3 BEST Scalping Strategies for ALL Traders in 2024

Summary

In this video, three powerful scalping strategies are shared, catering to beginner, intermediate, and advanced traders. The first strategy uses three moving averages to identify trade directions and entry points on the 1-minute chart. The second strategy focuses on support and resistance breaks and retests for consistent, low-risk trades. The third strategy leverages supply and demand zones to capitalize on price reversals. With live trade examples and a proven 80% win rate from backtesting, these strategies promise to help traders achieve consistent profits in fast-paced markets.

Takeaways

• 😀 Scalping involves quick, short-term trades with fast entries and exits, typically in the 1-minute to 15-minute timeframes.
• 😀 The first strategy uses three smooth moving averages (9, 14, and 50-period) to determine the overall trend and entry points for trades.
• 😀 For beginners, the strategy emphasizes trading in the direction of the 50-period moving average and waiting for the green and yellow lines to cross for an entry.
• 😀 The goal of the first strategy is to trade with a 1.69 risk-to-reward ratio, aiming for a successful and quick profit within minutes.
• 😀 The second strategy is designed for intermediate traders and is based on support and resistance break and retest. It focuses on price breaking through a support or resistance level, then retesting it as new support or resistance.
• 😀 With the second strategy, trades are often low-drawdown and involve fast profits (e.g., $400 from a 20-pip move).
• 😀 The third strategy is for advanced traders and uses supply and demand zones to enter trades. It focuses on price action showing strong selling pressure to enter the market at key levels.
• 😀 Advanced traders use supply and demand zones combined with break of structure to place limit orders, aiming for quick profits (e.g., $300 from a 5-pip move).
• 😀 The video emphasizes the importance of backtesting strategies to confirm their effectiveness, with a claim of an 80% win rate after testing 120 trades.
• 😀 The trader showcases live results, demonstrating the application of these strategies in real-time trades with clear profit outcomes (e.g., $3,866 in profit on a $100,000 account).

Q & A

What is scalping in forex trading?

Scalping is a trading strategy that involves making quick, small trades in the market. Traders enter and exit positions within short timeframes, such as one minute, aiming to capture small profits from small price movements.

How do the three moving averages work in the first scalping strategy?

The first scalping strategy uses three moving averages: a 50-period moving average (representing the overall market trend), a 9-period moving average, and a 14-period moving average. The key idea is to look for crossovers between the 9-period and 14-period moving averages, but only take buy trades when the price is above the 50-period moving average and sell trades when the price is below it.

Why is it important to only trade in the direction of the 50-period moving average?

The 50-period moving average acts as a filter for the overall market trend. By only trading in the direction of the 50-period moving average, traders ensure they are following the broader market trend, which increases the likelihood of success by avoiding countertrend trades.

What is the risk-reward ratio and why is it important in scalping?

The risk-reward ratio represents how much risk a trader is willing to take compared to the potential reward. In scalping, a good risk-reward ratio is essential to ensure that even if a trader has a lower win rate, they can still be profitable over the long term. For example, a 1:2 risk-reward ratio means a trader risks $1 to make $2.

How do support and resistance work in the second scalping strategy?

In the second strategy, traders look for key support and resistance levels. Once a resistance level is broken, it becomes a potential support level, and vice versa. Traders enter a trade when the price retests the broken level (support turned resistance or resistance turned support), providing a good opportunity for a quick trade in the direction of the breakout.

What is the advantage of using the support and resistance break and retest strategy?

The support and resistance break and retest strategy is beneficial because it often results in high-probability trades. When a key level is broken and then retested, it confirms that the breakout is valid, and the price tends to move strongly in the new direction, minimizing the risk of false breakouts.

Can the support and resistance strategy be used on timeframes other than one minute?

Yes, the support and resistance strategy can be used on various timeframes. However, for scalping, the one-minute timeframe is preferred because it allows traders to enter and exit the market quickly, capturing small price movements.

What is the concept of supply and demand in the third scalping strategy?

In the third scalping strategy, supply and demand zones are identified by observing large price movements, such as multiple consecutive red candles, which indicate strong selling pressure. A supply zone is formed when sellers push the price down significantly, and the strategy involves waiting for the price to return to this zone before entering a trade, expecting the price to fall further.

How do you set a limit order in the supply and demand strategy?

A limit order is placed at the price level where the trader expects the price to return to the supply or demand zone. As soon as the price touches the zone, the order is triggered, and the trade begins. This allows traders to automate their entries without needing to monitor the market constantly.

What results were achieved through backtesting the scalping strategies?

The strategies were backtested on 120 trades, resulting in an 80% win rate and a profit of $2,143. However, the video creator acknowledges that backtesting results are easier to achieve than live trading, and actual trading conditions may vary.