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200 EMA Forex Scalping Strategy Using Stochastic

200 EMA Forex Scalping Strategy Using Stochastic

This is an easy Forex Scalping Strategy (suitable for beginners) using 200EMA and Stochastic Indicator together to enter buy or sell trades.

Recommended Timeframe : 5Min ( This is a forex 5 minute scalping strategy )
Currency Pairs: GBPUSD, USDJPY, EURSUD, AUDUSD, USDCHF
Forex Indicators Used: 200 EMA and Stochastic indicator with default settings

What it the Purpose of 200 EMA?
The main purpose of 200 EMA is to find the Main Trend. If price is above the 200 EMA then it’s an uptrend and you simply need to look for buying opportunities. If price is below the 200 EMA then the market is in a downtrend and as a result you would need to look only for selling opportunities.

What it the Purpose of Stochastic Indicator?
As, Stochastic indicator is an oscillator it tells you when the market is oversold and when it’s overbought. You sell only when the main trend is down and when the stochastic lines have gone past above the 80 line and are beginning to point down at the close of the candlestick (This is the overbought zone). You buy only when the main trend is up and when the stochastic lines have gone down past the 20 line and are beginning to move up at the close of the candlestick (This is the oversold zone).

Since, this a Simple Forex Scalping Strategy the trading rules are equally simple.

Buy Scalping Entry Rules:


Price must be ABOVE 200 EMA . This would indicate towards our Main Trend being : BULLISH
Now check to ascertain if stochastic lines have gone BELOW 20 line and now MUST BE POINTING UPWARDS.
Immediately activate a Buy Market order.

Forex Scalping Exit Strategy For Buy Trades
Now you need to place your Stop Loss at least 15-20 pips away.
You would now also need to set your Take Profit Target Level at 20 to 30 pips.

200 EMA Forex Scalping Strategy Using Stochastic: Sell Entry Rules

Sell Scalping Entry Rules:

Price must be BELOW 200 EMA . This would indicate towards our Main Trend being : BEARISH
Now check to ascertain if stochastic lines have gone ABOVE 80 line and now MUST BE POINTING DOWNWARDS.
Immediately activate a Sell Market order.

Forex Scalping Exit Strategy For Sell Trades

Now you need to place your Stop Loss at least 15-20 pips away.
You would now also need to set your Take Profit Target Level at 20 to 30 pips.

Since, this is a Trend Trading Scalping Strategy it is advisable to only use this strategy during volatile sessions like London Session or the NewYork Session. It is recommended to avoid trading during Asian Session altogether. And also during High Impact News events as such events can lead to volatility in both the directions thereby closing out your trades at loss.

This is perhaps one of the best scalping strategy in forex and pretty simple scalping strategy too.

Tags: #forexscalping #scalping #earn #fx #fxtrading

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