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Saturday, April 13, 2024

Forex Trading Guide 2021: Scalping strategy

This strategy works on a five-minute chart of the GBP / USD currency pair. It is noted that the strategy is quite easy to learn and will be able to be done even by those who are just starting their way in forex trading.

At the very beginning, we need to set up the graphic design of the strategy and for this we need the following technical indicators:

1. MACD indicator with the settings of its parameters 5, 8, 9. The closing prices will be used as a data source.

2. Simple moving average calculated over eight periods, from which the closing prices are taken as the data source.

3. Technical indicator “Parabolic” with parameter settings 0.1 and 0.11, for which the instrument price acts as a data source.

4. Technical indicator “Parabolic” with parameter settings 0.1 and 0.11, for which the MACD indicator values ​​act as a data source.

It is recommended to trade this strategy during the most dynamic trading sessions, namely during the American and European trading sessions.

Buy transactions will be carried out under the following conditions:

1. The current price of the instrument shows values ​​above the moving average

2. The price chart and the MACD indicator should show values ​​higher than the Parabolic indicator, which is calculated for them.

3. The MACD indicator should be above the level, which is based on its zero values.

4. It is also necessary to set a stop loss at 20 points.

5. There is no take profit in this strategy. The profit is fixed by gradually moving the stop loss every 20 points. But, in general, you can set a trailing stop at the level of 20 points.

For a short position, the following conditions must be met:

1. The value of the instrument price is below the value of the moving average, which is calculated by it.

2. The values ​​of the price and the values ​​of the MACD indicator are located lower than the values ​​of the Parabolic indicator, which are calculated by them.

3. The MACD indicator shows values ​​less than the zero line

4. Limiting losses and fixing profits is carried out in the same way as when buying.

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