Today I will speak about the most interesting and advanced trading strategy – STS (Scalping Trading Strategy). This trading strategy based on using of traditional Forex indicators and their combination. STS is recommended for traders with minimal trading deposit and minimal professional experience, but it successfully can be used for getting significant profit by professional and skilled traders.
Formerly I did not pay enough attention to the usage of scalping strategy in Forex market trading, however, one week of STS using in my trading, concluded it’s performance and good results. During initial trading period – half or one year – trader needs to develop it’s own trading style or trading strategy. It won’t require no special mental abilities, but only observation, perseverance and self-control, and allows traders (especially with a small deposit) not to lose the initial capital. Of course scalping trading strategy is based on trading on short time intervals – 5 and 15 minutes periodicity.
This trading strategy was born on base of usual working in channels and there are no large differences between them, apart from time interval and necessity of permanent monitoring of trading process. Surely, you may automatize all these processes, but not nearly all Dealing Centers allow to do it, because of large pips distance between Take Profit and Stop Loss level (minimum 10 pips). Such situation exclude using of Scalping strategy.
I will organize this article on example of NordFX trading terminal and account.
- So, in order to start trading you should download and install trading platform and fund your account. You may get more information about these topics in my previous posts.
- Pinpoint your attention upon currency pair that makes “channel” about 40 pips. With less pips amount channel you won’t be able to get noticeable profit. On my 1st picture you may see “channel” imaging by red lines. One channel consists of three zones from below and from above of the chart. I will name these parts of our channel like zones of support and zones of resistance.
- When you see two neighboring peaks on your chart you may depict channel in your chart window, or, after some practice – work without additional drawing construction.
- Outermost lines you should draw from the end of bars “shadows”, middle line goes throw outermost points of bar bodies and inner lines should be drawn on the distance 5-10% of the cannel width from middle lines. All these drawing constructions will help to indicate points of order opening or closing. After this prelude, starts real STS actions.
When chart touches middle line in point 2, you should wait for chart revers running and in “zone B” open Buy order. After that , wait when chart touch middle line in point 4, wait for rebound and (right away!) in “zone B-B” (supporting zone) close your position with contemporary opening sell position.
DON’T FORGET TO INDICATE STOP LEWELS, AS IT IS SHOWN AT MY PICTURE 2.
In case your chart won’t reach opposite middle line, just close it by trailing stop. It is very important not to miss a moment. You should always remember that STS needs of your permanent situation monitoring.
This trading strategy allows to wide range of traders (from beginning to professionals) to get considerable profit without using of special indicators or electronic advisers.
You are welcome to amusing and profitable world of Forex trading. I hope my post will help you in this matter.