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Stochastic, Bollinger, LWMA Forex Scalping Strategy
This is a scalping strategy that works on a 5 minute timeframe and is applicable to all currency pairs. The most volatile pairs would be GJ, GCHF, EJ and the major pairs are EU, AU, GU.
Forex Indicators:
- Stochastic (5, 3, 3), Stochastic (18, 5, 3)
- 2 LWMA H/L (White), 40 LWMA Close (yellow),
- Bollinger Bands (20, 2).
- Pivot indicators.
Long Entry:
- Stochastic 5, 3, 3 must be greater than 50 and 50 must be greater than stochastic 18, 5, 3.
- 2 LWMA H/L is above middle band of the bollinger Bands and above 40 LWMA .
- If Stochastic is overbought, there shall be no trade.
- Stochastic must retrace on the 50 level to re-enter.
Short Entry:
- Stochastic (5,3,3) is less than 50 and 50 is less than Stochastic (18, 5,3).
- 2 LWMA H/L is below middle band of the bollinger Bands and below 40 LWMA .
- If stochastic is oversold, there shall be no trade.
- Stochastic must retrace on the 50 level to re-enter.
Exit position:
Set stop loss at 10-12 pips or previous swing.
Profit Target: First at levels pivot, or predetermined Profit Target 6-9 pips Majors pairs, 9-15 pips volatile pairs.
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