The Ishimoku Scalping trading strategy is an adaptation of the trend-based Ishimoku System strategy, which uses signals from the Ichimoku indicator in combination with forex oscillators and Bollinger Bands. Since this strategy involves short-term trades, it is recommended to use currency pairs with the lowest spreads.
Input Parameters
To start trading, you will need:
- Currency Pairs: Any
- Timeframe: M5
- Trading Time: London, New York
- Risk Management: After calculating the stop-loss, choose a lot size so that the risk does not exceed 2-5% of the deposit per trade.
Used Indicators
To analyze the currency pair chart, you need to install the following indicators:
- Bollinger Bands (20, 1, close)
- ADI (14, 14)
- Slow stoch (3, 3, 14, 50, 50)
- CCI (50, 50, -50)
- Ichimoku (default)
Strategy Template Setup
You can download the archive with the indicators at the end of this article. There you will also find the template that allows you to easily and correctly install them. To do this:
- Unzip the template archive.
- Copy the templates to the templates folder.
- Restart the terminal.
- Open the chart for the desired currency pair.
- Apply the template named IshimokuScalping.
The chart should look like this:
Signals for Opening a Long Position (Buy)
To open a Buy trade, the following conditions must be met:
- The price is above the Ichimoku cloud.
- The price is outside the Bollinger Band.
- The Stochastic crosses the 50 level from below to above.
- The CCI crosses the 50 level from below to above.
- The ADX indicator bands are at maximum distance from each other.
- The stop-loss is placed below the nearest local low.
Signals for Opening a Short Position (Sell)
For a Sell trade, the conditions are reversed:
- The price is below the Ichimoku cloud.
- The price is outside the Bollinger Band.
- The Stochastic crosses the 50 level from above to below.
- The CCI crosses the -50 level from above to below.
- The ADX indicator bands are at maximum distance from each other.
- The stop-loss is placed above the nearest local high.
According to experts from fortraders.org, Ichimoku is not the best choice as an indicator for scalping. Therefore, we strongly recommend testing the strategy’s signals on historical data and a demo account before using it on a real account.
According to the strategy author, it provides clear signals for entering the market, although false signals are also possible. To increase the accuracy of entries, you can try replacing the standard indicators included in the Ishimoku Scalping strategy with modified versions.
Download the trading strategy template
Other Forex Scalping Strategies
- Binary Options and Scalping Strategy TMA Crossing
- Gadi Scalping Strategy on Moving Averages and Volumes
- Forex Scalping Strategy Renko Scalping
FAQ
What is the Ishimoku Scalping strategy?
The Ishimoku Scalping strategy is a trading approach that adapts the trend-based Ishimoku System for short-term scalping, using the Ichimoku indicator along with other tools like Bollinger Bands and oscillators.
What timeframes are suitable for the Ishimoku Scalping strategy?
The Ishimoku Scalping strategy is typically used on the M5 timeframe, making it ideal for short-term trading sessions in London and New York.
How can I improve the accuracy of the Ishimoku Scalping strategy?
To improve accuracy, traders can test the strategy on historical data and a demo account before using it on a real account. Additionally, modifying the standard indicators used in the strategy may enhance its performance.
