This strategy allows us to trade candles that we believe are moving and ignore consolidation.
There is often a period of time when prices don't move much at the beginning of a new candle. Many traders are savvy enough to know that when a candle forms, other traders will make decisions based upon the type of candle formed. Nobody would know what the next step would be. The direction that price takes may be the same as the previous candle or reverse. Consolidation is a brief period of uncertainty for the market.
We will use 7 and 14 Simple Moving Averages (SMA) to achieve this. We will also target only five (5) pip. A 5-pip target is possible if the candle has momentum.
This is a scalping strategy but we will still use the 1-hour timeframe. Because traders tend to look at hourly candles more than the shorter timeframes, this is because they are more likely to be able to see the patterns of the candle. If momentum is present in the preceding hour, traders would instantly enter the market based on candle patterns and not waiting for the consolidation phase. This volume would increase momentum.
Timeframe Any
Currency Couple: any
Trade Session: any
This trading strategy can be used with a reputable broker.
How do you trade with the 7 & 14 SMA Forex Trading Strategy?
This strategy is based on the way a candle opens or closes relative to the 7 and 14 SMAs.
Setup:
- The 7 SMA should be higher than the 14 SMA.
- The signal should indicate that candle price should open between the 7 SMA (or 14 SMA) and the signal.
- The price of the same candle should be close to the 7 SMA.
- The signal candle should have a very small wick.
- The 14 SMA should not be lowered.
- You can enter immediately when the candle is open.
Take Profit The target take profit price should not exceed 5 pips of the entry price
Setup:
- The 7 SMA should not be higher than the 14 SMA.
- The signal should indicate that candle price should open between the 7 SMA (or 14 SMA) and the signal.
- The price of the same candle should be below the 7 SMA.
- The signal candle should have a minimum of one wick.
- The 14 SMA should be kept at the maximum height of the candle.
- You can enter immediately when the candle is open.
Take Profit The target take profit price should not exceed 5 pips of the entry price
How do I download and install an indicator?
These steps are required to install the indicator onto your MT4 platform.
- At the bottom of your screen, click on the " download indicator" button.
- Save the file to your hard drive.
- Move the files to the MT4>Indicator directory in the MetaTrader4 software program file directory.
- Start your Metatrader platform.
- Navigate to " Indiators."
- To apply the template " 7 and 14 SMA Scalp Forex Trading Strategy", click on it.
Note: This indicator was created by Neil, Bangladesh. AtoZ Markets has no copyrights to this trading tool.
Do you need to use the 7 and 14 SMA scalp Forex trading strategies on your own?
This article will help you understand the strategy before you begin to use it.
Our in-house trader Dr Yury Sfronau is a PhD in Economics Sciences. He gives you daily signals to buy or sell stocks, forex, and cryptocurrencies. It's not based on one strategy that has been proven successful.
Since 2015, his trading strategy which relies on non-linear dynamic model has earned him more than 65 000 pip profits. There are strong buy signals in several markets right now that you don't want miss.
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