In order to increase trading performance, traders often use different methods. One of the most effective forex strategies to increasing profit margins is to increase the number of transactions by reducing the time frame. The more often the strategy appears, the better the result is for the same limited time period.
This explains the growing popularity of "Scalping" strategies. Scalping is the name of the method of trading on very short time frames. The key lies in the minutes, because the shorter the time frame, the harder it is to predict, and the longer time frame is not the ideal type to use scalping.
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Naturally, pursuing quantity will incur a loss of quality. Even completely unimportant factors can affect the price movement using a 60-second day candle. Therefore, it is necessary to try simple strategies and indicators, which have very clear usage. Oscillators and trend indicators are extremely suitable to go together to look for reversals.
As mentioned above, most forex scalping strategies are built on the use of classical oscillators, so the most popular trading algorithm among scalping is a variant of Multi-Stochastic. they are built based on filtering signals from each other from two tools.
In the cult of trading algorithm, two or more stochastic with different cycles are used. With this approach, the false signals are filtered out, they are signals emitted in fast stochastic, but do not lose the rate of occurrence of the settings.
In Multi-Stochastic can use different indicator parameters. The quantity is also at the discretion of the trader. In addition, there are new variations of the algorithm on specialized forums that use the same classical oscillators (RSI, CCI, AO, Momentum, etc.).
The input signal is when the oscillator lines of the stochastic are together. Sell in oversold areas; Buy in oversold areas. Moreover, the fast Stochastic signal is a preliminary signal, while the slow Stochastic signal is the filter signal.
To increase the quality of the incoming signal, the chart can add other oscillators or add Stochastic. The profitability of this best forex strategy is quite high, helping to use the Martingale principle and other risk insurance nets.
Transaction algorithm based on the use of Bollinger channel. In the classic version of the strategy, buy / sell signals when they are outside the price area according to the chart. However, below is a modified version of the algorithm with the average of the chart being a simple moving average.
As soon as the upper band of the Bollinger channel is crossed by an oscillator line, a sell transaction needs to be opened. And vice versa, when there is a line below the threshold, this is a buy signal.
Strategic signals can be filtered by oscillating lines or candlestick patterns. The forecast is made for the next candle, so the waiting period should not be longer than the time frame of this one minute strategy.