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1-Minute AUD/USD Forex Scalping Strategy

    The 1-Minute AUD/USD Forex scalping strategy is built on three indicators; one being a trend-following, a momentum oscillator indicator and a trend filter.

    The use of these indicators allows us easily arrive at a more reliable confluence when mapping out the trade setups for bullish and bearish scalping trends.

    The system is able to closely monitor the short-term market trends, while plotting trade alerts in line with the criteria for buy or sell, and also produce exit rules for users.

    The 1-Minute AUD/USD Forex scalping strategy can be traded on diverse currency pairs within the financial markets.

    Chart Setup

    MetaTrader 4 Indicators: Heiken_Ashi_Smoothed.ex4 (Inputs Variable Modified; MaPeriod=15, MaPeriod=6), octopus_1.ex4 (Default Setting), Relative Strength Index.ex4 (Parameters Modified; Period=19)

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

    Recommended Trading Sessions: London, New York, Tokyo

    Currency Pairs: AUD/USD + any other

    Download

    Download the 1-Minute AUD/USD Forex Scalping Strategy

    Buy Trade Example: AUD/USD (Australian Dollar / US 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 lime candle-like bodies of the Heiken_Ashi_Smoothed custom indicator get displayed somewhat below the price bars as shown on Fig. 1.0, the general market sentiment is said to be bullish, thus a trigger to buy the designated forex pair.
    • If the octopus_1 custom indicator displays green vertical bars within its indicator window as seen on Fig. 1.0, bulls are said to be driving price higher, therefore a buy alert is said to be looming.
    • If the dodger blue line of the Relative Strength Index Metatrader 4 forex indicator breaksand runs above the 50.00 horizontal level as depicted on Fig. 1.0, more and more bulls are said to be taking up positions in the market, thus a buy trigger is imminent.

    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 running, the Heiken_Ashi_Smoothed indicator pops up a red candle-like body on the activity chart, a bearish reversal is said to be on the horizon, therefore an exit or take profit will suffice.
    • If the octopus_1 custom indicator pops up a red horizontal bar during the course of a bullish trend, bulls power is said to be diminishing, thus an exit or take profit stance is advised.
    • If the dodger blue line of the Relative Strength Index indicator breaks below the 50.00 reference level (refer to Fig. 1.0), price is said to be making a U-turn, thus a trigger to exit or take profit straightaway.

    Sell Entry Rules

    Enter a sell order if the following holds true:

    • If the red candle-like bodies of the Heiken_Ashi_Smoothed custom indicator get displayed fairly above the price bars as illustrated on Fig. 1.1, the overall market sentiment is said to be bearish, thus a trigger to go short on the selected currency pair.
    • If the octopus_1 custom indicator displays red vertical bars within its indicator window as exemplified on Fig. 1.1, bears are said to be dragging price lower, therefore a sell alert is said to be on the horizon.
    • If the dodger blue line of the Relative Strength Index forex indicator breaks below the 50.00 reference level as painted on Fig. 1.1, bears are said to be diving sentiments, thus a sell alert is apt.

    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 indicator pops up a lime candle-like body on the activity chart during a bearish trend, a bullish reversal is said to be just round the corner, thus a trigger to exit or take straightaway.
    • If the octopus_1 custom indicator pops up a green horizontal bar while a bearish trend is ongoing, bears power is said to be halting, thus an exit or take profit stance is recommended.
    • If the dodger blue line of the Relative Strength Index indicator breaks above the 50.00 horizontal level (checkout Fig. 1.1), a bullish reversal is said to be approaching, thus a trigger to exit or take profit without delay.

    Sell Trade Example: AUD/USD (Australian Dollar / US Dollar), M1 Chart

    Fig. 1.1

    Free Download

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    About The Forex Technical Indicators Used

    The Heiken_Ashi_Smoothed indicator uses filled candle like bars either place above or below price bars to define trends.

    The Octopus_1 is a forex trend indicator that forms bars or histograms within its main window.

    Green bars are indicative of a buy signal, while red bar denotes a sell signal.

    The Octopus_1 can also be deployed for scalping the market and can be used alongside other technical studies like RSI, CCI, and Stochastics.

    The Relative Strength Index is a momentum indicator that gauges the magnitude of recent price changes to determine overbought or oversold conditions in the price of a forex pair.

    Easy Installation

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