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Forex trading - Simple Scalping Strategy

Updated on May 25, 2011

Simple Easy Forex Scalping Strategy

Here I'll show you a simple strategy to scalp the foreign exchange (forex) market. Do a simple google search for "Forex trading systems" there is a lot of internet marketers and affiliates out there trying to sell forex scalping systems and strategies, even robots! None of them take the time out to show you how to actually do it, they're just trying to sell you some useless ebook or forex bot after hyping you up about making money fast online.


Meta Trader 4 snapshot
Meta Trader 4 snapshot

How Forex Scalping works

Scalping is defined as buying and selling a security over a very short period of time (minutes or seconds) at very low risk. Some brokers who trade your currency frown upon the practice because it works directly against them. Most other brokers however, only provide a gateway to trade on your behalf and benefit from commission. 

Strategy explained

There are 3 major objectives build around this system. Remember, once you have your finished strategy you must be disciplined and stick to it. If you don't, you wont be able to measure up how your'e doing. Never be tempted to make a trade based on what you feel, YOU HAVE TO STICK TO YOUR STRATEGY! The objectives are:

  • Identify trends
  • Make pips
  • Repeat pips

Here is my trading setup, I call it the "Super Simple Scalp" strategy:

  • Trade a 10 minute chart
  • Apply 10 EMA to the close
  • Apply 15 EMA to the close
  • Stocastic 10,3,3
  • RSI 14

I use the Meta Trader 4 Platform. I only enter long in my trades, hoping make as much pips as possible before exiting. You must set a stop loss for yourself depending on how much you're comfortable with. Never ever trade outside your rules!
I place a trade on the following conditions:

  • The 10 EMA crosses above the 15 EMA
  • Stochastic lines are heading up but not overbought
  • RSI is above 50

I exit a trade when:

  • EMA lines cross in the opposite direction

OR

  • RSI crosses back below 50

Go on and try it on a practice account. The Super Simple Scalp works great for me, the settings make me certain that the conditions in the market are right. You can use other indicators but with most strategies, its just a case of predicting a market breakout. Use whatever currency you are comfortable with, I only trade EUR/USD.
Let me know what you think!


Comments

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    • profile image

      boy trader 

      6 years ago

      10 minute????

    • retellect profile imageAUTHOR

      retellect 

      6 years ago from United Kingdom

      sunil, see Boyle's comment above!

    • profile image

      sunil 

      6 years ago

      On mt4 not able to find and customize the chart to 10 min chart ?

    • FOREX NINJA profile image

      FOREX NINJA 

      7 years ago

      Sometimes i like paying games with forex, so most times at night i scalp making almost what could be made in day. that's a good hub doo......

    • profile image

      Boyle 

      7 years ago

      To get 10 min view in MT5 - right click on the Periodicty Toolbar & select Customise, then select 10 min (M10) Insert & Close.

    • TradingStocks profile image

      TradingStocks 

      7 years ago

      Thank you for sharing this system for trading forex with scalping. When you know the rules, you can as you say, practice until you know what you're doing and show that it works.

    • profile image

      abc 

      7 years ago

      unless you have some special codes (but that's only for indicators), otherwise, there's no 10M in MT4.the tf is 1M, 5M, 15M, 1H, etc...

    • traderx profile image

      traderx 

      7 years ago from Las Vegas

      Its always fun to scroll through hubs that others have created, thanks.

    • profile image

      bootykowski 

      8 years ago

      U are using the 10-min-chart in mt4? Did I miss something? i can´t find a 10-min-chart in mt4... How are U doing this? can U explain?

      Thanx a LOT!

    • retellect profile imageAUTHOR

      retellect 

      8 years ago from United Kingdom

      It works for me!

    • prasetio30 profile image

      prasetio30 

      8 years ago from malang-indonesia

      very informative. thanks for share.

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