GBP/JPY 1 Min Chart Scalping Strategy

 

Currency: GBP/JPY or USD/JPY
Timeframe: 1M, 5M, 15M
Indicators: 3 sets of Bollinger Bands:

• Period 50. Deviation 2 (Red)

• Period 50. Deviation 3 (Yellow)

• Period 50. Deviation 4 (Green)

Bollinger Bands:
Bollinger Bands are one of the most respected and widely used indicators in the FOREX market. These bands give you the relative highs and lows of the currencies involved in the trade.

Sell Strategy:
Sell when the currency price extends above the upper red band and extends at least 50% to the yellow band (sometimes it can reach green band too, but not as usual) The currency price will retrace towards the middle of the Bollinger Bands, so you profit form this retracing.

Buy Strategy:
The buy strategy in dealing with the Bollinger Bands is the just like the selling, except we will wait for the currency price to settle between the less red and yellow bands. I would usually make the trade when the currency retraces up towards the center.

Stop Loss:
I will never entered a trade unless I have a targeted stop loss. This will provide protection from overly excessive losses. I use a time based stop and a hard loss stop.

Time Based Stop:
I will also always set a time limit on all my trades. If the currency price does not enter my expected area and the time has past my limit then I will close the order.

Trading Tips:
My essential rule of thumb is to never trade during a sideways market and prior to major news releases. My daily goal with this strategy is simple to obtain 5 to 10 pips. I like trading at the very beginning of the London session and the very end of the Japan session.

By following this advice you are now ahead of many other investors who haphazardly move without respect to the indicators involved in trading.

 

 

Read more: Scalping Forex Basics