Today I would like to share with you a simple, but effective scalping method, which I've created after extensive amount of research into popular scalping strategies. It is recommended to use it on 5min, 15min and 30min time frames. However, the strategy is more successful at higher time frames, as there is less market noise, hence 15min and above is preferred.
The method uses these indicators:
- Bollinger Bands with settings of 20 and 2 or 2.25 (2.25 will give more accurate signals, but less often)
- 50 EMA.
- RSI with settings of 5 and overbought/oversold levels at 20 and 80 or settings of 10 and overbought/oversold levels at 70 and 30, depending on risk preference. Higher RSI will give less signals, however they will be more reliable.
Essential conditions required for long entry:
- Lower Bollinger Band is pierced from above.
- RSI is at or below 20 level (RSI 5) or 30 (RSI 10)
Additional conditions required for long entry:
- 50EMA is below the middle Bollinger Band.
- Bullish divergence on RSI.
We can enter the long position if all the essential conditions are satisfied, however the method will show higher rate of success if additional conditions are also satisfied.
Essential conditions for short entry:
- Upper Bollinger Band is pierced from below.
- RSI is at or above 80 level (RSI 5) or 70 (RSI 10)
Additional conditions for short entry:
- 50EMA is above the middle Bollinger Band.
- Bearish divergence on RSI.
We can enter the short position if all the essential conditions are satisfied, however the method will show higher rate of success if additional conditions are also satisfied.
Stop Loss and Take Profit targets:
- If only the essential criteria is met, I would recommend a Risk to Reward of at least 1.5 and placing the SL at 7-10pips minimum (depending on volatility of the pair)
- If the additional conditions are also satisfied, I would advise a SL of 7-10 pips and TP at the middle or upper/lower Bollinger Band (depending on personal judgement) for long/short positions.
If you have any questions or just want to share your experience using the strategy - join Precizione Scalping Method Telegram channel:
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I wish you all the best and hope that you will find the strategy useful!
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