This is a simple forex strategy that works without using any indicators at all. This strategy can also be very profitable as well. Many forex strategies are free and there are lots of them that use the Triple Screen Trading system by Alexander Elder as their basis.This is our forex scalping strategy too. You can achieve good profits by using a good approach to money management along with this simple strategy. You can use any pair of currencies of your choosing to trade.A reliable forex broker that uses the MT4 4 trading platform should be selected to use this forex scalping strategy.
A Description of a Simple Forex Scalping Strategy
Trading with this strategy is simple as long as you follow these three rules:
* The H1, M30, M15 and M5 timeframes can be used to check the candles
* If all four timeframes are showing white candles then you can open up a buy transaction
* You should open up a sell transaction only if all of the 4 timeframes have black candles
We can take a look at a sample of using the forex strategy below:
Using the Simple Forex Scalping Strategy
This forex trading strategy can used once the MT4 4 trading terminal has been prepared. The same currency will need to have four windows made for it (see picture). Select 'Window' and then 'Tile Vertically' to arrange the chart. Following the preparation, you can open up the transaction after waiting for the signal.
This transaction opening process can be described in detail:
* Looking at the picture will show you that the candle that had opened at 3:00 on the H1 timeframe was black when it was closed
* Now we see that at 3:30 on the M30 timeframe a candle was opened and it was also black when it closed
* On the M15 timeframe, the candle that had been opened at 3:45 was also black upon closure
* Lastly, the candle that was opened on the M5 timeframe at 3:55 was black
As the conditions for trading with this forex strategy were met, market price can be used to open up buy transactions. Of this is only an example; but should H1 and M30 show candles that are black while M15 has a white candle, you should not proceed with this transaction. These rules should always be followed if you want to ensure successful trades. This applies not just to this strategy but all forex trading strategies will be profitable if you follow rules.
Rules when Placing Take-Profit and Stop-loss
Placing take-profit and stop-loss for this forex strategy has only two rules:
* 15- 20 points is where the stop-loss is fixed. Here you should be getting a minimum of 30-40 pips profit. As soon as the price gets to +15 pips, the transaction transfers to break-even or half the position is closed. Like a lot of other forex strategies, this simple forex strategy uses trailing stop.
* A stop loss can also be placed below (above) the close minimum (maximum). Here the take-profit is 2-3 times the protecting stop order. The profit is fixed in the same way as previous