TLDR: This is a step-by-step ultimate forex scalping strategy with an insane win-rate that allows you to spot trading opportunities almost every day.

We will teach you how to easily catch a 10 pip trade within just 30 minutes.

This strategy has been extensively back-tested on different timeframes, trading pairs, and indicators, resulting in carefully selected rules that have proven success.

We have tested this strategy on different trading pairs and found it to be most effective on the EUR/USD pair.

Equip yourself with this strategy, and you could easily adjust and reuse it on other markets, including stocks and cryptos as well.

This is like a no-brainer. Please read until the end.

Step 1: Launch Your Chart and Select the Euro Dollar Pair

To begin, open your chart on TradingView and select the Euro Dollar pair.

Step 2: Enable Multi-Chart Mode and Sync Symbols

Enable multi-chart mode in TradingView to display three charts simultaneously: the 1-minute timeframe, 5-minute timeframe, and 15-minute timeframe.

This setup will help you gain a daily bias and forecast the market’s direction. Additionally, make sure to sync the symbol, crosshair, and time across different layouts for better visibility.

Step 3: Identify the Trading Range with Kill Zones

Label the London Killzone (2am to 5am New York time) and the New York Killzone (7am to 10am New York time) on your chart using vertical lines.

These zones experience high trading volume and volatility, presenting excellent opportunities for quick profits. While the strategy works in other time periods, you may have to wait longer for price movements.

Step 4: Add Indicators — Moving Average Ribbon and TradeDots

Add the Moving Average Ribbon and TradeDots indicators to your chart.

The Moving Average Ribbon provides insight into market trends, while the TradeDots indicator acts as a confirmation signal.

Configure the Moving Average Ribbon to display the 20 EMA, 50 EMA, and 200 EMA. Adjust the color and line thickness for better visibility. They are used to quickly identify where the market is heading to, confirming our daily bias.

Launch the TradeDots indicator and apply both indicators to the entire layout. It is a reversal indicator that labels market pivots with real-time price action analysis. It would be used as a

Start your TradeDots indicator free trial

Now, let’s apply these indicators to the entire layout by right clicking the empty space on the chart and click “Apply these indicators to entire layout”

Step 5: Label Critical Price Levels

Identify critical price levels, including support, resistance, and pivots, by using horizontal lines.

These levels indicate where traders place their stop loss and take profit orders. When the price approaches these levels, it may experience a rebound or breakout. By observing price action and market bias, you can confirm the validity of your trade.

TradeDots is an incredibly useful tool for identifying important price levels. By connecting these dots, it can help you pinpoint areas where price reversals are likely to occur.

Once you’ve identified these areas, you can draw a rectangle box or a horizontal line to highlight the significance of these price levels.

Notes: prices in the Forex market tend to fluctuate more frequently. As a result, you may encounter false breakouts that can stop you out of a trade. To mitigate this risk, it is advisable to always enter a trade at a favorable position and set a stop loss slightly below the critical price level. Never rush into trades and always exercise patience and caution.

Step 6: Confirm Daily Bias and Market Trends

Before entering a trade, confirm your daily bias and market trends by analyzing the three EMA lines.

In a clear downtrend, the 200 EMA, 50 EMA, and 20 EMA will align from top to bottom. The width between these lines provides insights into the market’s acceleration and potential reversal.

Ensure that the EMA pattern appears in the 1-minute timeframe for scalping in the short term. However, avoid trading against the trend in higher timeframes.

Combined with the critical price levels labeled in the last step, we can determine whether the price will break out from those levels or reverse. A breakout indicates that our trade is valid and the trend is still strong.

Use TradeDots as the final confirmation signal. If TradeDots shows an opposite market signal, which goes against your trading direction, then do not enter the trade. This means that you would be entering at a disadvantageous position.

You need to assess whether you are willing to take the risk of entering early to avoid missing out on the momentum, or if you prefer to minimize your risk by being patient and waiting for a more favorable buying position.

Step 7: Stop loss and take profits

After entering a trade, set a take profit point 10 pips from your entry point and a stop loss at the 200 EMA on the 1-minute or 5-minute chart. Adjust the stop loss strategy based on the behaviors on the asset pair you are trading.

Consider setting a time stop at around 45 minutes to avoid being stuck in a trade for too long. Be mindful of critical levels that may cause price fluctuations.

Step 8: Avoid Trading Against the Trend after Closing your position

Once you close your position, refrain from trading against the trend immediately. Take time to analyze the market, gather information, and plan your next trade. Overtrading can lead to missed opportunities and losses

Bottom Line

This ultimate forex scalping strategy has been tested and proven effective. Feel free to incorporate it into your own trading system and share your results with us through email.

Remember that each step and rule serves as a guideline, and you can adapt them to suit your trading style.

Trading is a continuous learning process, so refine the strategy to make it comfortable and profitable for you. If you found this blog helpful, share it with someone you love and win together.

About TradeDots

TradeDots is a TradingView indicator that identifies market reversal patterns through the implementation of quantitative trading algorithm on price actions. Try our 7-day FREE Trial to level up your trading game.

Set up your personalized trading alerts using our Telegram Bot, so you can now trade effortlessly without gluing to your screen. Join us now to experience TradeDots across all trading assets!

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Disclaimer: The information provided in this article is for educational purposes only and should not be considered as financial advice. Trading involves risk, and it is important to conduct thorough research and seek professional guidance before making any investment decisions. Prospective investors are encouraged to perform their own due diligence or consult a financial advisor before making investment decisions.