FTSE 100 price action scalping

Time frame: 5 Min / 1 min

FTSE 100

Indicators used / Settings: none / Price Action

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Entry Rules:

This is a very simple strategy that uses no indicators only price action based on candlestick patterns. I use this scalping strategy on the FTSE 100 trading. It requires a lot of patience but is a very effective trading strategy. Wait for shooting star or a hammer to form then enter on the open of the next bar.

In the Pictures below the blue circles indicate YES TRADE . The red circles are NO TRADE.

Spreadbetting long:

Spread bet long when a hammer forms near the current lows. In the first example you can see this spread betting scalping strategy applied in the first and second blue circles.

Do not trade when the hammer forms while the prices are moving higher. The example in the second picture below, the third red circle is a failed hammer as it occurs within an up trend.

Spread-betting short:

When to short the FTSE100? when a shooting star forms near the current highs. The signal is stronger if the shooting star forms at a resistance level. Furthermore the longer the shadow, the stronger the signal. In the second spreadbetting example below(pic2), the body of the shooting star is relatively small to it’s shadow(first and third blue circle) – this is a strong signal and one to trade. The second circle (red) you can see the shadow is not that long compared to the body. This is a riskier trade, and don’t suggest to take.

Exit Rules:

This is a Spread betting scalping strategy, so to take 5 max 10 points out of the market. Your stoploss above / below the low or high of the shadow.

When it works best?

After a rally or a decline and approaching support or resistance

Here is a spread betting example of this FTSE 100 price action scalping strategy

Spread betting example 1