The forex scalping rider strategy is made up of the highly popular Relative Strength Index (RSI) and the Laquerre indicator.
We will be using the RSI for trend direction (non-traditional way) and Laquerre for trade entry.
It’s highly recommended to use this strategy on medium to high volatile currency pairs such as the EUR/USD, GBP/USD, EUR/JPY, GBP/JPY and AUD/USD.
Indicators: RSI (14 period), Laguerre with input settings (gamma 0.3)
Preferred time frame(s): 1 min
Trading sessions: EUR, US
Preferred Currency pairs: Medium to high volatile pairs
GBP/USD 1 Min Chart Forex Scalping Rider Example
I use the GBP/USD on the M1 chart to illustrate both long and short trades. As you can see, the strategy gave us 50 pips (minus the spread) on 8 positions in only 3 hours. Click the chart to enlarge.
- Relative Strength Index (RSI) touches the 70 level
- Wait for the Laquerre to cross above 0.15 from below
Execute buy trade with stop below the previous swing low and exit the trade for 10 pips profit.
- Relative Strength Index (RSI) touches the 30 level
- Wait for the Laquerre to cross below 0.75 from above
Execute sell trade with stop below the previous swing high and exit the trade for 10 pips profit.