Simple Moving Average + RSI Scalping Strategy

Easiest Strat🚀

 Strategy Idea: 

- Use a fast moving average (MA) to spot short-term trend direction. 

- Use Relative Strength Index (RSI) to detect overbought or oversold conditions for entry/exit. 

- Trade only in the direction of the trend indicated by MA. 

- This reduces noise and improves win rate. 

Indicators & Settings: 

- Moving Average (MA): 9-period Simple Moving Average (SMA) 

- RSI: 14-period, Levels: 30 (oversold), 70 (overbought) 

Entry Rules: 

Buy (Long) Entry: 

1. Price is above the 9-SMA (uptrend). 

2. RSI crosses above 30 from below (coming out of oversold). 

3. Enter a long position immediately after RSI crosses above 30. 

Sell (Short) Entry: 

1. Price is below the 9-SMA (downtrend). 

2. RSI crosses below 70 from above (coming out of overbought). 

3. Enter a short position immediately after RSI crosses below 70. 

Exit Rules: 

- Take profit after 5-10 pips gain (or set a small fixed target based on instrument). 

- Place a stop loss below the recent swing low (for longs) or above recent swing high (for shorts). 

- Or exit when RSI crosses back to neutral (50) or when price crosses the 9-SMA in opposite direction. 

Example (EUR/USD 1-Minute Chart): 

- Price is above 9-SMA, trend is up. 

- RSI dips below 30 (oversold), then rises back above 30. 

- Enter long at RSI cross above 30. 

- Set stop loss 3-5 pips below recent low. 

- Take profit at 7 pips gain. 

- Exit or trail stop if price crosses 9-SMA downward. 

Why This Works: 

- 9-SMA filters out noise by confirming trend direction. 

- RSI signals potential reversals within that trend (momentum exhaustion). 

- Scalpers get quick entries and exits within small price movements. 

- Limits losses with tight stops. 

Tips: 

- Use on volatile pairs like EUR/USD, GBP/USD during active sessions. 

- Avoid trading around major news times to reduce whipsaws. 

- Practice with demo to get the feel of quick entries/exits.