This Forex Scalping Strategy With Stochastic Oscillator can provide you with lot of trading opportunities each day.
For each trade placed, you are aiming for 10 pips profit. Don’t forget to experiment with different settings and find out which one works best for you.
How to Setup Your Charts
These are the indicators you require: Fisher Indicator and stochastic oscillator with default settings.
Timeframe: 1 minute
Trading Sessions: Preferably the UK and US trading sessions
Currency Pairs: low spread pairs like EURUSD and GBPUSD AUDUSD etc
The chart below shows how this forex scalping system works and as you can see, there were 5 valid buy trading signals within just 2 hours during the Asian forex trading session and 3 trades have been closed with a total of 30 pips profit in total…Only two trades remain open until profit target is reached or stop loss is hit.
Buying (long) Rules
The buying rules are really simple:
- the fisher indicator must have a green bar.
- the stochastic indicator reaches 20 level or turning up to it or is just above it.
- execute a buy order if the above two conditions are met.
- place you stop loss below a nearest swing low or 10 pips (whichever comes first).
- your profit target should be 10 pips
Selling (Short) Rules
The selling rules are complete the exact opposite of buying rules and here they are:
- the fisher indicator must have a red bar.
- the stochastic indicator reaches 80 level or turning down to it or is just below it.
- execute a sell order if the above two conditions are met.
- place you stop loss below a nearest swing high or 10 pips (whichever comes first).
- your profit target should be 10 pips
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