Scalping Strategy M1 / ​​M5 with Macd and Stochastic

If you prefer trading with minimum risk and short deadlines, here is a simple scalping strategy suitable even for the less experienced, the Macd + Stochastic turbo strategy.

You probably already use an indicator, perhaps one popular among traders such as the Macd or the Stochastic.  Why not use two of them together to improve results? Maybe adjusted for M1 or M5 time frames, that is, for the very common short-term scalping.

Here is the strategy we have prepared for you. You can use it with the help of any 1 minute or 5 minute chart , and any currency pair .

The strategy uses the two indicators already present as standard on most platforms, so to get started you just need a good demo for testing that already has the two indicators available. Otherwise you can rely on the good old metatrader.

The graph with indicators

  • Indicators:  MACD (Moving Average Convergence / Divergence). Parameters: 12,26,2
  • STOCHASTIC (Slow Stochastic). Parameters 8,3,3  
  • Recommended time frame: M1 and M5
  • Currency pair: Any
  • Recommended deadline: 5/6 minutes for M1, 25/30 minutes for M5

Macd Stochastic Strategy Chart (EUR / USD M1)

Macd Stochastic Strategy Chart (EUR / USD M1)

Entry Rules Strategy

BUY (Buy / Call)

  • MACD> 0 (greater than zero)
  • STOCHASTIC crosses (coming from below) level 20

SELL (Sell / Put)

  • MACD <0 (less than zero)
  • STOCHASTIC crosses (coming from the top) level 80

Trading examples

Example 1. Call.

The Eur Usd M1 chart (the same as the one shown above) shows us a possibility of entry into Call , as the macd is above zero and the stochastic rises from level 20.

Macd is above zero and the Stochastic rises from level 20

Macd is above zero and the Stochastic rises from level 20. CALL

Example 2. Put.

Eur / Usd M1. Here we have identified a point where the macd is below zero and the stochastic falls from the 80 level. Put.

macd is below zero and the Stochastic drops from the 80 level. Put.

Macd is below zero and the Stochastic drops from the 80 level. Put.

Example 3. Put

Again a similar example, Macd <0 and Slow Stochastic falls from the 80 level. Put.

Macd <0 and Slow Stochastic drops from level 80. Put.

Macd <0 and Slow Stochastic drops from level 80. Put.

Example 4. Call

MACD> 0, and the Stochastic rises from level 20, Call.

MACD> 0, and the Stochastic rises from level 20, Call.

Example 5. Two Call.

MACD> 0, and the Stochastic rises from level 20, Call.

MACD> 0, and the Stochastic rises from level 20, Due Call.

Example 6. No Trade.

There is no correspondence between Macd and Stochastic. No trade.

MACD> 0, and the Stochastic drops from level 80. No Trade

MACD> 0, and the Stochastic drops from level 80. No Trade

 

KEEP THE STRATEGY IN A CONVENIENT PDF VERSION

You will have the opportunity to consult it during your trading sessions


MACD STOCHASTIC PDF STRATEGY


 

 

 

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