EASY Scalping Strategy For Daytrading Forex (High Winrate Strategy)

DoseOfLaugh

Money,finance

Transcript

00:00In this video, I'm revealing a simple and profitable scalping strategy that is proven to have a high win rate.

00:08So without further ado, let's get on with the video.

00:13For this scalping strategy, I'm using three types of exponential moving averages.

00:18The 25, 50, and 100 period.

00:22And I'm going to be using the 5 minute time frame.

00:26So this is how the strategy works.

00:29The first step is that we want to find an existing trend.

00:33And the way we do that is by looking at the EMA.

00:37All three lines need to be heading in the same direction and are also separated from each other like this.

00:43Remember, we don't want ranging markets like this, which can be identified by the EMA heading sideways.

00:51You also want to avoid markets where the lines are crossing each other like this.

00:56Remember, we want the three indicators to be in the same direction.

01:00The position of the candles are also important.

01:04You want to find a setup where the candles are fully outside of the 25 EMA like this.

01:10So, once you've identified the setup, the next step is finding our entry signal.

01:16Our entry signal will be when the price makes a pullback and closes below the 25 or 50 EMA.

01:24Let me show you what I mean.

01:26So, in this chart, we have spotted an existing uptrend as shown by the three EMA.

01:30All of them are heading upwards while the candles are above them.

01:34Next, you want to wait for the price to make a pullback towards the 25 or 50 EMA.

01:40And so, this will act as our entry setup.

01:45The next step is to wait for the price to go back to the 25 EMA again.

01:51Once this happens, you take a buy position here.

01:57However, if the price instead went down and broke below the 100 EMA, you cancel your whole

02:04setup and look for other trade opportunities because this may indicate that the trend is

02:09changing.

02:10Now for your exit strategy.

02:12So, let's say you took a buy position here.

02:16You want to set your stop loss at the 50 EMA.

02:19And for your profit target, you set it at 1.5 times your stop loss.

02:25So, here's an example of the strategy in action.

02:29In this chart, we can see that the market is currently on an uptrend as shown by all three

02:34EMA heading upwards while all the candles are above the EMA.

02:39Next, we are waiting for a pullback towards the 25 or 50 EMA.

02:44But remember, it must not cross below the 100 EMA.

02:49So, once the pullback happens, the next step is to wait for the price to reverse back up

02:55to the 25 EMA.

02:58Once this happens, you take a buy position.

03:01Next, we set up our profit target and stop loss here.

03:07And as you can see, the price ends up hitting our profit target, so this counts as a successful

03:13trade.

03:14Let's look at another example.

03:16In this chart, we can identify an existing downtrend, as shown by all three EMA heading

03:22downwards, while all the candles are below the EMA.

03:27Next, we are waiting for a pullback towards the 25 or 50 EMA.

03:32And remember, the pullback must not overlap the 100 EMA.

03:37So, once the pullback happens, we wait for the price to go back to the 25 EMA again.

03:44And when it does, you take a sell position here.

03:48Next, we set up our profit target and stop loss here.

03:52And as you can see, the price hits our profit target and this would've been a successful

03:59trade.

04:00So, that's how you trade the triple EMA scalping strategy.

04:05Now, as a bonus, I'm going to reveal to you another highly profitable scalping strategy.

04:12So, for this next strategy, I'm using a combination of the RSI, the 200 EMA and the engulfing pattern.

04:20So, this is how the strategy works.

04:23First, you need to change the settings for the engulfing pattern to no detection.

04:28Next, for your RSI, you want to set it at both 50.

04:33So, now you have a single line in the middle of the RSI.

04:37Next, I'm using the 1 minute timeframe.

04:41For your entry setup, if the price is above the 200 EMA, while a candle shows a bullish engulfing pattern,

04:49while the RSI is above the 50 line, you take a buy position.

04:54It's the same for short positions as well.

04:57If the price is below the 200 EMA, while the candle shows a bearish engulfing pattern,

05:03while the RSI is below the 50 line, you take a sell position.

05:10Now, for our exit strategy.

05:12Once you've entered a trade, you want to set your stop loss below your entry candle here,

05:17and set your profit target at 2 times your stop loss.

05:21So, now, let's look at this strategy in action.

05:25In this chart, we can see that the price is above the 200 EMA, meaning that the price is on an uptrend,

05:31and so we only take signals from the bullish engulfing pattern.

05:35Next, we can actually see a bullish engulfing pattern formed.

05:40However, we can see that the RSI is still below the middle line, so you want to ignore this signal.

05:47Next, we can see that another bullish engulfing pattern has formed,

05:52but this time, the RSI is already above the middle line.

05:56So, this is our entry signal, and you want to take a buy position here.

06:00Now, for your stop loss, you set it below your entry candle here,

06:05and for your profit target, you set it at 2 times your stop loss.

06:09And so, as you can see, this trade ended up being profitable.

06:15Let's look at another example.

06:17In this chart, we can see that the price is below the 200 EMA,

06:22meaning we only take signals from the bearish engulfing pattern.

06:25Then, we can spot that a bearish engulfing pattern has formed,

06:30and the RSI is below the middle line.

06:33And so, you want to take a sell position here.

06:36Next, you set your stop loss above your entry candle,

06:40and for your profit target, you set it at 2 times your stop loss.

06:45And so, this ended up being a profitable trade.

06:49Now, I'm going to give you 5 quick tips to make you a better scalper.

06:54The first tip is that you don't need to take every trade.

06:59When you're scalping, you will find situations where you would receive multiple entry signals.

07:04If this happens, you don't need to take all of them.

07:08Only take trades that you are able to manage.

07:11Because it's very hard to handle multiple trades at once, especially when you're scalping.

07:16The second tip is don't risk too much capital.

07:19You never want to risk more than 1% of your capital per trade.

07:23I recommend risking only 0.5% each trade.

07:27The third tip is knowing when to stop trading.

07:30When you're scalping, you can easily find yourself trading for hours and hours.

07:35And over time, you will get tired and lose focus.

07:39So, it's very important to know when to take a break.

07:42You don't have to worry about missing entry signals.

07:45Because there will always be other opportunities in the market.

07:48The fourth tip is making sure you're using a broker with a low spread.

07:53This is actually very important because when you're scalping, every single pip counts.

07:58And if you're using a broker with a wide spread, you will have a hard time making a profit.

08:05And the last tip is sticking with one pair.

08:09When you're scalping, entry signals will appear very very often.

08:13So, you don't have to worry about missing entry signals from other pairs.

08:17Just choose one that you're comfortable with and stay with it.

08:21So, I just revealed 2 profitable scalping strategies that you can immediately trade right now.

08:28And all I ask for in return is for you to take 2 seconds of your time into liking the video and subscribe to the channel.

08:35It literally takes only 2 clicks but it means so much to me.

08:39And you can also check out my other videos as well.

08:42So, thank you guys for watching and I'll see you in the next video.

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