We have designed the 1-minute Forex scalping strategy for the CHF/JPY pair for traders who are keen on profiting from short-term up and down moves multiple times during the day’s session.
The strategy is designed to identify strong price spikes, with entry/exit setups being triggered when all applicable rules do align.
It uses the popular Ichimoku Kinko Hyo trend following indicator to identify profitable scalping trade setups on the lower time frames.
Chart Setup
MetaTrader 4 Indicators: Ichimoku Kinko Hyo.ex4 (Tenkan-sen=None, Kijun-sen=None, Chikou Span=None), Moving Average.ex4 (Parameters Modified; Period=16, Style=Blue), Rads_MACD.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: London, New York, Tokyo
Currency Pairs: CHF/JPY + any other low spread pair
Download
Download the 1-Minute Forex Scalping Strategy For CHF/JPY
Buy Trade Example: CHF/JPY (Swiss Franc / Japanese Yen), 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 thistle cloud of the Ichimoku Kinko Hyo Metatrader 4 forex indicator crosses below the blue line of the 16 SMA indicator in a bottom up manner as illustrated on Fig. 1.0, bulls are said to be pushing for higher prices, thus a signal to go long on the selected currency pair.
- If the lime & red histograms of the Rads_MACD custom indicator align above the zero horizontal level as shown on Fig. 1.0, the leading market sentiment is bullish, therefore a buy alert is said to be recommended.
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 the sandy brown cloud of the Ichimoku Kinko Hyo forex indicator runs above the blue 16 SMA indicator line during the course of a bullish trend, price is said to be making a likely bearish reversal, as such an exit or take profit stance is recommended.
- If the Rads_MACD custom indicator pops up a red histogram below the zero horizontal level while a bullish trend is running (see Fig 1.0), bullish momentum is said to be weaning, as such an exit or take profit stance will suffice.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the somewhat sandy brown cloud of the Ichimoku Kinko Hyo forex indicator crosses above the blue line of the 16 SMA indicator in a top downward fashion as exemplified on Fig. 1.1, bears are said to be dragging price lower, thus a trigger to sell the designated fx pair.
- If the red & lime histograms of the Rads_MACD custom indicator align below the zero horizontal level as seen on Fig. 1.1, the prevalent market sentiment is said to be bearish, therefore a sell alert is said to be on the horizon.
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 thistle cloud of the Ichimoku Kinko Hyo forex indicator runs below the blue 16 SMA indicator line while a bearish trend is on course, bears power is said to be diminishing i.e. a trigger to exit or take profit immediately.
- If while a bearish trend is ongoing the Rads_MACD custom indicator pops up a lime histogram above the zero horizontal level (refer to Fig 1.1), more and more bears are said to be leaving the market, as such an exit or take profit stance is advised.
Sell Trade Example: CHF/JPY (Swiss Franc / Japanese Yen), M1 Chart
Fig. 1.1
Free Download
Download the 1-Minute Forex Scalping Strategy For CHF/JPY
About The Forex Technical Indicators Used
The Ichimoku Kinko Hyo indicator is an appropriate technical tool, particularly for newbies who want to understand trend momentum, direction, pinpointing reversals and locating entry levels on the forex chart.
The 16 SMA (Simple Moving Average) is a technical analysis indicator that smoothens out currency pair price data by constantly creating an updated average price over the last 16 periods.
The Rads_MACD is an enhanced Moving Average Convergence Divergence (MACD) indicator that is used in spotting changes in momentum, direction strength and duration of a trend in a currency pair’s price.
Easy Installation
Start using this forex strategy in just 5 minutes. Click here to get started now.