Another common scalping trading strategy utilises two MAs, represented by support and resistance levels (S/R), along with two EMAs, consisting of a 7-period and a 14-period. These can help to identify long and short positions to take in the direction of the trend.
Set your 5-minute timeframe (M5) and your EMA-7 and EMA-14, applying both to close. To enter a trade, you’ll need to look out for a break in the S/R, which will be confirmed by the crossing of two MAs.
For a buy entry, the EMA-7 must close the EMA-14 from below and for a sell entry, the EMA-7 must close the EMA-14 from above. Place your stop loss behind the nearest local low on the chart for a buy and behind the nearest local high for a sell.
To lock in your profit, you should close your buy when the upwards momentum ends and EMA-7 crosses the EMA-14 from above. You should close your sell when the downwards momentum ends and EMA-7 crosses EMA-14 from below.
Due to their simplicity and efficiency, the use of moving averages is considered the best fast scalping forex trading strategy for beginners. In addition, the system is ideal for currency trading though it also works well with other assets.
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