The Scalper Hourly trading strategy is designed for scalping, even though it operates on hourly charts.
Input Parameters
- Currency Pairs: Any
- Timeframe: H1
- Trading Time: 24/7
- Strategy Type: Scalping, indicator-based
Used Indicators and Entry Rules
- Forex Indicator smHull Mavg: It is similar to the well-known moving average with a color change function when market sentiment (trend) changes. The indicator can also be used to exit an open position when its color changes opposite to the current trend. To predict currency rates, sell signals occur when the smHull Mavg is yellow and its line crosses the parallel moving averages with a period of 21 (red and blue) from top to bottom; buy signals occur when the smHull Mavg is blue and its line crosses the moving averages from bottom to top (above the moving averages).
- BBands Stop Indicator: Located on the price chart and represented as a set of points indicating the nearest resistance and support levels. For buy signals, the indicator should be blue and located below the price; for sell signals, the points should be red and located above the price. You can also adjust the stop order to profit with each new candle closing based on these points.
- Exclusive Indicator ArenDI ATR: Do not confuse it with the Better Volume tool. It primarily indicates market strength, which allows analyzing the seriousness of the currency pair’s tendency to rise or fall. It is important to remember that the signal is valid only when the indicator’s histograms are above the signal blue line. These moments confirm the authenticity of the signal formed by the strategy.
- Scalper Osc D1 Indicator: This is straightforward – for buys, the histogram should be green (important: not light green but bright green); for sells, the histogram should be bright red.
Strategy Principle
In predicting the change in currency rates, this strategy uses five forex indicators. Some of them examine the prevailing trend on the currency exchange, while others analyze the current situation for a more accurate entry with a smaller stop loss. It is advisable not to forget setting take profit at least 2-3 times larger than the stop loss to maintain the mathematical expectation of profit.
As mentioned above, the take profit for each order should be at least two stop losses. Otherwise, the strategy may start to incur losses. Therefore, if you do not use fixed targets, make sure that the majority of profitable orders close in profit greater than 2-3 stop losses. The last ones are usually set according to local minima or maxima and typically do not exceed 25 points for a four-digit quote. Take profit or target for a trade can be fixed or dynamic, if it is not difficult for you to “watch” price changes once an hour. Dynamic TP is known as manual closure of the market order performed by the trader when the color of the smHull Mavg indicator changes.
According to experts from ForTraders.org, the best way to control a position within this forex tactic will be the familiar trailing stop on the BBand Stop indicator (i.e., moving SL following the points of the indicator under each bar). Risk management per trade should not exceed 2%.
Download the indicators and strategy template Scalper Hourly
Other Scalping Trading Strategies
- PinkFlint Scalping Trading Strategy: Two Approaches to Scalping
- Forex Strategy for Scalping on Japanese Yen Using Bollinger Bands
- Sane FX Trading Strategy: Scalping on Currencies and Gold
- The Secret Strategy: Simple Forex Strategy for Scalping
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“excerpt”: “Scalper Hourly Forex Strategy: Scalping on the Hourly Chart”,
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FAQ
What is the Scalper Hourly Forex Strategy?
The Scalper Hourly Forex Strategy is designed for scalping using hourly charts, combining multiple indicators for accurate entry and exit points.
Which indicators are used in the Scalper Hourly Strategy?
The strategy uses the smHull Mavg, BBands Stop, ArenDI ATR, and Scalper Osc D1 indicators to identify market trends and potential trades.
How to manage risk with the Scalper Hourly Strategy?
Risk management involves setting a stop loss no more than 2% of the trade size and using a trailing stop to follow the BBands Stop indicator for better position control.
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