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20 pips Forex Scalping Strategy With Linear Weighted Moving Average

Another dynamic scalping system composed of two moving averages: the 144 period linear weighted moving average and 5 period smoothed moving average.

We make buy and sell decisions based on the crossover of these two moving averages.

An excellent fx strategy for beginners. Let’s begin…

Chart Setup

Indicators: 144 period linear weighted moving average, 5 period Smoothed moving average
Preferred time frame(s): 5 Min charts
Trading sessions: London and US Session
Preferred Currency pairs: EUR/USD, GBP/USD, USD/JPY (medium volatility)

Download

Download the 20 pips Forex Scalping Strategy with Linear Weighted Moving Average for Metatrader 4.

GBP/USD M5 Trading Example

lineair-weighted-forex-scalping-strategy

As you can see in the chart above, it’s really easy to benefit from this strategy. 4 Trading signals: 3 winners for 60 pips and 1 loss for 15 pips (did not reach the 20 pips profit target).

Trading Rules

Buy Rules:

  • The 5 period smoothed moving average crosses up the 144 period linear weighted moving average from below.

Initiate buy trade. Stop-loss: Below the most recent swing low point or 15 pips (whichever comes first).
Price objective: exit for 20 pips.

Sell Rules:

  • The 5 period smoothed moving average crosses down the 144 period linear weighted moving average from above.

Initiate sell trade. Stop-loss: Above the most recent swing high point or 15 pips (whichever comes first).
Price objective: exit for 20 pips.

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