A Simple Scalping Strategy Called Lucky Spike
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Learn this powerful Fibonacci Retracement method FREE that pulls 500+ pips per trade. Scalping is one of the most popular forex strategy. Scalping means quickly entering and exiting a trade to make 10-20 pips per trade. A scalping trade might last from a few minutes to 30 minutes. This is a simple scalping strategy that combines the power of a special candlestick pattern called Lucky Spike. Many traders use scalping as their main trading strategy. Scalping means quickly entering and exiting the market making a few pips every time. Most scalpers look for making a quick 10-20 pips each time they enter and exit the market. By making a few high probability scalping trades every day, you can make 30-60 pips easily.
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.
Successful traders follow the K.I.S.S principle. Whatever trading strategy you follow, the simpler you will keep it, the higher the probability of making a winning trade. Lucky Spike Scalping Strategy uses this K.I.S.S principle. Let’s discuss it.
If you have been trading for a while, you must be familiar with the candlestick patterns like the Shooting Star, Morning Star, the Hammer, the Inverted Hammer, the Hanging Man or the four types of Dojis.
What is the common characteristics in the above patterns? They all share one common thing, a small candle body and long shadows.
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 any of the above candlestick pattern appears in a strongly trending market, it is a signal that a trend reversal is about to happen.
When the Lucky Spike appears in a down trending market, enter a long trade at the open of the next candle. Place your stop loss at the low of the Lucky Spike and 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. You can use this scalping strategy from 5 minutes to daily charts and even weekly charts.Good Luck!