Stochastic 1 Min Forex Scalper

The Stochastic 1 Min Forex Scalper allows forex traders pick profits from the market with ease and at short intervals (M1, M5 and M15).

This strategy reduces the burden a currency trader would have to face if they have to sit in front of their computer for long stretch hours.

Taking into consideration the basic indicators that are being deployed, sit tight and enjoy a worthwhile, but yet simple trading strategy.

Chart Setup

MetaTrader4 Indicators: Stochastic.ex4 (Input Variable modified; %K period=28), Darvas.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute

Recommended Trading Sessions: London, New York

Currency Pairs: Any pair with 4 pips maximum spread

Download

Download the Stochastic 1 Min Forex Scalper

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets displayed:

  1. If price breaks above the ceiling of the most recent box that makes up the Darvas custom indicator, the sentiment in the market is said to be bullish, hence a buy trigger.
  2. If the lines of the Stochastic indicator crosses within its oversold region (below the 20.00 signal level), from where it is seen to break above the 20.00 signal level, price is said to be pressured higher i.e. a buy alert.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions holds sway:

  1. If during a bullish signal price is seen to break below the floor of the most recent box (represents the pair low), a bearish trend is said to be underway, thus paving way for a possible exit or take profit.
  2. If the lines of the Stochastic indicator breaks into the overbought region (above the 80.00 signal level), crosses and subsequently break below this level, it is signaling an end to the bullish trend i.e. a trigger to exit or take profit at once.

Sell Entry Rules

Enter a sell order if the following chart or indicator pattern takes center stage:

  1. If price breaks below the floor of the most recent box that makes up the Darvas custom indicator, the sentiment in the market is said to be bearish, hence a sell trigger.
  2. If the lines of the Stochastic indicator crosses within its overbought region (above the 80.00 signal level), from where it is seen to break below this level, price is said to be pushed somewhat lower i.e. a sell alert.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following holds sway:

  1. If during a bearish alert price is seen to break above the ceiling of the most recent box (represents the pair high), a bullish trend is said to be underway, thus paving way for a possible exit or take profit.
  2. If the lines of the Stochastic indicator breaks into the oversold region (below the 20.00 signal level), crosses and subsequently break above this level, it is signaling an end to the bearish trend i.e. a trigger to exit or take profit without delay.

Sell Trade Example

Fig. 1.1

Free Download

Download the Stochastic 1 Min Forex Scalper

About The Trading Indicators

The Darvas.ex4 custom indicator was designed in 1956 by Nicolas Darvas, an Ex-ballroom dancer.

A Darvas box is formed when the price of a currency pair surges past the previous high but dips back to a price level not far from that peak.

The idea behind the Darvas box is basically a momentum strategy.

The Stochastic Indicator is a momentum oscillator that is credited to George Lane.

Two important lines make up the indicator i.e. %K fast line and the %D slow line, while it oscillates between 1 and 100.

Essentially, the Stochastic gauges the relationship between an assets closing price and its price range over a specified time period.

Download The Bollinger Band Bounce Trading Strategy For FREE!

Combines Price Action And Market Volatility To Help You Identify Profitable Entries And Exits Quickly and Accurately.



  • Up To 100 Pips Per Trade With Low Risk
  • Includes Entry, Stop-Loss And Take Profit Rules
  • Learn And Trade This Strategy In only 10 Minutes