GBPUSD is most favorite pair on trading forex. Because little bit complicated and volatile on GBPUSD, most forex traders like using these pairs with martingale, averaging and all of most traders use this pair with scalping. Today I’ll share this scalping strategy on GBP/USD, EURUSD, EURJPY, USDJPY, GBPJPY, and USDCAD pairs. For more details, keep reading this article.
The idea of this trading concept is for a swing trading system, but after I’ve tested this forex strategy in my real accounts it’s very effective too using this system to become a forex scalper and intraday too. Let’s begin.
Scalping Forex Trading Setup
Trading pair: GBP/USD, EURUSD, EURJPY, USDJPY, GBPJPY, USDCAD
Time frame: H4- 5 minute chart
Indicators:
Alligator default setting (jaws period = 13 (blue) , teeth period = 8 (red), lips period = 5(lime))
Fractals
Awesome Oscillator default
Trading rules
This trading strategy follows the trend so we’ll ride the major trend from the big time frame and in this big time frame, we use h4 or daily time frame.
First, we need to define what is a current major trend in a four-hour time frame. This is how we determine a current major trend in a big time frame. Remember to read the current major trends first at least on H4 time frame or Daily. This is a MUST. Because this scalping trading system is based on TREND FOLLOWING so NEVER OPEN the counter-trend. My trading recommendation is never to look for forex signals in 1-minute time frame.
DOWNTREND IF :
1. Price break low previous fractals
2. Appear new top fractals as new strong resistance
3. Lips (green line), teeth (red line) significant strong breakdown jaws (blue line)
4. Awesome indicator below zero level and gives a red color
UP TREND IF :
1. Price break high previous fractals
2. Appear new low fractals as new strong support
3. Lips (green line), teeth (red line) significant strong break up jaws (blue line)
4. Awesome indicator above zero level and gives a green color
See the picture example below.
After we can see what exactly of current trend is, then we look at the signals entry on a small time frame in this case we look at the 5-minute chart to get the fastest momentum, so we can ride the trend. We can use this strategy to get only several pips 15-35 pips or even better up to 100 pips or more if the trend has a big power to go. So, here is how we got the signals in 5-minute time frame :
SELL SIGNALS IF :
1. Price break out previous LOW of fractal
2. Lips (green) and Teeth (red) CROSS DOWN to jaws (blue) significantly
3. Awesome Oscillator RED color and BELOW zero level
4. Current Trend on H4 or Daily Time frame MUST DOWN TREND
See example below :
BUY SIGNALS IF :
1. Price break out previous HIGH of fractal
2. Lips (green) and Teeth (red) CROSS UP to jaws (blue) significantly
3. Awesome Oscillator GREEN color and ABOVE zero level
4. Current Trend on H4 or Daily Time frame MUST UP TREND
Happy scalping trades! Once again follow the rules, practice is one key to success in trading forex to get consistent profits. I hope this scalping forex strategy guide above can be useful to us to get a stable income to fulfill a living cost.
Here is another way and one of my favorite forex scalping strategies that can apply to GBPUSD.
Learn too about How To Trading Like the Pros: Smart Money Concept Entry Confirmation Strategies