The purpose of scalping is to make small profits while exposing a trading account to minimal risk,which is due to quick open/close trading method.Using this strategy it is wise you go for 10 to 20 pips plus spread per trade and demo trade this strategy for at least a month before going live with it.
This is a simple and easy to use strategy that requires you to stay disciplined, with little time in front of your computer.it is traded on mostly 15 minutes chart but nonetheless as it is, in trading,the foreign exchange market nothing is cast in stone. That is,you can still modify it and use it on other time frame for example you could apply it to the one hour chart and see how it works.
Trading Period For This Strategy:
Always watch out for trading opportunities around 9 am to 12 pm London trading session for morning trade. And for the afternoon trade(new york trading session)watch out for this time 2 pm to 4 pm London time. An additional advantage for technical traders is when there are no major news event affecting the currency,you will always see a clear trend for the day. When trading using technical indicators make sure you know when the news of the currency you are trading is due out for release so that you can position yourself. That is,close your open trades 10 to 15 minute before news comes out,or enter into a position 10 to 15 minutes after news has been released.
The set up:insert on your chart exponential moving average 4,linear moving average 10. Modify moving average convergence and divergence indicator (10,24,7)
Buy signal: Buy when the exponential moving average 4 punches through the linear moving average 10 going up and,also confirm with moving average convergence and divergence indicator punching through its zero line.
Sell signal: Sell when the exponential moving average 4 punches through the linear moving average 10 going down, also confirm with the moving average convergence and divergence indicator going below its zero line.
Happy Trading
