm market bias.

Additionally, the AUD/CAD scalping technique can also be deployed for other low spread currency pairs as well.

Chart Setup

MetaTrader 4 Indicators: Heiken_Ashi_Smoothed.ex4 (Inputs Variable Modified; MaPeriod=12, Colors Width Modified; #0=3, #1=3), Alternative_Ichimoku.ex4 (Default Setting), Stochastic Oscillator.ex4 (Parameters Modified; %K period=19, %D period=6, Slowing=9)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute

Recommended Trading Sessions: London, New York, Tokyo

Currency Pairs: AUD/CAD + any other pair

Download

Download the 1-Minute AUD/CAD Forex Scalping Strategy

Buy Trade Example: AUD/CAD (Australian Dollar / Canadian Dollar), M1 Chart

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  • If the Heiken_Ashi_Smoothed custom indicator pops up lime candles fairly below the price bars as shown on Fig. 1.0, the overall market sentiment is said to be bullish, thus a trigger to buy the designated currency pair.
  • If the Alternative_Ichimoku indicator displays a light pink cloud that’s positioned below the candlesticks as seen on Fig. 1.0, bulls are said to be driving price higher as such a signal to go long on the designated currency pair.
  • If the light sea green and red dotted lines of the Stochastic Oscillator Metatrader 4 forex indicator break and hover above the 50.00 horizontal level, as illustrated on Fig. 1.0, the general market sentiment is said to be bullish, thus a trigger to buy the currency pair of interest.

Stop Loss for Buy Entry: Place stop loss below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  • If while a bullish trend is ongoing, the Heiken_Ashi_Smoothed custom indicator popsup a red candle (see Fig. 1.0), it is pointing to diminishing bulls power, therefore a trigger to exit or take profit at once.
  • If the Alternative_Ichimoku custom indicator pops up a light steel blue cloud during the course of a bullish trend, it is a trigger to exit or take profit immediately.
  • If the light sea green line of the Stochastic Oscillator indicator dips below the 50.00 reference level while a bullish trend is running, a bearish reversal is said to be imminent, hence an exit or take profit stance will do.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the Heiken_Ashi_Smoothed custom indicator pops up red candles somewhat above the price bars as depicted on Fig. 1.1, the general market sentiment is said to be bearish, thus a trigger to sell the currency pair of interest.
  • If the Alternative_Ichimoku indicator displays a light steel blue cloud that runs above the candlesticks as exemplified on Fig. 1.1, bears are said to be driving market sentiment, thus a signal to go short on the currency pair of focus.
  • If the light sea green and red dotted lines of the Stochastic Oscillator forex indicator break and hover below the 50.00 horizontal level (refer to Fig. 1.1), the prevalent market sentiment is said to be bearish, thus an alert to sell the forex pair of focus.

Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  • If the Heiken_Ashi_Smoothed custom indicator popsup a lime candle during a bearish signal, a bullish reversal is said to be looming, thus a signal to exit or take profit forthwith.
  • If the Alternative_Ichimoku custom indicator pops up a light pink cloud while a bearish trend is ongoing, it is a trigger to exit or take profit straightaway.
  • If the light sea green line of the Stochastic Oscillator indicator surges above the 50.00 horizontal level while a bearish trend is on course, a bullish reversal is said to be in the cards, hence an exit or take profit stance will suffice.

Sell Trade Example: AUD/CAD (Australian Dollar / Canadian Dollar), M1 Chart

Fig. 1.1

Free Download

Download the 1-Minute AUD/CAD Forex Scalping Strategy

About The Forex Technical Indicators Used

The Heiken_Ashi_Smoothed indicator uses filled candlesticks like bars, either placed above or below the candlesticks to define buy and sell trends.

The Alternative_Ichimoku indicator was designed off the well-known Ichimoku Kinko Hyo indicator and it is used to gauge momentum, in line with likely areas of support and resistance on the forex chart.

The Stochastic Oscillator is a momentum oscillator that is attributed to George Lane.

The indicator is made up of two lines, the %K fast line and the %D slow line, which oscillates between 1 and 100.

Basically, the Stochastic gauges the relationship between an assets closing price and its price range over a specified time period.

Easy Installation

Start using this forex strategy in just 5 minutes. Click here to get started now.

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