The 1-minute Forex scalping strategy for the EUR/GBP currency pair is an intriguing scalping system that deploys a crossover technique in defining accurate buy and sell market conditions.
It uses a basic approach that makes it flexible enough to be adopted by both newbies and professionals.
This scalping system can spot developing trends and their turning points in the market easily.
With this in view, it becomes quite easy to turn this strategy into a real profit spinner.
Chart Setup
MetaTrader 4 Indicators: ForexLine_update_03.ex4 (Colors Modified; #5=Magenta), Moving Average.ex4 (Parameters Modified; Period=50, Style=Lime), SMI.ex4 (Period_Q=8, Period_R=12, Period_S=11)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: London, New York, Tokyo
Currency Pairs: EUR/GBP + major currency pairs
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Download the 1-Minute Forex Scalping Strategy For EUR/GBP
Buy Trade Example: EUR/GBP (EURO / Great British Pound), 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 50 SMA Metatrader 4 indicator line crosses below the dual colored (blue & magenta) ForexLine_update_03 indicator line in a bottom up fashion as seen on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to go long on the designated currency pair.
- If the red line of the SMI custom indicator breaksand hovers above the 0.00 reference level as demonstrated on Fig. 1.0, bulls are said to be pushing for higher prices, therefore a buy signal will suffice.
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 lime 50 SMA indicator line intersects the dual colored (blue & magenta) ForexLine_update_03 indicator line while a bullish trend is ongoing, price is said to be making a likely U-turn, thus an exit or take profit stance will suffice.
- If the red line of the SMI indicator falls below the zero horizontal level while a bullish trend is running (see Fig. 1.0), bulls are said to be leaving the market in their droves, as such an exit or take profit stance is recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the lime 50 SMA forex indicator line crosses above the dual colored (blue & magenta) ForexLine_update_03 indicator line in a top downward manner as illustrated on Fig. 1.1, market is said to favor bearish sentiments, thus a sell alert will do.
- If the red line of the SMI custom indicator dipsand runs below the 0.00 horizontal level as shown on Fig. 1.1, the overall market sentiment is said to be bearish, therefore a sell alert is duly recommended.
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 lime 50 SMA indicator line intersects the dual colored (blue & magenta) line during the course of a bearish trend, a bullish reversal is said to be imminent, as such an exit or take profit stance is advised.
- If the red line of the SMI indicator surges above the 0.00 reference level while a bearish trend is on course (refer to Fig. 1.1), more and more bears are said to be closing their market orders i.e. a trigger to exit or take profit at once.
Sell Trade Example: EUR/GBP (EURO / Great British Pound), M1 Chart
Fig. 1.1
Free Download
Download the 1-Minute Forex Scalping Strategy For EUR/GBP
About The Forex Technical Indicators Used
The ForexLine_update_03 is a trend following line indicator that has a color altering scheme based on the prevalent market trend i.e. blue for bulls and magenta for bears.
The 50 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 50 periods.
The SMI, also known as the Stochastic Momentum, and is a custom indicator that computes two lines on the chart, the SMI data line and the SMI indicator line.
Easy Installation
Start using this forex strategy in just 5 minutes. Click here to get started now.