Don’t waste your time – keep track of how NFP affects the US dollar!

Data Collection Notice

We maintain a record of your data to run this website. By clicking the button, you agree to our Privacy Policy.

facebook logo with graphic

Join Us on Facebook

Stay on top of company updates, trading news, and so much more!

Thanks, I already follow your page!
forex book graphic

Beginner Forex Book

Your ultimate guide through the world of trading.

Get Forex Book

Check Your Inbox!

In our email, you will find the Forex 101 book. Just tap the button to get it!

FBS Mobile Personal Area

market's logo FREE - On the App Store

Get

Risk warning: ᏟᖴᎠs are complex instruments and come with a high risk of losing money rapidly due to leverage.

76.5% of retail investor accounts lose money when trading ᏟᖴᎠs with this provider.

You should consider whether you understand how ᏟᖴᎠs work and whether you can afford to take the high risk of losing your money.

Ultra-fast Scalping Strategy

Ultra-fast Scalping Strategy

2022-08-26 • Updated

Information is not investment advice

We often get a lot of requests from FBS traders on how to do scalping professionally. This is indeed a difficult trading style that requires a good reaction and skills. That is why we have thorough coverage of this topic on our website. You can already find a strategy with Bollinger Bands and a 5-minute scalping strategy with two moving averages in the “Tips for Traders” section. They have something interesting in common: they both are implemented on the M5 timeframe. On this timeframe, a trader can execute multiple trades within one hour. Of course, trading at such a small timeframe requires your total attention and patience.

What if we say that you can trade even faster on the M1 timeframe? Yes, it’s possible! However, you need to follow certain steps to avoid the danger of misleading signals.  

First of all, have a straightforward strategy with entry and exit rules.

Secondly, know how much risk you can take. Be sure that your take profit is at least twice bigger than your spread.

Thirdly, choose the most liquid pairs with tight spreads (EUR/USD, GBP/USD, USD/CHF, USD/JPY).

If you are good with the rules we declared above, let’s look at the strategy!

Trading strategy “MACD + Bollinger Bands”

Trading setups: Bollinger Bands with 100 periods, Bollinger Bands with 20 periods, MACD (12; 9; 26).

Trading instruments: EUR/USD, GBP/USD.

Buy entry rules:

  • The fast Bollinger Bands (20) should move below the slow Bollinger Bands (100).
  • MACD needs to cross its signal line bottom-up in the oversold zone (below zero).
  • Open the “Buy Stop” order when these conditions are implemented.
  • Place the Stop Loss on the lower Bollinger Band (20).
  • If you follow a less-risky approach, locate your Take Profit on the upper border of the Bollinger Band (20).
  • For risk-takers, you need to close your position when MACD crosses signal line above zero.

Let’s look at the example.

111.png

On June 30, we traded GBP/USD. The fast Bollinger Band was moving below the slow one. Approximately at 11:16, we entered a trade at 1.1892 after the signal line of MACD crossed the indicator in the oversold zone. Stop Loss was located at 1.1884 (lower Bollinger Band (20)), while Take Profit was placed near the upper Bollinger Band (20) at 1.1898. 

Sell entry rules:

  • The fast Bollinger Bands (20) should move above the slow Bollinger Bands (100).
  • MACD needs to cross its signal line upside down in the overbought zone (above zero).
  • Open the “Sell Stop” order when these conditions are implemented.
  • Place the Stop Loss on the upper Bollinger Band (20).
  • A rule for a conservative trader: locate your Take Profit on the lower border of the Bollinger Band (20).
  • A rule for risk-taker: close your position when MACD crosses signal line below zero.

45343.png

On the same chart, a situation on June 30 allowed us to sell the pair. After the signal line of MACD crossed the indicator in the overbought zone and fast BB (20) started moving above the slow (100) one, we opened a position at 1.1906. We located Stop Loss at 1.1907 and Take Profit at 1.1898.

Bottom line

Scalping on the M1 timeframe is not a popular technique given the risks involved. You need to be a cold-blooded, quick decision-maker who thinks ahead and understands the action he does. We recommend you master the trading strategy above on a demo account first. This way, you will definitely become a pro in scalping.

Similar

Pin Bar Trading Strategy

Sometimes a chart or a candlestick pattern may provide a decent entry signal if it is located at a certain level. A pin bar is one of the most reliable and famous candlestick patterns, and when traders see it on the chart, they expect the price to change its direction soon.

Japanese Candlesticks: a Complete Newbies’ Guide

Have you ever wondered how many wonderful tools did Japanese people invent? QR codes, car navigation, instant noodles, and sushi are just some of the Japanese things we can't imagine our life without.

Money Flow Index Trading Strategies

Among hundreds of different indicators and technical tools for traders, the relative strength index (RSI) is one of the most popular due to its simplicity and, at the same time, its power in various trading cases. In this article, we want to tell you about another powerful tool similar to RSI but with some cool tweaks.

Choose your payment system

Feel the Team Spirit

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later