A Simple Scalping Strategy

Scalping is a widely used trading strategy that works in any market whether you trade forex, stocks, futures, commodities, bonds or ETFs.

There are many scalping strategies. This simple scalping strategy is known as the Lucky Spike and it is being used by many traders to make consistent profits each and every day scalping the forex market.

Always follow the K.I.S.S principle in your trading. The simpler your trading strategy, the higher the chances are for you to make one winning trade after another.

Lucky Spike Strategy uses candlestick patterns like the shooting star, morning star, hammer, the hanging man or the doji as the trigger for entering into a trade.

All these candlestick patterns are similar in the sense that they have small bodies and long shadows or wicks. These type of candlestick patterns are also known as indecision patterns as when they appear it means neither the sellers nor the buyers are dominating the market.

You can use the Lucky Spike Pattern for scalping as well as day trading, swing trading or even position trading on higher timeframes like the daily, weekly or even the monthly charts.

When you find anyone one of the above patterns appearing in a trending market, get ready for a trade.

When you find anyone of the above patterns in a strong downtrend with a small candle body and one long shadow, go long on the open of the next candle with the stop loss placed just below the lower shadow of the Lucky Spike. Take profit at the close of the next candle.

Similarly, in a strong uptrend, go short at the open of the next candle that appears after the Lucky Spike with the stop loss just above the Lucky Spike Upper Shadow and take profit at the close of the next candle. Good Luck!

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