The 10 Points Scalping System: MACD & Stochastic

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The 10 Points Scalping System: MACD & Stochastic

The “10 Points” system is a classic M1 scalping strategy designed for high-volatility currency pairs. It aims to capture quick 10-pip movements during the European and American sessions by using MACD for trend direction and Stochastic for entry timing.

Strategy Profile

Timeframe

M1 (1-Minute)

Pairs

Majors & JPY Pairs

Target

10 Points

1. Indicator Setup

Apply these oscillators to your M1 chart:

  • MACD Oscillator: Settings 13, 26, 9.
  • Stochastic Oscillator: Settings 5, 3, 3.

2. Long Entry (Buy) Rules

  1. Trend: The MACD histogram is in the positive zone (above zero).
  2. Trigger: The Stochastic Oscillator drops below level 20 and then crosses back above it.
10 Points Scalping Buy Strategy
Figure 1: Buy Signal – MACD positive and Stochastic crossing up from oversold

3. Short Entry (Sell) Rules

  1. Trend: The MACD histogram is in the negative zone (below zero).
  2. Trigger: The Stochastic Oscillator rises above level 80 and then crosses back below it.
10 Points Scalping Sell Strategy
Figure 2: Sell Signal – MACD negative and Stochastic crossing down from overbought

Trade Management

  • Take Profit: Fixed at 10 points.
  • Stop Loss: 1 point above/below the nearest local High/Low.

Quick Wins: Scalp for 10 points at a time and boost your income with rebates.

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