The scalping trading strategy Tricolor is designed for active trading on minute charts during the European session. The rules of operation are generally simple and do not require special knowledge in processing signals, so even beginner traders can try their skills.
For work, we need a currency pair with a small spread and good fluctuations during the European session. The optimal ones will be EURUSD or GBPUSD. In the work, we use three exponential moving averages (EMA) with periods of 165, 102, and 63, as well as two stochastics with parameters (15, 3, 9) and (30, 6, 18).
Rules of the Scalping Strategy for M1
Moving averages indicate the direction in which to look for entries. They must necessarily go in the correct order, increasing for a BUY signal and decreasing for a SELL signal. If EMAs get mixed up or cross each other, ignore any signals. The location of the price relative to the moving averages does not matter; the price can be above, below, or within the indicators, the main thing is that they go in order and do not cross. The signals for entry are given by Stochastics.
Rules for Entry to Buy
- EMA(63) is above EMA(102), which is above EMA(165).
- Stochastic (30, 6, 18) has entered the oversold zone (below the level of 10).
- Stochastic (15, 3, 9) is in the oversold zone and crosses the level 20 from bottom to top.
- Enter the buy immediately after the second stochastic crosses the level 20.
- Stop Loss is set at 5 points plus spread.
- Take Profit – 10 points plus spread.
The rules for entering a sell are similar, mirror opposite.
It is not recommended to trade before and after news releases, as well as on holidays, i.e., it is necessary to avoid low and excessive volatility in the market.
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FAQ
What is the Tricolor scalping strategy?
The Tricolor scalping strategy is designed for active trading on minute charts during the European session using specific moving averages and stochastics.
What are the key components of the Tricolor strategy?
The strategy uses three exponential moving averages (EMA) with periods of 165, 102, and 63, along with two stochastics with specific parameters for generating signals.
How do you enter a buy position using the Tricolor strategy?
To enter a buy position, EMA(63) should be above EMA(102), which is above EMA(165). Additionally, the stochastics should be in the oversold zone and cross the level 20 from bottom to top.
