Forex Scalp Retracement Forex Scalping Strategy

August 8, 2016

506

Forex Scalp Retracement

This is a system that is easy to use using a 5 mintue timeframe on a GBPUSD and EURJPY chart.
Indicators needed for this strategy are listed as follows:

55 EMA
MACD set to 4, 9, 6

For LONG entry:

The closing price must be above EMA 55 on H1 chart;
The closing hourly candlestick must be a bullish candlestick
MACD must show a positive divergence or show a higher low bar.
Switch to 5 min if above conditions are met.

Scenario A:

Look for 38% or 50% Fibonacci retracement (support) from the recent swing low on hourly chart.
Open long position if the candlestick went below but closed above the retracement level (either 38% or 50 %);
set stop loss at 61,8% or recent swing low if your risk per trade allows.

Scenario B:

If the price action does not retrace to 38% level, open long position at the break of the previous hourly candle’s high;
set stop loss at 61,8% or at recent swing low.

For SHORT entry:

The Closing price must be below 55EMA on The Hourly Chart;
The closing hourly candlestick must be a bearish candlestick;
MACD bar must cross below the Signal EMA on the hourly chart and color must be red.
Switch to 5 min chart after the conditions are met.

Scenario A:

Look out for 38% or 50% Fibonacci retracement (resistance) from the recent swing high on hourly chart.
Open short position if the candlestick went below but closed above the retracement level (either 38% or 50 %);
Set stop loss at 61,8% or recent swing high if your risk per trade allows.

Scenario B:

If the price action does not retrace to 38% level, open short position at the break of the previous hourly candle’s low;
Set stop loss at 61,8% or at recent swing high.

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