Trading the forex market is quite a delicate job, but tools abound in the market that if effectively put to use will ease the entire process.
Scalping is one of such trading style where a trader deploys a very short hold period in the market, while having expectations of spawning small consistent profits on the smaller timeframes.
It is attractive when you look at the whole process, considering the sheer amount of time long/medium term trading requires and the toll it takes on us.
We are offering you a quick intraday trading scalping strategy that solves all that problem and many more.
The 1-Minute Forex Scalping Strategy For GBP/USD is a fast-paced trading strategy that accumulates profits in a timely fashion and capitalizes on the changes in price that is witnessed quite often in the market.
Have it behind the back of your mind that one large loss can wipe out all the gains you’ve made and you’ll want to do everything to ensure this doesn’t happen.
Let’s show you how you can stay safe using our recommended trading setups for this amazing scalping strategy.
MetaTrader4 Indicators: CycleIdentifier.ex4 (Default Setting), 24 EMA, Doda-Donchian.ex4 (Inputs Variable Modified; ChannelPeriod=7, Colors Width Modified; #2=3)
Preferred Time Frame(s): 1-Minute, (Optional: 5-Minute, 15-Minute)
Recommended Trading Sessions: Any
Currency Pairs: GBP/USD and other low spread pairs
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following chart or indicator pattern takes precedence:
- If the magenta line of the 24 EMA indicator crosses the red line of the Doda Donchian in a bottom up fashion, while price is seen to be aligned slightly above the lines (see Fig. 1.0).
- If the lime signal bar pops up below the zero signal level of the Cycle Identifier MT4 indicator, it is a clear indication of an overall bullish sentiment i.e. a trigger to go long on the GBP/USD pair.
Stop Loss for Buy Entry: Place stop loss 2 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 preference:
- If the candlestick opens and closes below both lines (magenta and red lines of the 24 EMA and Doda Donchian indicators respectively), or if these lines intersect during the course of a bullish signal, an exit or take profit is highly recommended.
- If the Cycle Identifier Metatrader 4 custom indicator pops up a red bar that is aligned above the zero signal level, a bearish reversal is said to be forthcoming, hence an exit or take profit will do.
Sell Entry Rules
Enter a sell order if the following holds dominance on the activity chart:
- If the magenta line of the 24 EMA indicator crosses the red line of the Doda Donchian in a top downward manner as illustrated on Fig. 1.1, while price is seen to be aligned marginally below the lines (see Fig. 1.0), go short on the selected forex pair.
- If the red signal bar pops up above the zero signal level of the Cycle Identifier MT4 indicator, it is indicative of an overall bearish sentiment i.e. a trigger to go short on the designated currency pair.
Stop Loss for Sell Entry: Place stop loss 2 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the candlestick opens and closes above both lines (magenta and red lines of the 24 EMA and Doda Donchian indicator respectively), or if these lines intersect while a bearish signal is ongoing, an exit or take profit is highly advised.
- If the Cycle Identifier Metatrader 4 custom indicator pops up a lime bar that is positioned below the zero signal level, a bullish reversal is said to be underway, hence an exit or take profit will suffice.
Sell Trade Example
About The Trading Indicators
There is an added benefit, that you can also use this strategy for 5 minute scalping and also on the 15 minute chart, as the choice of indicators makes it apt.
The CycleIdentifier.ex4 is a custom indicator that is used in gauging cycle tops and bottom as they happen. The indicator is a trademark of Roy Kelly and is copyrighted by Roy Kelly.
The Doda Donchian.ex4 is a custom indicator produced by Gopal Krishan Doda and popularly known as the turtle indicator.
It is a trend following indicator that deploys the EMA (120), coupled with other values to eliminate noise when scanning the market for trend changes
The 24 EMA is an exponential moving average that has its period set at 24 and reduces the lag by adding more weight to recent price.