The Forex scalping strategy is one of many on the market that involves speculation in intraday operations. The peculiarity of scalping is to immediately close the deal as soon as it starts to bring a small profit. Such transactions are made very quickly. The time period from opening to closing may be less than a second.
There are several conditions that are necessary to implement a scalping strategy. First, a traded financial instrument must be highly liquid. Secondly, brokerage and exchange fees should be small so that the profit from the transaction could cover them. A small spread, moderate volatility is also needed. The trader should also be given the opportunity to monitor current quotes constantly. The article describes the profitable Forex scalping strategies.
Magic stream
This is one of the most profitable Forex scalping strategies. It involves the development of a forecast of future trends. The disadvantage is that such a strategy is based on stable trends, and those are much less common than a flat, which involves price fluctuations.
Using this strategy, you can trade in any market phase at any time. The timeframe for this strategy is M5. For trading, it is recommended to use the Alpari company as a broker. Also, you should not do more than two transactions on one instrument.
You should not expect a large number of signals from this strategy. This is due to the fact that the data of all parameters coincide. Of course, some indicators may not be taken into account, but in such cases this will affect the accuracy of the signals.
There are several conditions that must be observed when opening a transaction. Firstly, the price of the instrument should be higher than the TK indicator. Secondly, the momentum line should be below zero. Also, do not forget that the operation can be performed only after the first candle is closed above the TK. Up to this point, the signal is not valid. The rules for closing a deal are identical to the rules for buying an instrument.
"Sniper"
This Forex scalping trading strategy takes into account the changing market situation at short intervals. Previously, this strategy could only be used for money, but several years ago it became available for free. Sniper is not very suitable for beginners in the Forex market, but novice traders can still find a lot of useful information in it. To use this strategy as efficiently as possible, you must first determine the levels for operations with financial instruments. There are 5 levels in total:
- total impulse;
- impulse;
- consolidation zone;
- day close level;
- level of sharp change in trend.
The first level is support / resistance. To find it, one must consider the interval H1. The pulse level is formed when the pair forms a zone that it is not able to break through. This is where the flat will be.
The consolidation zone is a part of the internal flat of no more than eighteen points. The closing level is based on the price at which the transaction was closed on the previous day. After the auction ends, this level is deleted and a new one is created.
As is the case with MagicStream, trading according to the Sniper strategy is conducted on the M5. The best broker is Forex4You. The peculiarity of this Forex scalping strategy for beginners is that they should only trade in the consolidation zone.
Pipsing on stochastics
Many traders consider this scalping strategy at Forex the best in 2016. Its feature is the use of only one indicator.They are Stochastic. This approach involves trading EUR / USD and GBU / USD, i.e. The two most popular currency pairs. It is the high popularity of currencies along with low spreads that have become the main reason for the popularity of this scalping strategy at Forex.
The strategy on the M5 timeframe is applied. Particular attention should be paid to customization. The signal line period should be set to 10, and the stochastic period should be set to 7. Also, smoothing should be set to make it easier to notice the intersection. The difference between “pipsing on stochastics” and many other strategies is also in setting the value of the levels to 30 and 70, while the standard sets 20 and 80.
Trading starts at the moment when the stochastic crosses the signal line from the bottom up. In most cases, this occurs near the thirtieth level. A deal must be closed when the intersection is made from top to bottom (usually near level 70).
“Simple scalping strategy”
Two companies should be used as brokers for trading: Alpari, Forex4You. The availability of four timeframes greatly helps traders. They provide an opportunity to accurately determine the direction of the trend.
First you need to open four windows for the same financial instrument. The time intervals must be set as follows:
- M5 - in the first window.
- M15 - in the second window.
- M30 - for the third chart.
- H1 - in the fourth window.
To make it convenient to observe each of the four graphs, you should arrange them with a mosaic. This will make it possible to display all four windows simultaneously.
On each of the 4 charts, you need to evaluate the last candles. A transaction can be opened if the opening price exceeds the closing price. Consequently, the transaction is closed if the closing price is higher than the opening price.
HeiQELA M1
HeiQELA M1 is one of the best Forex scalping strategies. Lovers of bargaining use it during the second session. The downside of the European session is a small number of transactions. You can close 2-5 operations per day.
HeiQELA M1 is not one of the most profitable strategies, but it is considered one of the most effective. Daily profit can be up to 10 points. However, if a trader spends a large amount of time at the monitor for a month, then after 4 weeks he will be able to get about 200 points of profit, which is a very good result. Currency of trade is EUR / USD.
Forex scalping strategy indicators for HeiQELA M1 are as follows:
- Laguerre (gamma - 0.8, CB - 50,000).
- Heiken Ashi 2.
- QQE Alert MTF v. 5.
A tool is purchased when the Heiken Ashi 2 turns blue, the main QQE Alert MTF v.5 line breaks the signal line from the bottom up, and the Laguerre line leaves the oversold zone, but does not reach overbought conditions.
When Heiken Ashi 2 turned red, QQE Alert MTF v.5 broke through the signal line from top to bottom, and Laguerre is between the oversold and overbought zones, having left the second one, it is necessary to close and sell the asset.
"Victory"
The scalping strategy at Forex for M1 is popular among novice traders. Recommended dealing centers are Alpari and TradeFort. Entrance to the purchase when using the “victory” as a scalping strategy on Forex is carried out at the moment when the following conditions are met:
- sliding on M1 is either in a horizontal position, or the parameter is directed upwards;
- asset value reached the bottom line of TMA and turned around;
- the width of the sliding is at least 10 points;
- the dollar is weaker than the euro;
- “Stop loss” is 15, “take profit” is 5;
- the price of the M5 is not located in the upper line of the triangular moving.
To enter the sale in the scalping strategy at Forex “victory”, several conditions must also be met:
- sliding on M1 is either horizontal or looks down;
- the price turned around from the top line of the TMA;
- the width of the sliding is at least 10 points;
- the strength of the dollar is greater than or equal to the strength of the euro;
- the take profit parameter should have a value of 5, and the stop loss should be 15;
- the price of the M5 is not located at the bottom of the TMA.
5M EUR / USD
This 5M EUR / USD system is considered a profitable and easy scalping strategy at Forex. As the name of the system shows, trading is carried out in US dollars and euros.
Before buying a financial instrument, three conditions must be met. First, the price should break through the BB line from below and go half the distance to the blue line. Secondly, the RSI should be at the level of 70 or higher. Thirdly, the stochastic should be located at least level 80 and be turned down.
In order to sell the currency, you must fulfill the opposite conditions. This means that the RSI should be below level 30, and the stochastic should not be above level 80, that is, the blue line should cross the red line from bottom to top. The last condition is that the price line crossed above the BB line and is located between the blue and yellow lines.
Both transactions (both purchase and sale of an asset) are closed at the moment when the price reaches the red line in the center. This line is common to three pairs of Bollinger Bands. It is also necessary to mention the absence of stop orders. If the position has already been opened, and the price has continued to move in the opposite direction, then you should open the order in the same direction when the value of the financial instrument will be in the center, between the blue and red lines.
Ninpostar
Many traders claim that this is the most accurate Forex scalping strategy. With stop orders that will not exceed 10 points, the profit of the trader can be about 80 points per transaction.
This strategy employs two proven, most effective and familiar indicators for each trader:
- Laguerre.
- QQE.
These tools make it possible to conduct a very accurate analysis and make a forecast of the trend of the currency instrument. For a long period of time, these tools were not so popular and were practically not used in scalping strategies.
The advantage of this strategy is its versatility. With Ninpostar, trading can even be carried out on 10 financial instruments. The strategy is based on three indicators that allow scalping profits during the European session. Other sessions are not recommended.
The system uses minute charts. Stop orders should be set at the nearest minimum and maximum, taking into account the spread for the pair. Traditionally, a stop order does not exceed 10 points. This fact has become the main reason for the popularity of this strategy among those traders who do not like risk trading and prefer to make a large number of transactions during the day.
Kevinator retracement
This is another scalping strategy for Forex, which is classified as conservative. It is based on a popular rollback price system among English-speaking traders. Trading is carried out on the time interval M5 in the following currency pairs:
- Euro / American dollar.
- Pound Sterling / American Dollar.
- American dollar / franc.
- American dollar / Canadian dollar.
The following indicators are used in the implementation of the Kevinator Retracement strategy:
- MTF Stoch 4TFx4.
- Retracement Finder.
When the yellow line goes up, it means an uptrend. A bar appears on the Retracement Finder that signals this. A short position should be opened when the signal candle on the chart closes. You also need to make sure that the signals do not change.
There are two ways to close a position. The first involves installing a fixed TakeProfit. The parameter value must be in the range from 10 to 40 points. Its value is affected by the currency. The higher the volatility, the higher the value of the parameter should be set. In addition to the currency of the pair, the trader’s personal preferences also affect the take profit value.
According to the second option, the position is closed at the current price.This happens at the moment when a bar appears on the Retracement Finder, signaling that, possibly, there will be a change in the movement of the value of the financial instrument.
"Hell's Angels"
This is another interesting Forex trading strategy. Initially, the system was used by foreign traders, but over time it was translated into Russian, having undergone some changes. Any suitable currencies can be taken for trading, and the timeframe should be in the range from M1 to M15.
At the moment when the candle with the red body and tail closes, it is necessary to open a short position. The long one opens after the green candle closes.
When the color of the candle begins to change, it is necessary to close the position. Also, a trader can set a take profit. The value of the parameter can range from 10 to 30 points, depending on the selected time interval and the volatility of the currency pair. If we talk about the “stop loss” parameter, its value also varies. Depending on the selected time interval, the trader can set the value of the parameter from 5 to 15.
Conclusion
Scalping strategies for Forex are very popular and effective. Many of them were borrowed from foreign traders, and some were created by domestic amateurs to trade on Forex. They are to close the deal as soon as the trader gets the benefit. This has led to the prevalence of such strategies. The ability to make a profit, albeit a little (no more than 20 points), made scalping very popular among newcomers to the Forex.
It should also be remembered that not every broker provides the opportunity to carry out a full scalping, when decisions are made within a few seconds. The most suitable trading platforms where scalping strategies can be successfully applied are Forex4You and Alpari.