Gold Spot / U.S. DollarEducation
XAU/USD - Scalping Strategy
Strategy Summary:
This strategy is designed for the M1 and M5 timeframes and has been personally tested, demonstrating strong results. It is a mechanical system with strict rules to ensure discipline and consistency in trading decisions.
Whilst I have personally used this system on XAU/USD it can be applied to other volatile asset classes.
Indicators Used:
1. 55-Moving Average (High) and 55-Moving Average (Low):
* These create a channel to filter out trades during choppy market conditions.
* No trades are taken if the price is within this channel.
2. Heiken Ashi Candles:
* Used to identify the trend and determine entry/exit points.
* Stay in a trade as long as candles remain green (for buys) or red (for sells).
3. Optional Indicator:
* 200 Moving Average on a Higher Timeframe (HTF):
* Use this for directional bias:
* Only take buys if the price is above the 200-MA.
* Only take sells if the price is below the 200-MA.
Entry Criteria:
Buy Setup:
1. Price breaks above the 55-MA (High) with a green Heiken Ashi candle.
2. Stop loss options:
* Below the previous candle's low.
* ATR x 2.5.
Sell Setup:
1. Price breaks below the 55-MA (Low) with a red Heiken Ashi candle.
2. Stop loss options:
* Above the previous candle's high.
* ATR x 2.5.
Risk Management & Rules:
1. Avoid Trades in the Channel:
* No trades if the price is between the 55-MA High and Low.
2. Risk Management:
* Risk no more than 0.5% of the account balance per trade.
3. Profit Targets:
* Fixed Risk-Reward Ratio: 1:1.5.
* After reaching 1:1.5, either:
* Move stop loss to breakeven.
* Take partial profits and stay in the trade until the Heiken Ashi candle changes color.
4. Session Focus:
* Trade during the Asian and New York sessions.
Key Notes:
* Align your trades with the Higher Timeframe Trend for better success.
* Adding the 200-MA on from a higher timeframe can provide an additional layer of confluence:
* Take buys only when price is above the 200-MA.
* Take sells only when price is below the 200-MA.
This strategy is designed for the M1 and M5 timeframes and has been personally tested, demonstrating strong results. It is a mechanical system with strict rules to ensure discipline and consistency in trading decisions.
Whilst I have personally used this system on XAU/USD it can be applied to other volatile asset classes.
Indicators Used:
1. 55-Moving Average (High) and 55-Moving Average (Low):
* These create a channel to filter out trades during choppy market conditions.
* No trades are taken if the price is within this channel.
2. Heiken Ashi Candles:
* Used to identify the trend and determine entry/exit points.
* Stay in a trade as long as candles remain green (for buys) or red (for sells).
3. Optional Indicator:
* 200 Moving Average on a Higher Timeframe (HTF):
* Use this for directional bias:
* Only take buys if the price is above the 200-MA.
* Only take sells if the price is below the 200-MA.
Entry Criteria:
Buy Setup:
1. Price breaks above the 55-MA (High) with a green Heiken Ashi candle.
2. Stop loss options:
* Below the previous candle's low.
* ATR x 2.5.
Sell Setup:
1. Price breaks below the 55-MA (Low) with a red Heiken Ashi candle.
2. Stop loss options:
* Above the previous candle's high.
* ATR x 2.5.
Risk Management & Rules:
1. Avoid Trades in the Channel:
* No trades if the price is between the 55-MA High and Low.
2. Risk Management:
* Risk no more than 0.5% of the account balance per trade.
3. Profit Targets:
* Fixed Risk-Reward Ratio: 1:1.5.
* After reaching 1:1.5, either:
* Move stop loss to breakeven.
* Take partial profits and stay in the trade until the Heiken Ashi candle changes color.
4. Session Focus:
* Trade during the Asian and New York sessions.
Key Notes:
* Align your trades with the Higher Timeframe Trend for better success.
* Adding the 200-MA on from a higher timeframe can provide an additional layer of confluence:
* Take buys only when price is above the 200-MA.
* Take sells only when price is below the 200-MA.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.