20 Pips a Day Forex Scalping Strategy comes up with an idea of crossovers in between smoothed and linear weighted moving averages for determining sustainable market trends. According to this strategy, the usual targets are 20 pips per trade. However, it has the potential to bring much more profits when used for long-term tradings.
20 Pips a Day Forex Scalping Strategy offers great flexibility in daily trading executions by allowing you to apply it for all kinds of forex currency pair trading. Besides, this strategy works on all sorts of timeframe charts within the MT4 trading platform.
20 Pips a Day Forex Scalping Strategy Overview
Complete installing the strategy on your MT4 terminal and find your chart like the image below:
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20 Pips a Day Forex Scalping Strategy Explanation
The Scalping Strategy has been combined with two effective Moving Averages. The fastest one is the 5-day Smoothed MA and the slower one is the 144-day Linear Weighted Moving Average.
5 Smoothed MA is greater than 144 LWMA means it is a bullish crossover. On the other hand, 144 LWMA moves above 5 Smoothed MA is considered as the bearish crossover signal of the market trend.
You encounter a crossover opposite to your trade direction should be considered as a trade exit signal. For determining the stop loss areas, you may rely on the 144 LWMA levels.
20 Pips a Day: Buy Conditions
- Price bar closes as a solid bullish candle
- 5 Smoothed MA value turns greater than 144 LWMA
- Buy triggers when the above conditions are met
- Set stop loss below the current 144 LWMA level
- Exit long/take profit whenever the strategy plots a bearish crossover
20 Pips a Day: Sell Conditions
- Price bar closes as a solid bearish candle
- 144 LWMA value turns greater than 5 Smoothed MA
- Sell triggers when the above conditions are met
- Set stop loss above the current 144 LWMA level
- Exit short/take profit whenever the strategy plots a bullish crossover