The 1 minute forex scalping strategy with stochastic fisher indicator as the name says is made up of two indicators: stochastic and the fisher indicator.
The stochastic indicator is simply an oscillator that oscillators up and down between 0 and 100. If the stochastic lines are above 80 level, price is deemed to be overbought and there is potential for price to now move down.
If the stochastic lines are below the 20 level, price is deemed to be oversold and one should expect price to start moving up.
The fisher indicator is a quite simple histogram indicator that detects direction and strength of the trend and signals trend changes.
Trading Parameters and Requirements
- the stochastic indicator (default settings)and
- the fisher indicator (default settings)
- Currency Pairs To Trade: Low spread currency pairs like, EURUSD, GBPUSD, USDJPY, USDCHF, USDCAD, AUDUSD
- Timeframes: 1 minute or even 5 minutes or you can use it on higher timeframes as well.
The buying and selling rules are really simple. Refer to the chart below for the rules to follow.
Lets start with he buying rules first:
- Fisher Indicator must have a green bar
- the stochastic indicator must go below 20 level and the two stochastic lines have crossed over
- place a buy market order or place a pending buy stop order 1 pip above the high of the candlestick when it closes.
- the place your stop loss at the nearest swing low or at 10 pips below the entry price.
- for take profit, aim for 1:3 risk to reward. For example, if you stop loss is 10 pips then aim for a 30 pips profit target.
- Fisher Indicator must have a red bar
- the stochastic indicator must go above 80 level and the two stochastic lines have crossed over and are starting to go down.
- place a sell market order or place a pending sell stop order 1 pip below the low of the candlestick when it closes.
- the place your stop loss at the nearest swing high or at 10 pips above the entry price.
- for take profit, aim for 1:3 risk to reward. For example, if you stop loss is 5 pips then aim for a 15 pips profit target.
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