The Stochastic Forex Scalping Trading Strategy will allow Forex traders to make incremental profits over short time frames. Over time, these small profits can add up to substantial amounts and can prove to be very lucrative for forex traders.
For this particular trading strategy, the timeframe that should be used is the 15-minute chart. It can also work well as a scalping strategy on the 1-minute and 5-minute timeframes. You may use any currency pair that you like for this strategy.
It is important that you set up your charts right in order to get the best results from this trading strategy. You may choose any trading session that you desire to use, and it is recommended that you work with the 1-minute, 5-minute, and 15-minute charts.
We will be using MetaTrader4 Indicators for this setup. Here are the indicators to use:
Now it’s time to reveal the actual trading strategy:
The Buy Trading Strategy
Use the above chart to follow along. Proceed to buy only when both of the following conditions exist:
You should place your stop loss about 2 pips below the support level.
When to Sell
The following scenarios are indicators that you should sell:
For a short trade, you should place your stop loss 2 pips above the resistance.
The Strategy for Exiting a Trade
If any of the following scenarios take place, you should exit the trade or take profit.
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