Simple scalping strategy

Scalping strategy with EMA

Today we will show you a simple scalping strategy.

Trading Strategy Rules:

1. Timeframes: M1-M5 (We recommend M5)

2. The Exponential Moving Average (EMA): Price must be above the 20 EMA for a buy and below for a sell.

3. Candle Condition: Candle color must change.

4. Setup Bar Conditions:

- Setup bar must be a strong bar, closing within 75% of its range (the distance from the lower shadow of the candlestick to the upper shadow of the candlestick).

- Volume of the setup bar must be higher than the previous bar.

5. ATR Criterion: ATR(14) (Average True Range) must be above 4 pips, or inside NY KZ (this occurs from 8:00 AM to 12:00 PM (EST), when both the London and New York sessions are active. This trading period is characterized by more trading and volatility in the forex market.

6. Take Profit and Stop Loss:

- Take Profit: 1R (one times the range of the setup candle).

- Stop Loss: Can be placed very close to the setup candle's low (for buys) or high (for sells).

7. Entry on the next candlestick after the signal bar.

Additionally:

Trade carefully if the setup candle has an abnormal size. It is best not to trade such candles at all. This system is best traded manually. A trend line or trading levels can improve the signal.

Conclusion

The trading strategy showed a good result over a certain period of time, so we put it on the site. You can experiment and add something of your own.

You can download a template MT4 for this Simple scalping strategy.

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