The 1-minute forex scalping strategy with stochastic fisher forex indicator, as the name says, is made up of two forex indicators: stochastic and the fisher forex indicator.
The stochastic forex indicator is simply an oscillator that oscillates up and down between 0 and 100. If the stochastic lines are above the 80 levels, the price is deemed to be overbought, and there is potential for the price to now move down.
If the stochastic indicator lines are below the 20 levels, the price is deemed to be oversold, and one should expect the price to start moving up.
The fisher indicator is a simple histogram indicator that detects the direction and strength of the trend and signals trend changes.
Trading Parameters and Requirements
- the stochastic forex indicator (default settings)and
- the fisher forex indicator (default settings)
- MT4 Currency Pairs To Trade: Low spread currency pairs like EURUSD, GBPUSD, USDJPY, USDCHF, USDCAD, AUDUSD
- Timeframes: 1 minute or even 5 min, or you can also use it on higher timeframes.
The buying and selling rules are straightforward. Refer to the chart below for the strategy rules to follow.
Let’s start with the buying rules first:
- Fisher Indicator must have a green bar.
- the stochastic indicator must go below the 20 levels, and the two stochastic indicator lines have crossed over
- Put a buy market order or place a buy stop order one pip above the high of the candlestick when it closes.
- Put your stop loss at the nearest swing low or ten pips below the entry price.
- To take profit, aim for 1:3 risk to reward. For example, if your stop-loss is ten pips, then aim for a 30-pips profit target.
- Fisher Indicator must have a red bar,
- The stochastic indicator must go above 80 levels, and the two stochastic indicator lines have crossed over and are starting to go down.
- Put a sell market order or place a sell stop order one pip below the candlestick’s low when it closes.
- Put your stop loss at the nearest swing high or ten pips above the entry price.
- To take profit, aim for 1:3 risk to reward. For example, if your stop-loss is five pips, then aim for a 15 pips take profit target.