Profitable Forex Scalping Strategy

This profitable Forex scalping strategy is based on two kinds of technical indicators that show where you should enter a trade and where you should exit. You can find them in any Metatrader 4 trading terminal, Parabolic SAR and exponential moving average (EMA) with periods 10, 20, 50. The trade chart using the ‘Forex Profit’ trading strategy is shown on two pictures below.

Dark yellow – EMA with period 10 (ЕМА (10)), blue – ЕМА (25), red – EMA (50). Parabolic SAR has standard parameters.

Opening a Trade using the Forex Strategy ‘Forex Profit’

According to this strategy, all profitable buy signals appear only when EMA (10) has crossed ЕМА (25) and ЕМА (50) bottom-up. Here, you should open a trade but make sure the Parabolic SAR is below the price. If you want to open a sell trade, the conditions are exactly the opposite.

In picture 1, you can see the example of opening a trade using the rules of the ‘Forex Profit’ trading strategy. The green circle is where ЕМА (10) crossed ЕМА (25) and ЕМА (50) bottom-up and the Parabolic SAR was below the current price. Should you prefer to use Forex trading strategies on H1 timeframes, as shown in the example, you should make sure before opening a trade that the Parabolic SAR has the same position on the 15-minute and H1 interval. Never go against Parabolic SAR on M15.

Rules of Closing a Trade

Ideally, the best trade exit signal is crossing all of the ЕМАs in the opposite direction as shown in our example. In this case, a trade should be closed at the point marked by the red circle. Besides, the ‘Forex Profit’ trading strategy, like many other free Forex scalping trading strategies, lets you exit a trade on a constantly moving stop loss or trailing stop.

Placing a Protective Stop-loss

Placing a protective stop-loss is an essential condition and applies not only to ‘Forex Profit’, but to other profitable Forex strategies, too. n our case, a protective order should be placed a bit below EMA (50) for a buy trade and a bit above for a sell trade. Besides, it is advisable to move a stop loss on EMA (50) during a price movement. Should the price move in the opposite direction, you would be able to keep the bulk of your profit. It is important to totally abide by the rules of this Forex strategy to guarantee successful trading. Therefore, you should close a trade when crossing all of the ЕМАs in the opposite direction.

Using the ‘Forex Profit’ Forex strategy on the 15-minute Chart

This Forex strategy works quite well on the 15-minute chart, but you should take into account several special features. An example of opening a trade is shown on the picture below.

As opposed to H1 trading, M15 trading is more unsteady but on the other hand, you can open a large number of intraday trades and gain good profit. However, be aware that occasionally the price draws a ‘seesaw’ on a chart through all the moving averages. In this case, if you have an opened trade, it would be better to close it at market price and wait until the moving averages diverged.

1-minute Chart Scalping

The first example shows trading on the H1 chart. Here, trades can last for several days and sometimes even weeks. The second example is for the M15 chart and is more suitable for day traders. Here, trades are closed within a day. You can use ‘Forex Profit’ for scalping too, in that you can open and close trades on 1-5 minute charts. Profit from each trade won’t be large, but such trading strategies have one big advantage: there are many trades, so profit could be quite significant. If you intend to the ‘Forex Profit’ trading strategy for scalping, you should take into account the following:

You should use ЕМА (25), ЕМА (50) and ЕМА (100) instead of moving averages with periods 10, 25, 50 - As a rule, the best time for scalping is the opening of the London or New York Stock Exchange. All currency pairs start moving in one direction at such moments and many free Forex trading strategies use this feature - You should open a buy trade when the price crosses all three moving averages from the bottom- up

- You should open a sell trade when the price crosses all three moving averages from the top

downward

- Don’t try to make a lot of profit from one trade. You can close a position after getting 5-10

points