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Forex trader shares perfect scalping strategy in this video. Strategy works only on signals with two indicators – Better Trend X and CMF. Details included.
The Perfect Forex Scalping Strategy for Traders
Forex scalping is a popular trading strategy for both beginners and experienced traders. It involves making a high number of trades in a short amount of time, usually holding positions for only a few minutes or seconds. In this article, we are going to share with you a perfect forex scalping strategy that you can use to maximize your profits while minimizing risk.
Opening the Gold Pair in a 15 Minute Time Frame
The first step in this strategy is to open the gold pair in a 15-minute time frame. This is because the gold pair is highly liquid and provides many trading opportunities. It’s essential to have the right timeframe to make quick entries and exits.
Using Signals as the Only Trading Indicator
The key to this strategy is only trading on signals. We will not be relying on any other technical indicators to make trades. This will allow us to have a clear and straightforward approach to trading.
The Two Indicators Needed for the Scalping Strategy
There are two indicators that we need to use. The first is the Better Trend X indicator. We will modify the settings for better accuracy. The second is the CMF (Chaikin Money Flow) indicator. We will use this indicator as an extra confirmation.
Better Trend X Indicator Settings
To modify the Better Trend X indicator settings, we need to do the following:
1. Click on the “Indicators” button in the top toolbar.
2. Select “Better Trend X” from the list of indicators.
3. Change the settings to “10” for the Period and “1.4” for the Level.
4. Click “OK” to save the changes.
CMF Indicator Confirmation
To use the CMF indicator as an extra confirmation, we need to follow these steps:
1. Click on the “Indicators” button in the top toolbar.
2. Select “CMF” from the list of indicators.
3. Check that the line color is black, and the level is set to zero.
4. Click “OK” to save the changes.
Making Trades
Once we have set up our indicators, we can begin making trades. Here are the steps we need to follow:
1. Wait for the market to be above the Better Trend X indicator.
2. Check that the CMF indicator is above the zero level black line.
3. If both conditions are met, take a buy trade.
4. Place the stop loss at the previous low point.
5. Set the profit target at a ratio of 1:2.
6. If the trade hits the profit target, close the trade.
7. If the trade hits the stop loss, exit the trade.
8. Repeat the process for new trades.
Successfully Winning Trades
Here are examples of winning trades using this forex scalping strategy:
1. The by signal confirmation was met, and we placed a buy trade. We set the stop loss at the previous low point and the profit target at 1:2. The trade hit the profit target, and we won.
2. The by signal confirmation was met again, and we placed another buy trade. We set the stop loss at the previous low point and the profit target at 1:2. The trade hit the profit target, and we won again.
Creating a Trading Plan with the Perfect Forex Scalping Strategy
Now that we understand the steps involved and examples of winning trades let’s break down how to create a trading plan using this forex scalping strategy. A trading plan will help us manage our risk and increase our probability of success.
1. Set Trading Goals – Determine your trading goals, what percent return do you want?
2. Determine Risk Profile – Assess your risk tolerance and determine the amount of risk you are willing to take.
3. Set Trading Hours – Determine the hours you are going to trade.
4. Develop Money Management – Decide on the amount of money to invest per trade, and determine how many trades you will make in a day or week.
5. Set Entry and Exit Rules- Determine your entry and exit rules, and stick to them. This will allow you to be consistent in your approach.
6. Monitor Your Trades – Monitor your trades to make sure your trade plan is working or to make adjustments where necessary.
Conclusion
In conclusion, forex scalping involves making fast and short trades using a high number of orders. The Perfect Forex Scalping Strategy for Traders is a great trading plan template that will help you manage risk and increase your chances of success. Remember, the key to success is to stick to your trading plan, even when emotions kick in. Happy trading!
