Scalping 5 Pips On GBPUSD

scalping_gbp_usdGBPUSD is most favorite pairs on trading forex. Because little bit complicated volatile on GBPUSD, most forex traders like using this pairs with martingale, averaging and all of most traders using this pair with scalping. Today i’ll share this scalping strategy on GBPUSD pairs. More detail, keep read this article. This simplified trading system derived from the previous “2 SARs to go” system and is a work of our dedicated scalper – Alex Wakemann. Thank you, Alex! His scalping insights will be published and updated on our pages as we move on. With this Forex scalping system we can get at least 5 pips per trade.

Trading setup

Trading pair: GBP/USD
Time frame: 5 minute chart
Indicators:
MACD (5, 8, 9)
SAR on MACD (0.1, 0.11)
SAR on the chart (0.1, 0.11)

Trading rules

Trade only from 7:30 am EST to maximum 11:30 am EST. Preferred days – Tuesday to Friday.
Once both SARs are in agreement, e.g. suggest the same buy or sell opportunity – enter with either 1 order (to get 5 pips and leave the trade) or 2 orders at once (to chase the market further).
A stop loss is adjusted upon entry to the last but one SAR dot on the chart. If at the moment of the entry there is only one dot on the chart – set stop at this dot.

Profit targets – 1st – 5 pips.
2nd – only when an opposite signal appears – both SARs change direction or when the stop (by that time it is usually a profit stop or at least a break even situation) is hit.
If before that you feel that profits are already high to keep – lock them in earlier.

scalping_gbpusd_sar

Now about exits:
If while keeping an open trade one SAR suggests an opposite trend, but the other does not – stay in trade.
Remember – a stop loss is always at the second nearest SAR dot on the 5 min chart.
With each new SAR dot – adjust stops for all orders to the second nearest SAR dot.

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Why second? I found that very often the first SAR dot can be hit, but the second will hold. At that time I do not move my stop and sit tight until the SAR reverts and I can continue trading.

Additional notes: want even a better entry? Then open an additional 1 minute chart with the same settings and once got a signal from 5 min chart, look at 1 minute. Does the price confirms/moves in your direction or is it going the opposite way (temporarily making small corrections)? With the second option you have a time to wait until the price on 1 minute chart aligns with 5 minute chart.

scalping_gbpusd_entry scalping_eurusd_entry

Happy scalping trades on GBPUSD! Practice is one key to get success on trading forex.

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