This isn’t a complicated system at all. It uses only highs and lows, and the closing of range bars. I come up with this system because I needed a very basic system to scalp with extremely easy to follow rules. When your scalping the forex market you don’t have time to check 10 different signals to see if they all line up. The market moves way to fast to think about things for a couple minutes.
First thing you need to run this system is a range bar chart. There are free ones on the net for mt4 and some charting platforms offer range bars right in there charting options. I personally paid a small amount of money for my mt4 range bar software, only because I tried a few free ones and didn’t really like them.
After you have your range bar chart set up your going to want to add a momentum indicator to your chart. I have 3 levels on mine, 100.05,100, and 99.95. When price is between these areas it is usually range bound. If price is above or below these levels then it is usually a good time to trade.
This scalping system uses a lot of user intuition and “gut feeling.” I’m personally not very good with it because I have a hard time following rules scalping, even if there super simple! I guess that’s why I specialize on the daily charts long term. I am getting better with this range bar system though, it just takes practice and patience.
So here’s the rules.
- price is making lower lows
- price making lower highs
- momentum below 100
- 1 or more bullish bars close
- when bearish bar close enter
- price making higher highs
- price making higher lows
- momentum above 100
- 1 or more bearish bars enter
- when bullish bar close enter
- half when bar closes in your direction
- other half at break even or wherever price stalls
- really at your own discretion depending on market mood
Well that’s the system, its super simple and when you get good with it there’s lots of little tricks that can help you to make pips. You can often exit a trade and reverse to make your loss back, even better if you can hedge on your platform its easy to win trading with range bars.
I hope you enjoyed my simple forex scalping strategy, Happy Trading.