Best Scalping Trading Strategy: The Simple Scalping Strategy
Thanks for stopping in! We have had many requests for the best scalping system for quite a while now. So we decided to get on board and give you easy scalping technique that we think is one of the best scalping strategies you can find. We developed a strategy that we call The Triples S or (Simple Scalping Strategy). The Triple S is easy to learn and with a little practice could be a great addition to your scalping techniques and the best scalping method you have. This particular strategy is included in our best trading strategy series we created to help traders learn to trade successfully.
The Simple Scalping Strategy has been exclusively designed for scalping but if you would like to give it a try on a 1 hour or 4 hour time chart you can try and let us know how it works by commenting below!
We feel it works best with the 5 minute and 15 minute time chart so that is what we recommend. You can try this with a 1-minute scalping strategy as well but we will focus on M5 and M15 charts.
This is a highly profitable forex scalping strategy that uses a very accurate scalping indicator.
The simple scalping strategy uses the volume indicator coupled with price action analysis.
Let’s talk about this indicator for a bit, shall we?
What is the Volume indicator for Forex? How does it Work?
To start, here is what it looks like:
The volume indicator could be interpreted as the “fuel tank of the major trading machine.” Some argue that the volume indicator cannot be used with trading forex because there is no “central exchange” so how can it be read effectively? Another argument is that the volume that you see for Forex is actually the “Tick” volume that occurs so you are not seeing the entire volume that is being traded at the time like you would with stocks.
Our argument to that is tick volume is measured by how much the price is has ticked “up” or “down” in that particular candle bar. So the more people are getting in at the time, the longer the volume line will become because there will be more movement in price action with all of those entry orders flying in. So it makes sense that the volume indicator is, first of all, very accurate, and second has no real lag to it. This is because it is currently showing you what the price action is doing the number of “ticks” on that candle bar which results in the bar looking like this:
So let us get to it!
The Triple S Simple Scalping Strategy Rules-Best Scalping System
Side Note** Since you are all the way down to an M5 or M15 time chart the price is very sensitive to any and all news. Because of that, I would not use this strategy 30 minutes before and after a major news announcement. To find out if there will be a news announcement just check here to confirm!
Rule 1: Apply Best scalping strategy indicator: Volume
Any trading platform is okay because the Volume Indicator comes standard on all trading platforms.
Step 2: Go to an M5 or M15 Time Chart
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 is showing you any trend, reversal, or just stagnant price action. The way it works is that if the volume indicator increase, so will the price action because there is a plethora of interest in that currency pair.
Once you see a drop off in the Volume indicator, you know that there are less “ticks” and hence less interest in that trend. The strategy we want to focus on mainly is trend trading. You can use the volume indicator for reversal trades, but that’s not something we are interested in with this strategy.
Step # 3 Of the Best Scalping System is Analyze Volume Indicator: Look for a healthy Uptrend or Downtrend, Pullback in Price action and Volume to Slow Down or “Quiet down.”
The volume indicator should tell you an enormous amount of information. If you see the volume indicator do this:
You know that the trend is either:
A. Dying and heading for a reversal.
B. Take a break before continuing to the upside.
In this case, it took a break. There were fewer buyers and sellers at the time (traders making trading decisions) before it then picked up and continued to the upside. Our strategy takes advantage of this pullback before the price action continues upward in this example.
So in this analysis step to the strategy you need to check out the volume indicator and based off of what you now know make a good trading decision based off of the current price action.
Using our example, you should see a steady uptrend followed by a pullback/retracement phase.
Step # 4 Once you see the Volume Rise/Spike (after if slowed down) Make your Trade Decision Based off of Current Price Action: Best Scalping System
This part is all up to you. There is not “line crossing,” “arrow appearing” or “a small voice telling you to buy now!” You have to understand a little bit about how the price action works before you decide on your entry. Using our example, the Volume indicator shot up drastically meaning that traders are getting in on the action and thus driving the price upwards!
Take a look:
Once you see this Big Spike or See that the Volume indicator is showing that there is some action heading your way you want to get ready to enter this BUY trade because all things are pointing upwards.
Entry/Exit Strategy for the Simple Scalping Strategy
With the current structure of this trade, it made sense that since we saw our “spike” in the volume indicator and it broke this small retracement trend we pulled the trigger and entered a buy!
Your exit strategy is simple. You go for 10-20 pips. Also, You Place a 5-8 pip stop loss. Once you are up 10 pips move your stop loss to 5 pips to lock in small profit (unless the spread is very large which you would most likely break even then.)
This 20 pips in under 5 minutes will not happen every time, but when it does it will surely make you smile 🙂 The reason we say go for 10-20 pips is for cases like this where you see a big jump after the retracement of the main trend. You do not want to get out too early.
Consider this strategy on any of the major currency pairs and you should see some great results!
**The rules for a SELL trade will be exactly the same, only opposite on your chart. (I.E. instead of starting with an uptrend first it will be a downtrend instead)
Simple Scalping Strategy could be a powerful 1-minute scalping system as well and if you try in on the time frame let us know your results! We could 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, a can confirm a reversal, and it can show us when there are less interest between buyers and sellers. With this best scalping system, you will find that it’s not only easy to Scalp but also will find a high win percentage strategy and a chance to grow your account very quickly. If you are not a fan of scalping and enjoy swing trading or day trading strategies make sure you check out the Rabbit Trail Channel Strategy that will show you how to grab 50 pips at a time with high probability of winning!
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