What is Retracement Scalping Strategy for MT4

Retracement scalping is a strategy used by traders in the forex market to make profits by buying and selling currencies with the intent of taking advantage of price rebounds.

When you use retracement scalping, you’ll first buy the currency at a lower price (the “support level”) and then sell it at a higher price (the “resistance level”). The goal is to keep your losses as small as possible while still making money. In order to do this, you’ll need to know how narrow or wide the support/resistance level is.

Retracement Scalping Strategy

Download free Retracement Scalping Strategy

If the price moves below your support level, you’ll sell your currency and hope that it rebounds back up above your support level later on. If the price moves above your resistance level, you’ll buy your currency and hope that it falls back down below your resistance level later on.

How to use Retracement Scalping Strategy

Retracement scalping is a popular strategy that can be used to make money in the Forex market. It involves trading on the basis of short-term price movements, and it involves buying or selling assets when the price reaches a certain percentage below or above the previous price.

The idea behind retracement scalping is that markets are usually unstable and full of violent swings. These swings often occur as a result of large waves (i.e. candle waves), and they tend to last for a few seconds at most. In order to profit from these swings, you need to be able to identify the points at which the wave has reached its peak and trough, and you need to be able to identify the point at which it is about to start moving again.

To do this, you need to use technical analysis tools like candlesticks and Bar Charts. You should also keep an eye on indicators like the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence). Once you have identified these points, you can then start trading based on your forecast for future movement.

Retracement Scalping Strategy MT4 trading settings

Retracement scalping is a strategy that uses the price of a security or commodities to predict likely future prices. It is based on the premise that when prices decline rapidly, there is usually a corresponding rebound. Scalpers use this information to “buy low” and “sell high” by buying the security or commodity when it falls below its predetermined support level and selling it when it rises above its predetermined resistance level.

For forex retracements, you can use the following MT4 trading settings:

– Takeprofit: at profit target (e.g. 1% profit)

– Stoploss: at loss limit (e.g. 5% loss)

Retracement Scalping Strategy Advantages

Forex Retracement Scalping Strategy Advantages

– Increased Profit Potential: Due to the fact that this strategy involves trading in order to take advantage of retracements in the price action, it can be extremely profitable. In fact, some traders have been able to make over 100% returns on their investments using this approach.

– Reduced Risk: Since you’re not trading with a lot of money up front, you’re not as vulnerable to losses. And since your profits are based on how well the market moves rather than on your own decisions, you’re also less likely to get caught up in emotional swings.

– Easier To Use: This strategy is relatively easy to implement and execute, which makes it suitable for beginner traders as well as those who are more experienced.

– More Flexible: You can use it with a wide variety of currencies and assets, so there’s always a chance for profitability no matter what happens in the market.

Retracement Scalping Strategy Disadvantages

There are several disadvantages to using a forex Retracement Scalping Strategy.

One disadvantage is that it can be very risky. If the market moves in your favor, you’ll make a lot of money, but if the market moves against you, you could end up losing a lot of money.

Another disadvantage is that it can be challenging to predict the market’s direction. This means that you may need a more conventional trading strategy to get as good of an entry point as you would with a more conventional trading strategy.

Finally, Forex Retracement Scalping Strategies are usually less effective when the market is volatile or moving fast. In these cases, it’s difficult to make any trades at all because the chances of making money are minimal.

Retracement Scalping Strategy installation on MT4

With so much volatility in the markets, it’s always a good idea to have a retracement scalping strategy in place. A retracement scalping strategy is simply a trading system that uses technical analysis to identify price trends and sell short when prices fall below a certain threshold.

There are a few different ways to install a retracement scalping strategy on your MT4 platform. You can either set up an order automatically every time prices fall below your pre-determined threshold or you can set up manual orders manually based on the assumption that prices will continue to decline until they reach your predetermined level again.

whichever method you choose, make sure to keep an eye on the charts and react quickly if prices drop below your predetermined level. This way, you’ll be able to make quick profits by selling short when there’s room and limiting your losses by holding onto your positions until prices rise again.

Retracement Scalping Strategy mt4


Forex retracement scalping strategies are a great way to make quick profits in the volatile markets. Just be sure to have a strategy in place and keep an eye on the charts so that you can take advantage of short-term price trends.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Quora | Reddit | Telegram Channel

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