subject: A Simple Scalping Strategy [print this page] A Simple Scalping Strategy A Simple Scalping Strategy
Many traders love scalping as their main trading strategy. The reason is simple. As a scalper, you are done in just a few minutes when you enter and exit the market quickly making fast profits each time.There are many scalping strategies. This simple scalping strategy is known as the Lucky Spike and it is being used by many traders to make consistent profits each and every day scalping the forex market.This is a simple scalping strategy that involves trading only one candle. Let's discuss this Lucky Spike Strategy!Lucky Spike Strategy uses candlestick patterns like the shooting star, morning star, hammer, the hanging man or the doji as the trigger for entering into a trade. All the above candlestick patterns have one thing in common. A small candle body and long shadows.You can not only use this strategy for scalping meaning trading on smaller timeframes but also on higher timeframes like the daily, weekly and even monthly charts.When you find anyone one of the above patterns appearing in a trending market, get ready for a trade.When you find anyone of the above patterns in a strong downtrend with a small candle body and one long shadow, go long on the open of the next candle with the stop loss placed just below the lower shadow of the Lucky Spike. Take profit at the close of the next candle.In the same manner, if you find the Lucky Spike appearing in a strong uptrend, go short on the open of the next candle with the stop placed just above the upper shadow of Lucky Spike. Take profit at the close of the next candle.
