Stop loss is placed at the high of the trigger bar at 1.1144. This is our sell order which goes to 1.1134. We counted 5 candlesticks back from the trigger one and chose the one with the lowest low. We opened the M5 chart and waited for the trigger bar. The 8-period EMA was moving below the 21-period EMA. On the H1 chart of EUR/USD, we noticed that the pair was moving within a downtrend. The second one is twice bigger than the distance between the entry and the stop loss. The first take profit equals the size of our stop loss.Stop loss is placed at the high of the trigger bar. A sell order is placed at the low of this candlestick.We need to find the lowest candlestick amid those which appeared before the trigger bar.We wait for the candlestick to touch the 8-period EMA by its high.The wider it is the stronger is the trend. We turn our attention to the M5 chart and place a 13-period SMA there.Remember, as with a “buy” scenario moving averages should not cross each other. On H1, the 8-period EMA should be below the 21-period EMA.On the other hand, let’s look at the steps for opening a short position. The stop loss is placed at the low of the trigger bar at 1.1537, while take profit levels go to:
We placed a “buy stop” order at the high of the highest candlestick. We counted 5 candlesticks back from the trigger one and chose the one with the highest high. The trigger candlestick occurred at 12:55 on July 22. We switched to M5 and waited for the candlestick to test the 8-period EMA by its lower shadow. The 8-period exponential moving average was moving above the 21-period one. On H1 we can see that the price is moving within an uptrend. We will be looking at the chart of EUR/USD on July 22. If the trend remains strong on H1 and we are confident enough, we can double our reward and close the position at the distance twice bigger than the one between entry and stop loss.
Stop loss equals the low of the trigger bar. A buy order is placed at the high of this candlestick.We need to find the highest candlestick amid those which appeared before the trigger bar.We wait for the candlestick to touch the 8-period EMA by its bottom.This moving average is needed to see the gap between 8-period EMA and 21-period EMA. Now we go to M5 and insert 13-period SMA.Moving averages should not cross with each other. To confirm this trend, 8-period EMA should be above 21-period EMA. For a “buy” scenario, we need to see an uptrend.To do that, open Metatrader, click to “Insert” – “Indicators” – “Trend” – “Moving Average”. To do that, we open the H1 chart and insert 8- and 21- EMA. At first, we need to confirm that the trend is going up.Currency pairs: liquid ones with tight spreads ( EUR/USD, GBP/USD, USD/CHF, USD/JPY).We believe anyone of you may try them out and see how effective they are. Nevertheless, the strategies we are going to explain below are easy and understandable. If you answered "yes" to more than two points, then you are a true scalper! As for those who answered "yes" just once – you are probably considering this approach for now. Like to have large position sizes to get more return from short-term trades.Like risks and are ready to devote all your time to trading.Trade on small timeframes (M1, M5, M15).Today, we will help you with this struggle and share with you some effective strategies for scalping.īut firstly, let’s find out if these scalping strategies are useful for you. A self-confident newbie in scalping may turn into a loser if he does not have an algorithm for entering the market. It's important to know the tips on risk management and place entry and stop loss levels in the right way. Therefore, a scalper needs to have steel nerves and follow the market carefully. Experts identify scalping as a quite risky trading approach, which requires keeping an eye on the charts for the whole day. In literature, scalping is defined as a short-term trading style, which helps to succeed in the market from small price changes as many times as possible within a day. Instead, you make “slices” of pips on the small changes in the price. In trading, you don’t have to do anything with a human scalp. Traders, in their turn, find a lot of hidden opportunities behind its meaning. Scalping may look like a scary word to a regular mind.
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