Scalping is a well-known forex trading strategy that does well during high market volatility sessions and such conditions are known to yield vast openings for scalping profits.
This can mean that the scalper is able to generate between 5 and 15 pips for every position initiated.
Repeating this feat successfully through the course of trading is pivotal for any scalping strategy.
Scalping signals must be clear and precise, else scalpers will record series of negatives that can lead to serious trading losses. No one wants to experience this.
The 1-Minute Forex Scalping Strategy For USD/JPY is built to run on a very small time frame in order to take small profits repeatedly.
Looking at the system, one is in no doubt of its ability to fit into an effective scalping strategy.
Chart Setup
MetaTrader4 Indicators: AMA_for_Expert2.ex4 (Default Setting), 36 EMA.ex4, ADXdon.ex4 (Inputs Variable Modified; ADXPeriod=28)
Preferred Time Frame(s): 1-Minute, 5-Minute
Recommended Trading Sessions: London, New York, Tokyo
Currency Pairs: USD/JPY | Any pair
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Download the 1-Minute Forex Scalping Strategy For USD/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 red line of the ADXdon Metatrader 4 forex indicator break and stay above the 20.00 signal level (see Fig. 1.0), price is said to be pushed to the upside, hence a signal to buy the designated currency pair.
- If the red 36 EMA line crosses the lime AMA_for_Expert2 Metatrader 4 forex indicator in a bottom up manner (refer to Fig. 1.0), while price bars are trading somewhat above the lines, a buy trigger is said to be in place.
Stop Loss for Buy Entry: Place stop loss 1-3 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 the red line of the ADXdon custom indicator break below the 20.00 signal level as depicted on Fig. 1.0 during a bullish signal, it is a trigger to exit or take profit at once.
- If the red 36 EMA indicator line intersects the lime AMA_for_Expert2 indicator line during a buy signal, it is indicative of weaning bullish pressures, as such an exit or take profit will do.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the red line of the ADXdon custom indicator dip below the 20.00 signal level as illustrated on Fig. 1.1, price is said to be pushed to the downside, hence a trigger to go short on the USD/JPY pair.
- If the red 36 EMA line crosses the lime AMA_for_Expert2 indicator line in a top downward fashion as shown on Fig. 1.1, while price bars are seen running slightly below the lines, a sell trigger is said to be in place.
Stop Loss for Sell Entry: Place stop loss 1-3 pips above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the red line of the ADXdon custom indicator surge above the 20.00 level as seen on Fig. 1.1 while a bullish trend is running, it is a trigger to exit or take profit immediately.
- If the red 36 EMA indicator line intersects the lime AMA_for_Expert2 indicator line while a sell alert is running, it is indicative of halting bearish pressures, as such an exit or take profit will suffice.
Sell Trade Example
Fig. 1.1
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Download the 1-Minute Forex Scalping Strategy For USD/JPY
About The Trading Indicators
The AMA_for_Expert2.ex4 is an enhanced version of the Adaptive Moving Average (AMA) and does take into account the volatility ratio.
The line of the indicator smoothens out greatly to yield a slower average, which invariably should produce more consistent result during price consolidation or sideways market.
The ADXdon.ex4 custom indicator is an enhanced version of the ADX indicator and it aids market participants’ trade in the direction of a strong trend, thus ramping up the potential for profits.
Generally, the ADXdon is used to determine when price is in a strong trend.
The 36 EMA is an exponential moving average that has its period set at 36 and reduces the lag by adding more weight to recent price.