As a scalper, we need a powerful weapon to open the trade. One of my favorite trading strategy is hidden divergence. Divergence is a discrepancy between price and oscillator. Here I am using Stochastic (7,3,3) and Bollinger Bands with standard setting.
My target on every trade is only 10 pips. 10 pips is good enough when combined with a good money management based on your account size. You can get rich even you only targeted 10 pips a day or per trade. Here is the example
Pair: EURJPY, USDJPY, GBPUSD
Type: Trend following
For buy condition, make sure the price has break the upper Bollinger Bands. This break Bands confirm a start of an uptrend in selected timeframe (H1 in this case). Now, we need to wait the price to retrace down. When the price is around or near the bottom Bollinger Bands, check if the Stochastic shows a hidden divergence.
Hidden divergence indicated by the price making higher high but the Stochastic shows lower low. This called a bullish hidden divergence. You can open your Long position when the price is moving near bottom Bollinger Bands. Set your target 10 pips. As you can see the price move up pretty nice after the hidden divergence.
On SELL condition, we need to wait until the price break the bottom Bands. This confirm a down trend on the selected time frame. Next, wait the price to retrace up and it should be around upper Bands. Check if the Stochastic shows a divergence. Bearish divergence is happened when the price made a lower low but the Stochastic shows higher high as above.
Open Short around the upper Bollinger Bands when you spot a hidden divergence on this area. If there is no hidden divergence, do not enter the trade. Place 10 pips as the target and you will be fine.
This is very good strategy but where is our stop?