Forex for a trader
Best forex pairs for 15 minute stochastic scalping

Best forex pairs for 15 minute stochastic scalping15 Min Forex Day Trading Strategy. This day trading strategy works great on the 15 min charts. The strategy is composed of 3 trend indicators: 1 long-term indicator (200EMA) for overall trend direction and 2 short-term indicators (buzzer, octopus_2) for laser-sharp entries in the overall trend direction. Please feel free to experiment with other time frames as well. Chart Setup. Indicators: 200 Exponential moving average, buzzer, octopus_2 Preferred time frame(s): 15 minutes chart Trading sessions: London and New York Best currency pairs: any. Download. Example: EURUSD 15 Minute Chart. As shown in the EURUSD chart above, this short-term fx strategy provided us with 2 profitable sell signals in the downtrend (price below the 200EMA). Both trades were closed at risk-to-reward 1:2. Trading Rules. Price above the 200 EMA (bullish trend direction) Octopus_2 histogram paints green colored bar(s) Buzzer indicator changes color from red to green. ==> Open buy position at the open of the next bar. Stop-Loss: Place a protective stop-loss 1-2 pips below the most recent swing low point. Price Objective: Exit the buy trade at risk-to-reward 1:2 (i. e. risking 25 pips to make 50). Alternatively, exit the long trade when the Octopus_2 indicator changes color from green to red. Price below the 200 EMA (bearish trend direction) Octopus_2 histogram paints red colored bar(s) Buzzer indicator changes color from green to red. ==> Open sell position at the open of the next bar. Stop-Loss: Place a protective stop-loss 1-2 pips above the most recent swing high point. Price Objective: Exit the buy trade at risk-to-reward 1:2 (i. e. risking 40 pips to make 80). Alternatively, exit the short trade when the Octopus_2 indicator changes color from red to green. Forex Scalping Strategy With MACD And Stochastic Indicator. This scalping strategy works with the 1-minute time frame.

It’s quite simple to understand and is composed of the Stochastic indicator and MACD. Scalping Setup. Indicators: Stochastic with settings: (5,3,3) and MACD with settings: (13,26,9) Preferred time frame(s): 1 min chart Trading sessions: Euro ans US Sessions Preferred Currency pairs: Medium to high volatility pairs (EURUSD, GBPUSD, USDJPY, GBPJPY, EURJPY,…) Download. GBPUSD 1 Min Chart Example. Trading Rules. Long Trade Setup: The MACD indicator must be above the zero line (bullish territory). Wait for the Stochastic indicator to go back above 20 from below (oversold). This is the signal to enter a long position. Place stop loss 1 pip below the most recent swing low point.

Price objective: Set at 10 pips above the entry point. Short Trade Setup: The MACD indicator must be below the zero line (bearish territory). Wait for the Stochastic indicator to go back below 80 from above (overbought). This is the signal to enter a short position. Place stop loss 1 pip above the most recent swing high point. Price objective: Set at 10 pips below the entry point. Trading Example. The GBPUSD 1 minute chart provided us with 3 short signals. Two trades were closed for 10 pips profit each (20 pips total). The last trade hasn’t achieved the profit target yet. The Best Forex Scalping Strategy – Using 3 Popular Technical Indicators. We’ll be going over the Forex scalping strategy presented in the video below. What are some of the advantages of using a scalping strategy to trade the Forex market? Quick profits Entry and exit is usually done within a couple of minutes. This allows for quick profits but can lead to quick losses as well. Exit is usually within 20 minutes or less Lots of trades.

Strategy uses 3 Indicators. The strategy uses 3 indicators: pivot points, Fibonacci retracement, and the Stochastic Oscillator. The 3 main pivot points both above and below the pivot are used for this system: S1, S2, S3 and R1, R2, R3. The Fibonacci retracement values used are the 0.618, the 0.382 and the 0.500 levels. The Stochastic Oscillator is set at 5,3,3. Step 1 – Marking important support and resistance levels. The first step is to mark the important support and resistance levels on the chart. These levels should include the Fibonacci levels. The chart below shows an example of this on the EURUSD 5 Minute chart that happened few days ago on May 31. The levels I’ve marked on the chart are the swing high at 1.3046, the swing low at 1.29675 and the 1.30058 level which is a previous support level that may turn into resistance if the price goes back up. How do you draw Fibonacci levels? Notice the pair was trending down and then starts to pause and make a retracement. We can now use our Fibonacci retracement tool to plot potential turning points that will propel price back to its initial downward direction. We do this by connecting the swing high with the swing low of the downward trend we just had on the Euro. These 2 points are marked with a yellow circle on the chart above.

By connecting these points the tool automatically draws the retracement levels on the chart for us. Entry and Exit with the Stochastic Oscillator. We enter and exit our trades by using the Stochastic 5,3,3 with overbought and oversold levels at the 80 and 20 marks. See the picture below. We enter a buy trade when the Oscillator is under 20 and is turning up. We enter a Sell trade when the indicator is over 80 and is turning down. We exit the trades on the opposite signals. If we’re in a long position, we exit when the Stochastic goes over 80. If we’re in a short, we exit it when the indicators prints below 20 indicating an oversold position. Putting it all together – Looking for confluence of events. When entering our trades we should look for a confluence of events as these will produce higher quality trades. The EURUSD 5 Minute chart below demonstrates one such example. After a downward rally, the price has come back to the 0.618 Fibonacci level. This level is also very close to the psychologically important resistance at 1.3000 and the previous swing point that we marked earlier at 1.30058.

At the same time, the Stochastic Oscillator is over 80 and is starting to turn lower indicating a short entry. We could enter on a break of the 1.30058 swing level or wait for a little for the important level at 1.300 to clear. The stoploss would go just above the swing high we just made just above the 0.618 Fib level at 1.30155. This gives us a total risk of 13 – 18 Pips on this trade. Once we’re in a short we now look to the Stochastic 20 level for our exit. Finally close to 3 hours later we get our exit when the indicator prints below and is starting to turn up. See the chart below. The price on the EURUSD at the time of the exit is at 1.2957. Depending on where we entered our short, we would gain around 40 – 45 Pips on this trade with a risk of only 13 – 18 Pips. Forex Scalping for Beginners. Trading is a very delicate job. In the Forex market, there are so many tools you can use in order to make money. There are a lot of specific styles of trading, whose characteristics can be very diverse. Those trading dimensions are: Price Action Indicator based Price ActionIndicator combination Harmonic VSA Range barsRenkoAny offline chart. Now you know a bit more about the different trading methods, you should have in mind that the method that you choose will define which strategy you will be using while trading. Different Time-Frames. Before you start to trade, try to think about the time perspective.

The time horizon will play a big factor in which time-frames are to be chosen. This can range from as low as a 1 minute chart, where the candle is formed every minute, to monthly charts where the candle forms once every month. Remember that each candle lasts for the specified period of time unless you are trading with the range bars which are completely immune to time factor. In trading terms, anything below an hourly time-frame can be considered short-term. Scalping and scalp swings are good examples of trading short term. Hourly and 4 hour time frames are optimal for intra day and intra week swing trading so we can say that anything below a daily time-frame can be considered medium-term. Daily and above time-frames can be considered long-term, especially weekly and monthly charts. Trades simply don't happen often, usually 4-5 times per year. Also, have in mind that a 1 minute chart trading strategy can be a bit overwhelming for you if you don't focus on your charts and you are distracted. We all want to make fast money with Forex. There are heaps of scalping strategies in Forex, but the majority of them do not work or they might be just very difficult to follow. However, scalping is the fastest way to make money in trading.

By definition, scalping is a fast paced trading style that specialises in taking fast profits on relatively small price changes, usually soon after a trade has been entered and has become profitable. It is done on lower time-frames - usually M15, M5 and M1 and it requires a trader to have a strict exit strategy. Have in mind that one large loss could eliminate the many small gains that the trader has worked to make when Forex scalping. Having the right tools, such a low spread broker, and the proper focus to place many trades, is required for this strategy to be successful. Forex scalping — using MT4 indicators — can be very difficult, due to signal delays, lagging, etc. In this case, sometimes it is much more profitable to use a price action scalping system that uses no indicators. The price will tell you what to do. The price is your signal and your best indicator. With the following scalping system you should be able to make good profits if you follow all the rules and risk management recommendations. This scalping strategy uses no complicated rules and should be very easy to use for any trader – even if you've never traded Forex before. The system does not require a trader to follow major Forex rules like: do not trade against a trend, ignore signals against a trend, because the system itself confirms trend following! So, let's learn how to scalp Forex. Scalping is not easy for beginners, please try the system on your demo account for at least one month before going live. This is a trend following strategy and for new traders it could be the best Forex scalping strategy. The benefit is also that you can use this strategy for 1 minute scalping, 5 minute scalping and 15 minute chart trading.

Forex Scalping Strategy For Beginners. Currency Pairs : EURUSD, GBPUSD, USDCHF, AUDUSD, NZDUSD and USDJPY. Platform : MT4 MTrading. Time Frame : 1m to 15m. Indicators : Bollinger bands (BB) (14 period) (green) Stochastic (STO) (14,3,3) with levels 90 and 10. Buy position : First the price needs to break below the lower Bollinger Band. We then wait for the candle to close inside BB again. The stochastic should be below 10 and crossing up 10 from below. Sell position : First, the price needs to break above the upper Bollinger Band. We then wait for the candle to close inside BB again. Stochastic should be above 90 and crossing down 90 from above. Exit position : At Opposite Bollinger Band or after 10-30 pips depending on time frame. Stop Loss : Stop loss is placed 3-5 pips below the last low for long (buy) trades or 3-5 pips above the last high for short(sell) trades. Before you open a LIVE account, please practise first on a DEMO account. We hope you'll enjoy this scalping method! 14 Popular Forex Trading Strategies. Last Updated : Thursday 12th July 2018.

Written By Tim Baudin Forex Trading Instructor. There are a number of Forex trading strategies developed over the years. Following just a single system all time can’t make you a successful trader. A trader needs to know how to face various market conditions. This is not an easy task and requires a good understanding of various strategies. Selection of strategies that can work for you also depends on your personal trading style . Please refer our guide on “7 Steps to Getting Started In Forex Trading” To help you understand and learn more, we have created a list of various popular trading strategies, ranging from basic to complex . They are represented for educational purpose and they can be applied by each trader in a different way. Table of Contents. 1. Easy Forex Beginner Strategy. A good money management skill and trading psychology always also plays an important role to make you a successful trader with any of this strategy. Following video presents a very easy strategy for beginners in Forex. He recommends that new traders stick to higher timeframe charts like the daily EURUSD chart he used in his example.

2. A Simple Forex Day Trading Strategy for Beginners. Day trading is one kind of trading style in which a day trader usually opens and closes all positions on the same day. In this type of trading, traders do not hold any overnight position. It is a short term trading technique but a bit longer term than scalping. Most of the day traders use 15 minutes, 30 minute or hourly charts for trading. 3. How to Trade with the Trend. One of the hardest questions new traders ask themselves is what is the trend? An uptrend is simply a series of higher highs and higher lows as indicated on the chart below. A downtrend is a series of lower lows and lower highs. Determining the trend depends on the timeframe you’ll be using to trade the market. The hourly chart may show an uptrend in a particular currency pair while the 4 hours may show a downtrend at the same time. 4. Fibonacci Retracement Day Trading Strategy. Fibonacci retracement is very useful in forex trading as it can determine potential support and resistance levels. These supports and resistances are particularly useful to detect reversals and entry opportunities. Fibonacci retracements tool is very useful for both day trading and long term trading with daily charts.

One should use Fibonacci retracements to find trading opportunities near retracement levels and then take entry decisions using technical indicators. We will discuss a day trading strategy using Fibonacci retracement tool. William % R is used in this strategy. 5. Effective and Simple Day Trading Strategy for Forex and Futures Markets. Here in this section, we will discuss a simple day trading strategy. This is a simple and effective trading strategy to start the day trading. Indicators used: Bollinger bands (period = 20 and deviations = 2) and MACD (12, 26, 9) indicators used in this strategy. Currency pairs: This strategy can be used in any currency pair. It is better to trading in the major currencies only. 6. Trading the Head and Shoulders Patterns. We have already learned about the formation of Reversal Patterns – Head and Shoulders Top and Bottom. Now we will discuss on how we can trade these chart patterns. These head and shoulders patterns can be traded in two ways; breakout and pullback. We already know that there is a neckline in every head and shoulders pattern. When price breaks this neckline, then it is a breakout and an entry signal.

7. Double Top and Double Bottom Trading Strategy. We have already discussed Reversal Patterns – Double Top and Double Bottom and learned to identify them and their effect. The double top and double bottom chart patterns are very useful in case of trading in financial markets. These patterns are found frequently, and these are very profitable chart patterns to trade. One thing we should remember that, it is not necessary to form exactly similar high or similar low in case of a double top and double bottom pattern respectively. Sometimes double top patterns found with a lower high point and double bottom pattern with a higher low point. 8. What is a Carry Trade & Forex Carry Trading Strategy. Some Forex traders trade currencies for the interest gap between two currencies. This is called carry trade. In carry trading, Forex traders aim to pull out the interest gap as profit when the price of the pair lies flat. It includes selling a currency with low interest rate, then using it to buy a currency with higher interest rate. 9. How to Use the RSI for Intraday Trading. How to apply the RSI indicator with Moving Average for Metatrader 4. This strategy uses the 5-minute chart of Tata Motors.

We’ll use the 5-minute EURUSD chart, so open a new blank 5-minute chart of this currency pair. 10. Using Bollinger Bands to Improve the RSI 5 Minute System. This is an addition to an earlier article I wrote on a similar topic called “How to Use the RSI for Intraday Trading” . The author of that strategy shares some more info about his intraday system. This time, he adds the Bollinger Bands indicator to the mix. This video is fairly short and like the last one lacks in detail regarding the entry signal. 11. Be with the trend using Momentum Trading Strategy. We should know about momentum strategy first. A momentum strategy is a strategy by which a trader trades in the direction of the major trend of the market or currency pair. Momentum strategy often called Trend Following Strategy. In the case of momentum traders, they tend to take long positions when the market is in the uptrend, and they tend to take short positions when the market is in the downtrend. Momentum traders may hold a position for short term or mid term or long term, depending upon the condition of a trend. 12. Trade Breakouts – How to Get in Before the Masses.

The video linked below deals with trading breakouts and how to get in a breakout trade early. Trading breakouts can be one of the most frustrating experiences for traders and especially for newer traders. Price will often break a previous high by just a few pips only to fall back into the range. How do you avoid this? 13. What is Scalping in Forex? – Learn A Simple Forex Scalping Strategy. Forex scalping trading is a very short term trading method. In this method, a trader usually holds a position only for few minutes. This method is quite different from day trading. In the case of day trading, traders usually hold the position for hours and close the position on the same day. In the case of scalping method, traders not only close position on the same day but also close the position in few minutes.

Those who use this scalping method are known as scalpers. Scalpers take entry several times in a day to make quick small profits. 14. Best Forex Scalping Strategy – Using 3 Popular Technical Indicators. We’ll be going over the Forex scalping strategy presented in the video below. What are some of the advantages of using a scalping strategy to trade the Forex market? Quick profits Entry and exit is usually done within a couple of minutes. This allows for quick profits but can lead to quick losses as well. Exit is usually within 20 minutes or less Lots of trades. Stochastic 1 Min Forex Scalper.

The Stochastic 1 Min Forex Scalper allows forex traders pick profits from the market with ease and at short intervals (M1, M5 and M15). This strategy reduces the burden a currency trader would have to face if they have to sit in front of their computer for long stretch hours. Taking into consideration the basic indicators that are being deployed, sit tight and enjoy a worthwhile, but yet simple trading strategy. Chart Setup. MetaTrader4 Indicators: Stochastic. ex4 (Input Variable modified; %K period=28), Darvas. ex4 (default setting) Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute. Recommended Trading Sessions: London, New York. Currency Pairs: Any pair with 4 pips maximum spread. Download. Buy Trade Example.

Strategy. Long Entry Rules. Initiate a buy entry if the following indicator or chart pattern gets displayed: If price breaks above the ceiling of the most recent box that makes up the Darvas custom indicator, the sentiment in the market is said to be bullish, hence a buy trigger. If the lines of the Stochastic indicator crosses within its oversold region (below the 20.00 signal level), from where it is seen to break above the 20.00 signal level, price is said to be pressured higher i. e. a buy alert. Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support. Exit StrategyTake Profit for Buy Entry. Exit or take profit if the following rules or conditions holds sway: If during a bullish signal price is seen to break below the floor of the most recent box (represents the pair low), a bearish trend is said to be underway, thus paving way for a possible exit or take profit. If the lines of the Stochastic indicator breaks into the overbought region (above the 80.00 signal level), crosses and subsequently break below this level, it is signaling an end to the bullish trend i. e. a trigger to exit or take profit at once. Sell Entry Rules. Enter a sell order if the following chart or indicator pattern takes center stage: If price breaks below the floor of the most recent box that makes up the Darvas custom indicator, the sentiment in the market is said to be bearish, hence a sell trigger. If the lines of the Stochastic indicator crosses within its overbought region (above the 80.00 signal level), from where it is seen to break below this level, price is said to be pushed somewhat lower i. e. a sell alert.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance. Exit StrategyTake Profit for Sell Entry. Exit or take profit if the following holds sway: If during a bearish alert price is seen to break above the ceiling of the most recent box (represents the pair high), a bullish trend is said to be underway, thus paving way for a possible exit or take profit. If the lines of the Stochastic indicator breaks into the oversold region (below the 20.00 signal level), crosses and subsequently break above this level, it is signaling an end to the bearish trend i. e. a trigger to exit or take profit without delay. Sell Trade Example. Free Download. About The Trading Indicators. The Darvas. ex4 custom indicator was designed in 1956 by Nicolas Darvas, an Ex-ballroom dancer. A Darvas box is formed when the price of a currency pair surges past the previous high but dips back to a price level not far from that peak. The idea behind the Darvas box is basically a momentum strategy.

The Stochastic Indicator is a momentum oscillator that is credited to George Lane. Two important lines make up the indicator i. e. %K fast line and the %D slow line, while it oscillates between 1 and 100. Essentially, the Stochastic gauges the relationship between an assets closing price and its price range over a specified time period. 15 Min Forex Day Trading Strategy. This day trading strategy works great on the 15 min charts. The strategy is composed of 3 trend indicators: 1 long-term indicator (200EMA) for overall trend direction and 2 short-term indicators (buzzer, octopus_2) for laser-sharp entries in the overall trend direction. Please feel free to experiment with other time frames as well. Chart Setup. Indicators: 200 Exponential moving average, buzzer, octopus_2 Preferred time frame(s): 15 minutes chart Trading sessions: London and New York Best currency pairs: any. Download. Example: EURUSD 15 Minute Chart. As shown in the EURUSD chart above, this short-term fx strategy provided us with 2 profitable sell signals in the downtrend (price below the 200EMA). Both trades were closed at risk-to-reward 1:2. Trading Rules. Price above the 200 EMA (bullish trend direction) Octopus_2 histogram paints green colored bar(s) Buzzer indicator changes color from red to green. ==> Open buy position at the open of the next bar. Stop-Loss: Place a protective stop-loss 1-2 pips below the most recent swing low point. Price Objective: Exit the buy trade at risk-to-reward 1:2 (i. e. risking 25 pips to make 50). Alternatively, exit the long trade when the Octopus_2 indicator changes color from green to red. Price below the 200 EMA (bearish trend direction) Octopus_2 histogram paints red colored bar(s) Buzzer indicator changes color from green to red. ==> Open sell position at the open of the next bar. Stop-Loss: Place a protective stop-loss 1-2 pips above the most recent swing high point.

Price Objective: Exit the buy trade at risk-to-reward 1:2 (i. e. risking 40 pips to make 80). Alternatively, exit the short trade when the Octopus_2 indicator changes color from red to green. The Best Forex Scalping Strategy – Using 3 Popular Technical Indicators. We’ll be going over the Forex scalping strategy presented in the video below. What are some of the advantages of using a scalping strategy to trade the Forex market? Quick profits Entry and exit is usually done within a couple of minutes. This allows for quick profits but can lead to quick losses as well. Exit is usually within 20 minutes or less Lots of trades. Strategy uses 3 Indicators. The strategy uses 3 indicators: pivot points, Fibonacci retracement, and the Stochastic Oscillator. The 3 main pivot points both above and below the pivot are used for this system: S1, S2, S3 and R1, R2, R3. The Fibonacci retracement values used are the 0.618, the 0.382 and the 0.500 levels. The Stochastic Oscillator is set at 5,3,3. Step 1 – Marking important support and resistance levels. The first step is to mark the important support and resistance levels on the chart.

These levels should include the Fibonacci levels. The chart below shows an example of this on the EURUSD 5 Minute chart that happened few days ago on May 31. The levels I’ve marked on the chart are the swing high at 1.3046, the swing low at 1.29675 and the 1.30058 level which is a previous support level that may turn into resistance if the price goes back up. How do you draw Fibonacci levels? Notice the pair was trending down and then starts to pause and make a retracement. We can now use our Fibonacci retracement tool to plot potential turning points that will propel price back to its initial downward direction. We do this by connecting the swing high with the swing low of the downward trend we just had on the Euro. These 2 points are marked with a yellow circle on the chart above. By connecting these points the tool automatically draws the retracement levels on the chart for us. Entry and Exit with the Stochastic Oscillator. We enter and exit our trades by using the Stochastic 5,3,3 with overbought and oversold levels at the 80 and 20 marks. See the picture below. We enter a buy trade when the Oscillator is under 20 and is turning up. We enter a Sell trade when the indicator is over 80 and is turning down. We exit the trades on the opposite signals. If we’re in a long position, we exit when the Stochastic goes over 80. If we’re in a short, we exit it when the indicators prints below 20 indicating an oversold position. Putting it all together – Looking for confluence of events.

When entering our trades we should look for a confluence of events as these will produce higher quality trades. The EURUSD 5 Minute chart below demonstrates one such example. After a downward rally, the price has come back to the 0.618 Fibonacci level. This level is also very close to the psychologically important resistance at 1.3000 and the previous swing point that we marked earlier at 1.30058. At the same time, the Stochastic Oscillator is over 80 and is starting to turn lower indicating a short entry. We could enter on a break of the 1.30058 swing level or wait for a little for the important level at 1.300 to clear. The stoploss would go just above the swing high we just made just above the 0.618 Fib level at 1.30155. This gives us a total risk of 13 – 18 Pips on this trade. Once we’re in a short we now look to the Stochastic 20 level for our exit. Finally close to 3 hours later we get our exit when the indicator prints below and is starting to turn up. See the chart below. The price on the EURUSD at the time of the exit is at 1.2957. Depending on where we entered our short, we would gain around 40 – 45 Pips on this trade with a risk of only 13 – 18 Pips. Automated Forex Trading System – 80% Accurate Forex Scalping System Strategy With MACD And Stochastic Indicator. As a professional trader spending hours on hours per week looking at charts, you start to develop a technical vision which unconsciously lets you see cardinal points in the market, overlooked by the untrained eye. For several years, I have been following a certain pattern in the market which produces over 80% winning trades every time I apply it . Use these NON-REPAINT Tools For Making The Perfect Trade Entry ( the best trading tools all traders MUST HAVE ) Use a demo account or a small live account first to practice this trading system DOWNLOAD TRADING SYSTEM. After working with it manually for several years and taking very nice profits from the market, I have started the phase where I am trying to automate my rules of trading as much as I can. My belief is ( and it’s almost certainly a fact ) that there are certain strategies, especially the most accurate ones, which simply cannot be converted into 100% automated without losing accuracy and the Pips Carrier is one of them .

However, using available technology in a smart way allows you to mediate this deficiency and achieve at least 95% automation. A late night dinner with a dear friend led me to a decision. “Why not publish it and let others enjoy it as well, and, more importantly, profit from it?” His enthusiasm convinced me. In addition, releasing this system goes hand in hand with my primary goal, which is to increase the level of trading for many traders out there. With the help of my trading tools, I have created for you (well, Marina coded it so she deserves some credit), the Pips Carrier, which turns out to be a piece of cake even for beginners, allowing them to produce amazing results right from the start. My belief is that even a trader who uses technical analysis must understand the basics of the indicator he uses in his day to day trading. The first indicator I want to talk about is the MACD indicator. MACD stands for Moving Average Convergence Divergence. It is a very important indicator. Unfortunately, I don’t know a lot of traders who have an in?depth understanding of the importance of this indicator, and even fewer traders who use it as they should. The MACD indicator is considered by many, including myself, to be one of the most reliable of all the existing indicators in technical analysis—when used correctly (which is what I’m here for). This indicator has been developed by Gerald Appel , who is considered a classic technical analysis guru. The MACD indicator consists of 2 moving averages and a histogram. This is what it looks like: The BLUE average is the short period average and the RED average is the long period average. Note : the MACD Complete indicator included with the Pips Carrier installation is NOT the same as MetaTrader’s built in MACD. The one you got with Pips Carrier follows the classic form of the MACD.

The histogram (the vertical bars you see below the lines) represents the difference between the two averages. Zero level is the most important level of this histogram. This is a test level. When the histogram is above zero level , the currency is on an uptrend . When the histogram is below zero level , the currency is on a downtrend . Let’s look at the following chart and analyze it: You notice that the histogram consists of several slopes. A histogram’s slope determines the current direction of the market . If a histogram is above zero level and its slope is facing down, this is a sign that the market is expected to decline. If a histogram is below zero level and its slope is facing up, it means that market is likely to go up. Let’s look at another example: In this strategy we will look for a very specific setup: For a long trade , we want the histogram to: Be above zero level. Then we want it to start declining towards the zero level. After it nears the zero level, we want it to reverse and go up again. This situation indicates that the market is on its way to a reliable uptrend, one that will allow us to join it. An example of a long trade such as the one we’ve just described: For a short trade, we want the histogram to: Be below zero level.

Then we want it to start rising towards the zero level. After it nears the zero level we want it to reverse and go down again. This situation indicates that the market is on its way to a reliable downtrend, one that will allow us to join it. For example: We want to join this downtrend. Now, you are probably wondering: when exactly should we enter this trade? In order for us to answer this question we should turn to our next indicator – the Slow Stochastic. This indicator will help us with making a final confirmation of this trade and it will determine the exact point to enter it. I’ve included the Stochastic with the Pips Carrier template, and this is what it looks like: This indicator consists of two very important levels: Level 80 and level 20. These two levels represent extreme zones . Level 80 reflects the overbought zone and level 20 represents the oversold zone . I assume that when the market reaches these levels, it is about to change its direction. So, if the Stochastic reaches level 80, I would expect the market to turn down. If it touches level 20, I would expect it to go up. After we’ve learnt about these two indicators, let’s see exactly how we should execute trades. I’m going to divide this explanation into the two possible scenarios: Entry for buy (long) Entry for sell (short) 1. First we need to recognize a turning point on the MACD histogram . This means that the blue histogram bars should be above the zero level, and then it should start declining.

Finally it should reverse and go up again. 2. After we’ve made sure that conditions are met on the MACD histogram , we should turn to the Stochastic indicator and see its position: we need it to be on the oversold area (around level 20); we want the two lines to cross each other; and we want the lines to face up . We want at least one of the averages to be below level 20. 3. Now is the moment we should determine our exact entry point . The moment we see the histogram rise again and the stochastic decrease to the oversold zone, we need to wait for the candlestick that created this condition to close. As soon as the candlestick is closed, we should enter this trade. Let’s analyze a long trade example: In this example we can clearly see that the histogram is facing up again and that the Stochastic lines have crossed each other on the oversold level, on their way up. Here is another screenshot of a long trade: The histogram is facing up and the stochastic lines have crossed each other on the oversold zone, level 20. There’s a very important point I would like to add. It refers to a situation where the histogram is above level 0 and declines below level 0 . If it happens (i. e., if it declines below level 0), it has to reverse and return immediately above this level on the next bar in order for this to be a valid trade setup. For example: Now that we understand how to enter a long trade, the next step is managing it correctly. Let’s see how we should manage a long (buy) trade. We place the stop loss 1 pip below our base candlestick, which is the candlestick where all the conditions have been met. For Example: Here I’ll close the trade in two parts: 80% of the trade will be closed initially, and then I’ll close the remaining 20%. First Take Profit Target My first take profit goal is to set a profit target of a 1:1 ratio between the stop loss and the take profit. For example: If I risk 50 pips, my take profit target will be 50 pips. When the price reaches the first take profit target, I’ll close 80% of this trade. Second Take Profit Target After the first part of the trade has been closed, I will move the stop loss to the breakeven point (that is, I’ll change it to the trade’s opening price). The second profit target is twice the stop loss. For example : If I’ve risked 50 pips my second profit target is 100 pips.

This is a screen shot of target 2: Our first take profit target is closed successfully in 80% of trades and the second profit target is closed with a profit in 45% of trades. This strategy repeatedly generates impressive returns for me, and I’m sure that once you master it, you will see the difference in your bottom line as well. On the following page we will analyze short trades. How should we enter a short (sell) trade? 1. First we need to recognize a turning point on the MACD histogram. This means that the histogram should be below the zero level, and then it should start rising. Finally it should reverse and go down again. For example: 2. After we’ve made sure that conditions are met on the MACD Histogram , we should turn to the Stochastic indicator and see its position: we need it to be on the overbought area (around level 80); we want the two lines to cross each other; and we want the lines to face down. We want at least one of the averages to be above level 80. 3. Now is the moment we should determine our exact entry point . The moment we see the histogram fall again and the Stochastic reach the overbought area; we need to wait for the candlestick that created this condition to close. As soon as the candlestick is closed, we should enter this short sell trade. This is an example of a short sell trade: Another Example of a short sell trade: Please note : if a histogram is below level 0 and starts rising above this level, it has to reverse and return immediately below this level on the next bar in order for this to be a valid trade setup.

Now that we understand how to enter a long trade, the next step is managing it correctly. We place the stop loss 1 pip above our base candlestick, which is the candlestick where all the conditions have been met. We should add the spread to the stop loss in a short trade, so we place the stop loss 1 pip+ spread above the high of our base candlestick . Here I’ll close the trade in two parts: 80% of the trade initially, and then the remaining 20%. First Take Profit Target My first take profit goal is to set a profit target of a 1:1 ratio between the stop loss and the take profit. For example: If I risk 50 pips, my take profit target will be 50 pips. When the price reaches the first take profit target, I’ll close 80% of this trade. Second Take Profit Target After the first part of the trade has been closed, I will move the stop loss to breakeven point (that is, I’ll change it to the trade’s opening price). The second profit target is twice the stop loss. For example: If I’ve risked 50 pips, my second profit target is 100 pips. That’s it my friend. This strategy has proven to be very reliable and accurate. It is also easy to use—the ultimate way to enjoy and take advantage of market trends. I wish you good luck with your trading and hope you’ve enjoyed reading this tutorial. Meta Scalper – A Simple Low Risk Scalping Strategy.

The method can be used in any markets but it is best (and has lowest risk) when the market is range bound. It is a low yielding strategy. That means the profits are not huge but they are consistent when the system is correctly applied. I have used this method over several months on both one-minute (M1) and five-minute (M5) time frames. However, it can be adapted to work at higher timescales if you choose. Unlike most other scalpers, this method enters the market on triggers from an indicator as well as price behavior at each bar (candle). A key element of this strategy is that it spreads risk across a number of trades to create a scalp sequence . This averaging out is essential in restricting drawdowns and creating incremental profits. Unlike other scalping systems, trades are allowed to drawdown.

Many scalping system abandon a trade as soon as it enters a loss. However because the exposure is spread among multiple trades the impact of drawdown on the account’s balance is limited. Because of the need to allow trades to enter a loss, it is not advisable to use this method with aggressive leverage. With this strategy, I do not use more than one standard lot per $10k of account balance. That is, there is never more than one lot of exposure at any time. Typically, the exposure is spread over 100 trades. However, with the entry signal I use there are rarely more than 10 trades open at once. It averages around 5 trades per day and the average total profit is 25.9 pips per day. The table below summarizes the setup:



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