The Rausch Scalping System is designed for use to scalp with the 1 minute timeframe chart. It is somehow complex and require some experience in forex trading and thus not recommended to forex beginners. However, if you learn how to use this scalping strategy and do some practice on your demo account, you can be guaranteed to make supernormal profits using this scalping strategy.
This scalping system was developed in 2015 and it has since then been of great help to scalpers.
When using this scalping strategy, the trader should trade as from 8:00 in the morning to 14:00 GMT.
Before beginning to trade using this trading strategy, you should ensure that you are in the 1 minute chart. Also, you should choose the currency pairs with the smallest spreads. The smaller the spread the more advantageous it affects the performance. That is the reason as to why the EUR/USD is the most preferred currency pair to trade using this strategy.
This scalping system uses a combination of indicators. These indicators include: Rausch trend indicator, Rausch up down indicator, Rausch Up down MTF indicator, Pivot_Daily indicator and the Rausch MTF indicator.
This trading strategy has to kinds of templates namely: scalping rausch blau and scalping rausch. However the difference between the two is their back ground color and the color with which the indicators are displayed with. Other than that, the rest of the operations are similar.
Fig.1. The scalping rausch blau template of the Rausch Scalping System.
Fig.2. The scalping rausch of the Rausch Scalping System.
How to trade using the Rausch Scalping System
The trader should only take action (place a buy or a sell order) in the 1 minute chart.
- Placing a buy order (short position)
The following conditions have to be met for the trader to place a buy order:
- The market price must be above the SMA 30, SMA 20 and run EMA 12.
- The SMA `should run in parallel.
- The NOISE UP DOWN should be above the 0 level and gray in color.
- The NOISE UP DOWN MTF should be above the 0 level and green in color.
- TREND NOISE (21) should be gray in color.
- TREND NOISE (50) should be gray in color.
- Placing a sell order (short position)
For the trader to place a sell order, the following conditions have to be met:
- The market price must be below the SMA 30, SMA 20 and run EMA 12.
- The SMA should run in parallel.
- The NOISE UP DOWN should be below the 0 level and black in color.
- The NOISE UP DOWN MTF should be below the 0 level and red in color.
- TREND NOISE (21) should be black in color.
- TREND NOISE (50) should be black.
Fig.3. Placing trades using the Rausch Scalping System.
How to exit trades
For the trader to close the orders, the trader should look for the following;
- Using the stop levels (stop loss and take profit levels.
- If the 1 minutes Candlestick closes below the SMA 30.
- If the NOISE UP DOWN MTF changes color.
- The trader can also use the pivot points to close his or her orders. Especially the MR1 and the R1.
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