The 1-Minute Forex Scalping strategy for GBP/JPY is a trading strategy that allows the accrual of profit over time via the buildup of consistent smaller gains via scalping off the 1-minute chart.
Nevertheless, it is critical for you to understand risk management, considering the need for frequent analysis and the placement of multiple orders when scalping.
Furthermore, the trade setup that’s being put to use within this strategy takes advantage of the unique set of indicators to quickly predict where the market is heading.
Chart Setup
MetaTrader4 Indicators: i-AMMA.ex4 (Inputs Variable Modified; MA_Period=16), I_XO_A_H.ex4 (Inputs Variable Modified; BoxSize=30)
Preferred Time Frame(s): 1-Minute (optional: 5-Minute)
Recommended Trading Sessions: London, New York
Currency Pairs: Any pair
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Download the 1-Minute Forex Scalping Strategy For GBP/JPY
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the price bar opens and closes above the gold colored line of the i-AMMA custom MT4 indicator as depicted on Fig. 1.0, price is said to be pushed to the upside, therefore we’ll recommend you initiate a long position on the currency pair of interest (GBP/JPY).
- If the green vertical bars of the I_XO_A_H custom Metatrader 4 forex indicator gets aligned above the 0.00 signal level, it is a trigger to go bullish on the GBP/JPY fx pair.
Stop Loss for Buy Entry: Place stop loss 2-5 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If while a bullish trend is ongoing, the candlestick closes below the gold line of the i-AMMA indicator as illustrated on Fig. 1.0, bulls power is said to be halting, as such an exit or take profit will suffice.
- If while a bullish trend is continuing, the I_XO_A_H indicator readjust to form a red vertical bar that is positioned below the zero center line, it is a trigger to exit or take profit at once.
Sell Entry Rules
- If price bar opens and closes below the gold line of the i-AMMA indicator as exemplified on Fig. 1.1, price is said to be driven lower i.e. a trigger to go short on the GBP/JPY currency pair.
- If the red vertical bars of the I_XO_A_H custom Metatrader 4 forex indicator gets positioned below the 0.00 signal line (see Fig. 1.1), bears are said to be in control of the market, hence a sell will do.
Stop Loss for Sell Entry: Place stop loss 2-5 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If during a bearish trend the candlestick closes above the gold line of the i-AMMA indicator as shown on Fig. 1.1, more bears are said to be exiting the market, therefore an exit or take profit on open positions will do.
- If while a bearish trend is running, the I_XO_A_H indicator readjust to form a green vertical bar that sits above the zero signal level, it is a signal to exit or take profit forthwith.
Sell Trade Example
Fig. 1.1
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Download the 1-Minute Forex Scalping Strategy For GBP/JPY
About The Trading Indicators
The i-AMMA.ex4 technical indicator is a 25-day Average Modified Moving Average that is used to filter price action.
The I_XO_A_H.ex4 custom indicator has a dedicated indicator window that references the zero center line and uses green and red vertical strokes to deliver buy and sell alert respectively.