High accuracy “Non-Lag Momentum Scalping Forex Trading Strategy” – With this strategy, we will be trading candles that we believe have momentum and that the next candle would ignore consolidation.
To do this, we will be using 10, 20, & 30 Non-Lag Moving Averages (Non-Lag MA). For scalper, we will also be targeting only five (5) pips. If the candle really does have momentum, a 5-pip target would be easy.
- Time Frame:
- M5 (scalping)
- M15, m30, and H1 (Intraday)
- H4 and D1 (Short term swing trading)
- Currency Pairs: GBPUSD and GBPJPY
- X-NonLag MA
- GMACD Signals
- Pallada Entry
- Relative Strength Index
- Download TraderVersity.Com-NonLagMomentumScalping (Zip File)
- Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators /
- Copy the “TraderVersity.Com-NonLagMomentumScalping.tpl” file (template) to your Metatrader Directory …/templates /
- Start or restart your Metatrader Client
- Select Chart and Timeframe where you want to test your forex system
- Right-click on your trading chart and hover on “Template”
- Move right to select TraderVersity.Com-NonLagMomentumScalping
- You will see “Non-Lag Momentum Scalping Trading System” is available on your Chart
Although this is a scalping strategy, we will still be using the 1-hour timeframe.
This is because more traders are looking at the hourly candles as compared to the lower timeframes.
If the previous hour does have momentum, traders looking at the candle on the next hour would immediately enter based on candle patterns without waiting on the consolidation phase. This volume of traders would push momentum further.
- Non-Lag MA: Blue lines
- Pallada Entry: Blue signals
- Relative Strength Index: Upward and above level 55 line
- Non-Lag MA: Red lines
- Pallada Entry: Red signals
- Relative Strength Index: Downward and below level 45 line
This momentum strategy is a good place to start trading momentums.
It is also not wise to trade all currency pairs since some pairs are just not good for scalping, due to wide spreads of the bid and offers.
Remember, we are only targeting 5 pips and have a stop loss of 5 pips. The spread might ruin your trades since when you open a trade, you begin in the red. A few pips of a negative move might already hit your stop loss.
Practice this strategy, tweak, and make it yours.
This strategy also good for short term swing trading (H4 and D1 TF)[sociallocker]
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