Scalping strategy in the range

Scalping in the range

Scalping — is a popular strategy in the trading world that involves profiting from small price fluctuations over a short period of time. This technique is most suitable for active traders who can quickly react to market changes and make many trades throughout the day.

One of the interesting features of scalping is its application during a sideways trend or scalping in a range - a situation when the market moves within a narrow price corridor without a clearly defined upward or downward trend.

Time frame: any, M5-M15 - for intraday trading, H1-H4 - for swing trading

Trading tool: any (forex, futures)

Basics of Strategy

The price on the trading market ranges from liquidity zones, that is, from high to low. Price draws highs and lows and then collects that liquidity.

On the chart, we are looking for flat situations when the price is in the range. To determine the flat, you need to find a model similar to the letter V (that is, points 1, 2 and 3). When the range is formed, it is necessary to wait for the test, and it is better to update its peaks. As soon as the vertices are updated, we open an order in the opposite direction.

Take-profit - channel width. 

Stop-loss - channel width, or 70-90% of the channel width. R:R 1:1 or 1:1.5

Trading result for 1 month

Deposit: 500.91

Profit: 469.87

Additionally:

- for a better win rate, you can trade in the context of an older timeframe, i.e. if the trend is up, then the entry into the range should be sought for purchases.

- for swing trading, look for corridors of 40-50 points.

Conclusion

Scalping in the range — it is an effective strategy for traders looking to profit from short-term price fluctuations. Due to the limited range of price movement and the predictability of the market, traders have the opportunity to make many trades with low risks. The result of this strategy confirms its effectiveness.