Best Scalping Strategy: Simple Scalping Strategy

Thank you for stopping by! We have had many requests for the best scalping strategy over the years. We decided to get on board and give you an easy scaling technique. We think this is the best scaling system you can find. This strategy is called  The Triples or (Simple Scaling Strategy). Triple S is easy to learn. With practice, it will become a great addition to your scaling strategy. It might even be the best extension method you have. This strategy is included in our best trading strategies series . We created this series to help traders succeed.

While many of our favorite strategies focus on maximizing your potential for big profits,  scalping  focuses on finding lots of small profits in a short period of time. Instead of focusing on quality of trades, scalpers are more concerned with quantity.

 

 

What is scaling?

Scalpers can execute thousands of trades in a given trading period. There are three characteristics of the scaling strategy : short positions, small profit margins, and high leverage. Speculators try to target price gaps and other short-term trades, loopholes, allowing them to quickly turn around a large position for a profit.

To find scalping opportunities, you will need to start by choosing a few key technical indicators. These indicators can help you identify when a short-term price gap is likely to occur.

Because investors focus on short-term positions with low margins, the best scalping strategies (like the Triple S strategy mentioned below) require some leverage. We recommend investors to start with a large amount of capital. Opening and closing larger positions allows you to reduce the marginal cost of trading and maximize potential profits.

The Simple Scalping Strategies are designed specifically for scalping. You can try it on 1 hour or 4 hour time chart. Try it out and let us know how it works by commenting below!

We feel it works best with 5-minute and 15-minute time charts. You can try this with 1 minute scalping strategy. But we will focus on M5 and M15 charts.

This is a highly profitable forex scalping strategy that uses a very accurate ratio indicator.

Simple scalping strategy using volume indicator combined with analysis price action .

Let’s talk about this indicator a bit, shall we?

What is Volume Indicator for Forex? How it works?

For starters, this is what it looks like:

 

 

The  mass index  can be understood as “the fuel tank of a large commercial machine.” Some argue that the volume indicator cannot be used with trading in the forex market. This is because there is no “central exchange”, so how to read it efficiently? Another argument is that the volume you see for Forex is the volume of the Tick Tick occurs. This means you don’t see the full volume being traded at the moment like you do with stocks.

Tick volume is measured by how much price has ticked Up or down in that particular bar. So the more people join at that time, the longer the volume line will be. This is because there will be more movement in the price action with all those entry orders. So it makes sense that the volume indicator is first of all very accurate and secondly there is no real lag to it. It is currently showing you what price action is doing the number of ticks on that bar. This results in the bar looking like this:

 

 

Scalpers use  volume indicators   for many reasons. Volume and price have a very strong, short-term relationship, but changes in volume often precede prolonged price movements. Paying attention to volume indicators makes it possible to capitalize on these movements before they actually happen.

Using the candlestick chart can also help investors get a quick look at the market. Candlestick charts contain more information than simple price charts (like daily price ranges), allowing traders to understand current price trends. Below, we will discuss our one minute scaling strategy.

 

 

One minute expansion strategy

Scaling is a trading strategy that usually works best using the short-term timeframe . Contrary to positional trading strategy, scalping focuses on making many profitable trades with noticeably small margins

Scaling is ideal for day traders and individuals with the ability to make important decisions in a short period of time. Usually, you won’t have much time to conduct thorough fundamental and technical analysis while scalping. Moving averages are constantly changing and prices are constantly being adjusted.

Whether you are scalping EUR:USD, other currency pairs or assets other than forex, it is important to pay attention to the details. Scaling typically occurs in 5-20 minute increments. However, if you are trying to execute a one-minute scalping strategy, the volume indicators, M5/M15 time chart and price action trends should be the first thing you look at.

The key to scalping while using short timeframes is to identify price changes before the rest of the market has a chance to act. You should also be willing to accept very low profit margins. Earning less than 1% for a given action will usually still be in your best interest. Because of this, many scalpers are able to execute tight stop-loss and limit orders over time. Also, learn more about best hedging strategies here.

Now, come to it!

Simple Scaling Strategy Rules Triple S – Best Scaling System

Side note ** Since you are completely down on the M5 or M15 time chart, price is very sensitive to any and all news. Therefore, I would not use this strategy 30 minutes before and after a big news announcement. To find out if there will be a news announcement just check here to confirm!

Rule 1: Apply the best scalping strategy indicator: Volume

 

 

Any trading system platform will do as the Volume Indicator comes standard on all trading systems (platforms).

Step 2: Go to M5 or M15 . Timeline

In this particular M5 time chart, we are looking at a USDJPY pair.

What you want to look for first is if the volume indicator shows you any trends, reversals or stagnant price action. If the volume indicator is up, so is the price action. This is because there is a lot of interest in that currency pair.

Once you see a drop in the volume indicator, you will know that there is less ticking and therefore less interest in the trend. The strategy we want to focus on is mainly trading with the trend . You can use the volume indicator for reversal trading. But that’s not what we care about with this strategy.

Step #3 of the Best Scalping System is the Analysis of the Volume Indicator: Look for a Strong Uptrend or Downtrend. Look for a pullback in Price action and wait for Volume to slow down or Slow down.

The volume indicator will tell you a huge amount of information. If you see a volume indicator, do this:

 

You know that the trend is:

A. Dying and heading for a reverse .

B. Take a break before continuing the price increase.

In this case, it rested. There are fewer buyers and sellers at that time ( traders make trading decisions ). Then they picked it up and kept going up. Our strategy takes advantage of this before the price action continues upward in this example.

 

 

So in this analysis step for the strategy you need to check the volume indicator. Based on what you know now, make good trading decisions based on current price action.

Using our example, you will see a steady uptrend followed by a pullback/retracement phase.

Like this:

 

 

Step #4 Once you see Volume increase/spike (after slowing down) Make your trading decision based on current price action: Best Scaling System

This part is all up to you. There is no crossing, an arrow appears, an appearance or a small voice tells you to buy now! You have to understand a bit about how price works before you decide to enter. Using our example, a strong increase in the Volume indicator means that traders are getting in on the action and thus pushing the price up!

Watch:

 

 

When you see this spike or see that the volume indicator is showing that there is some action in the way you want to be ready to enter this BUY trade because everything is pointing upwards.

In/out strategy for simple expansion

Given the current structure of this trade, it makes sense that since we saw our spike in the volume indicator and it broke this minor retracement, we triggered and bought !

 

 

Your exit strategy is very simple. You go in 10-20 pips. Alternatively, you place a stop loss of 5-8 pips. When you go up 10 pips, put your stop loss by 5 pips to lock in a small profit (unless the spread is so large that you will most likely break even by then.)

 

 

These 20 pips in under 5 minutes won’t happen every time, but when it does it will definitely make you smile The reason we say go 10-20 pips is for cases like this when you see a big jump after the retracement of the main trend. You don’t want to go out too early.

Consider this strategy on any major currency pair and you will see some amazing results!

** The rules for the SELL trade will be exactly the same, just opposite on your chart. (IE instead of starting with an uptrend first, it will be a downtrend instead)

Other technical indicators for scalping strategy

As you can see, our Simple Scalping Strategy mainly uses volume indicators and candlestick charts. We developed this strategy knowing that these indicators give traders the tools they need to make quick and accurate trading decisions.

Because the ratio is driven by technical analysis, you should also consider using other technical indicators .

  • Exponential Moving Averages : These moving averages have been specially weighted to react more sensitively to recent price movements. When using the EMA histogram, keep a close eye on potential crossovers.
    Moving Average Convergence Divergence (MACD) : This trend-dependent momentum indicator balances 26 cycles and 12 cycle moving averages. Despite what you may assume, the MACD indicator can be used in any trading timeframe.
  • Bollinger Bands : These handy bands contain most of the price movement (about 95 percent). Use these bands to help identify when breakouts and trend reversals are more likely.
    Relative Strength Index : index RSI is a momentum indicator that measures strength and resistance levels on a scale of 1 to 100. This can help limit the possible risks of openings. wide.

These indicators will help you execute the scalping strategy with better confidence. As long as you can stick to our strategy and carefully include stops, scalping is a trading strategy that will develop naturally.

Conclusion – Best Scaling Strategy

A simple scalping strategy can also be a powerful 1 minute scalping system and if you try on the timeframe, let us know your results! We can use the best scalping strategy indicator (volume) and have a whole basket of strategies to use with it. The reason is that it can confirm a trend, one can confirm a reversal and it can show us when there is little interest between buyers and sellers.

With this best scalping system you will find that it is not only easy to scale but also find a high win rate strategy and the chance to grow your account very fast. If you are not a scalper and prefer swing trading or day trading strategies, make sure you check out Rabbit Trail Channel Strategy which will show you how to win 50 pips each time with a high probability of winning !