Simple Strategy for Scalping

One of the most difficult for scalpers before entry is determining the strategy. There are complex trading strategies and there are simple ones, and making plans for entry with certain strategies for scalpers does not have to be complex. This article exemplifies a simple trading strategy with the CCI (Commodity Channel Index) indicator for scalping. Only 3 steps need to be taken, namely determining the direction of the trend, determining the entry momentum with the CCI indicator, and determining the exit level according to risk management.

1. Determine Trend Direction

Scalper usually uses a time frame of 1 minute to 15 minutes. To determine the direction of the trend, an exponential moving average (ema) indicator is usually used. In the following example, ema period 200 is used. If the price moves above the ema-200 curve, it is assumed that the trend is bullish and the trader will wait for the opportunity to buy, otherwise if the price moves below ema 200, the trader waits for a sell opportunity.

2.Momentum Entry With CCI Indicator

Because trading with a time frame is low, then after knowing the direction of the trend the trader must immediately determine the momentum of the entry before the momentum disappears and the trend changes. One indicator that can help determine the entry momentum is CCI. In addition to being used to find out overbought and oversold conditions, the CCI indicator also shows the cycle of price movements or moments of trend direction changes, namely when there is a divergence between the direction of price movements and the direction of movement of the indicator.

3. Level Exit In Accordance with Risk Management

Risk management is crucial in scalping because usually traders will enter several times a day. Traders can use the extreme level (high or low) beforehand as a stop loss level, or by determining the stop loss level on the curve line itself. The risk / reward ratio does not have to be high, but try to be greater than 1: 1.

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