Many traders love scalping as their main trading strategy. The reason is simple. As a reseller, you’ll be done in just a few minutes when you get in and out of the market quickly making quick profits every time.

There are many scalping strategies. This simple scalping strategy is known as Lucky Spike and is used by many traders to make consistent profits every day in the forex market.

Successful traders follow the KISS principle. Whichever trading strategy you follow, the simpler you keep it, the higher the probability of making a winning trade. Lucky Spike’s speculation strategy uses this KISS principle. Let’s discuss it.

If you have been trading for a while, you must be familiar with candlestick patterns such as the shooting star, the morning star, the hammer, the inverted hammer, the hanging man, or the four types of Dojis.

All of these candle patterns are similar in that they have small bodies and long shadows or wicks. These types of candlestick patterns are also known as indecision patterns, as when they appear it means that neither sellers nor buyers are dominating the market.

You can not only use this strategy for scalping, which means trading on smaller time frames, but also on higher time frames such as the daily, weekly, and even monthly charts.

When you find that any of the above patterns appear in a trending market, prepare for a trade.

When you find any of the above patterns in a strong downtrend with a small candle body and a long shadow, go long at the open of the next candle with the stop loss placed just below the lower shadow of the Lucky Spike. Make a profit at the close of the next candle.

Similarly, when you find that Lucky Spike appears in an uptrend market, enter a short trade at the open of the next candle. Place your stop loss at the top of the Lucky Spike and profit at the close of the next candle!