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A forex trader shares a scalping strategy for USD/CAD using the EFI indicator. Sell when it breaks zero level line, and buy when it goes up. Set stop loss and profit target. Like, share and subscribe.
Forex Scalping Strategy: Making Quick Profits in USD/CAD with EFI Indicator
Introduction
Forex scalping is a trading strategy that involves opening and closing positions quickly in an attempt to make small profits several times a day. In this article, we will discuss a forex scalping strategy that traders can use to make profits in the USD/CAD currency pair. The strategy involves using the EFI indicator and making some adjustments to its settings. Let us dive in and learn more about this strategy.
Step-by-Step Guide to the Forex Scalping Strategy
Step 1: Open the USD/CAD Currency Pair in a 15 Minute Timeframe
The first step in this strategy is to open the USD/CAD currency pair in a 15-minute timeframe. This is the timeframe that we will use to execute our trades. It allows for enough time to analyze the market and execute our trades in a timely manner.
Step 2: Applying the EFI Indicator
Next, we will apply the EFI indicator to our chart. The EFI indicator is a technical analysis tool that measures the change in price and volume of a security. It is used to identify trends and confirm trading signals. We adjust the settings of the indicator to make our trading signals more reliable.
Step 3: Sell Trade Signal
If the EFI indicator makes a Moving Average (MA) break below the zero-level line, it signals a sell trade. This means that there is a higher probability of the price going down, and we should open a sell trade. We wait for the EFI indicator to confirm the sell signal before opening a trade.
Step 4: Placing the Sell Trade
Once we have the sell signal confirmation, we can place a sell trade. We set our stop-loss at the previous high point, and our take-profit target at 1:1. If the tradet reaches 1:1 profit target, then we have successfully executed the trade.
Step 5: Buy Trade Signal
If the EFI indicator makes a Moving Average (MA) break above the zero-level line, it signals a buy trade. This means that there is a higher probability of the price going up, and we should open a buy trade. We wait for the EFI indicator to confirm the buy signal before opening a trade.
Step 6: Placing the Buy Trade
Once we have the buy signal confirmation, we can place a buy trade. We set our stop-loss at the previous high low point, and our take-profit target at 1:1. If the trade reaches the take-profit target, then the trade is successful.
Conclusion
In conclusion, forex scalping is a trading strategy that allows traders to make small profits several times a day. The strategy we have discussed in this article involves using the EFI indicator to identify trading signals in the USD/CAD currency pair. By making some adjustments to the settings of the indicator, we can make our trading signals more reliable. It is important to note that this strategy requires discipline and proper risk management to be successful. Traders should practice on demo accounts before trading live to get a proper understanding of the strategy. If you found this strategy helpful, please like, share, and subscribe to our channel for more forex trading strategies. Happy trading!
