Forex Scalping Rider Strategy
The forex scalping rider strategy is made up of the highly popular Relative Strength Index (RSI) and the Laquerre indicator. We use 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.