Would love to pick your brains on pure naked scalping strategies (5 mins and less) … what are your experiences and what do you find as the most useful technique to adopt. Have been reading so much but nothing specific seems to be able to attract my attention.
What do you think legends?
Put a stoch with settings 14,3,3 on a M1 EURUSD chart. Add levels 20 and 80.
Add a 1000 SMA. This will be your M5 200MA but visible on the M1 chart.
USE price action as well as the MA to determine 5 min trend.
If the MA is going up at a good angle (not flat) only look for long trades.
If the MA is going down only look for shorts.
When looking for a long, wait for stoch to be well below 20 and start to cross up through that 20 line. Close the trade when stoch gets near 80 or when you have 5-10 pips.
Stop: 20 pips, but always try to close when stoch hits 80 even if in loss.
For short trades do the opposite way around.
This is how I scalp. Maybe it will work for you. But I should say a lot of user discretion is needed and a lot of chart time to get to know the way EURUSD moves. Also, stay out around major news releases, don’t trade Non farm and when the head of a major bank is giving a speech be extra careful! This works best on days with very little news.