Tricolor - scalping strategy for M1

Tricolor scalping trading strategy is designed for active trading on the minute charts during the European session. Rules of work as a whole are simple and do not require special knowledge in processing signals, so even novice traders can try their hand.

To work we need a currency pair with a small spread and good fluctuations during the European session. EURUSD or GBPUSD would be optimal. We will use three moving averages EMA with periods of 165, 102 and 63, as well as two stochastics with the parameters (15, 3, 9) and (30, 6, 18).

Rules of scalping strategy for M1

Moving averages show us in which direction to look for entries. They should always go in the right order, in ascending order for a BUY signal, in descending order for a SELL signal. In case EMAs get mixed up or crossed each other, all signals should be ignored. The price location relative to the moving averages does not matter, the price can be either above or below or inside the indicators, as long as they are ordered and not crossed. The signal to enter the market is given by the Stochastics.

Rules for Buying Entry

- EMA(63) above EMA(102), which is above EMA(165).
– Stochastic (30, 6, 18) entered the oversold zone (below the 10 level).
– Stochastic (15, 3, 9) is in the oversold area and crosses the level 20 downwards.
- It is necessary to buy as soon as the second stochastic crosses the 20 level.

- StopLoss is set at 5 pips, plus the spread.
- TakeProfit - 10 pips, plus spread.

The rules for entering to sell are similar, mirror opposite.

It is not recommended to trade before and after news releases, as well as on holidays, i.e. it is necessary to avoid small and excessive volatility in the market.

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