This 20 Pips Forex Scalping System With Linear Weighted Moving Average is a forex scalping strategy that is really suitable for beginners and in a trending market, it would perform very well.
What you need are two moving averages, the first one is 144 linear weighted moving average and the second moving average you will need is the 5 period smoothed moving average.
The decision about buying or selling a currency pair is entirely dependent on the cross over of these two moving averages.
How To Set Up Your Chart
Indicators required:
- linear weighted moving average applied to close, period 144.
- smoothed moving average applied to close, period 5
Timeframes: 5 minute charts
Trading Sessions: UK and US
Currency Pairs: EURSUD, GBPUSD, USDJPY, AUDUSD
The chart below shows you trading examples of this 20 Pips Forex Scalping System With Linear Weighted Moving Average in action:
Buying Rules
The buy trading rules for this 20 pips scalping system are really simple, here they are:
- buy when 5 sma crosses the 144 linear moving average to the upside.
- place your stop loss below the most recent swing low point or 15 pips, whichever comes first.
- For your take profit target, aim for 20 pips.
Selling Rule
You do the exact opposite of the buy rule when you sell…
- buy when 5 sma crosses the 144 linear moving average to the downside.
- place your stop loss below the most recent swing high point or 15 pips, whichever comes first.
- For your take profit target, aim for 20 pips.
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