Waqar Asim's Forex Scalping Strategy is a precision model built around identifying high-probability supply and demand reactions during two specific one-hour trading windows on EURUSD and GBPUSD. The strategy combines higher timeframe context — identifying where price is likely to react based on decisional supply and demand zones and premium/discount positioning — with a lower timeframe entry model that waits for an inducement into a LTF supply or demand level before entering. The result is a model designed for patience over frequency: most days present no trade at all.

What distinguishes this strategy is its aggressive yet structured trade management. Stop losses are kept extremely tight at 3–7 pips (or a simple 5 pip flat), and the take profit structure is split — 50% at 3R and 50% at 10R, with an option to take full profit at 3R if confidence in the larger target is low. Breakeven is moved quickly after a new internal high or low forms on the execution timeframe, protecting the position while leaving room for the larger runner to develop.

How the strategy works

Key concepts

Decisional Supply & Demand
Similar to ICT order blocks, but specifically at the origin of large impulsive price moves. A decisional zone is where price made a decisive, aggressive move away — indicating strong institutional interest. Extra confluence is added when the zone formed after an inducement, as this shows the prior liquidity sweep was engineered before the real move.

Inducement
A lower timeframe liquidity sweep followed by a break of structure. Inducements are key to identifying who is currently in control of price — buyers or sellers. On entry, an inducement into a LTF supply or demand level is the trigger signal, confirming that the opposing side has been swept before the expected continuation move.

Market Structure Break (MSB) & Break of Structure (BOS)
An MSB is a candle close past the wick high or low of a recent price leg, signalling a potential trend reversal. A BOS is a continuation signal — a close confirming the existing trend direction. Both can precede the inducement entry in this strategy, depending on whether the trade is a reversal or trend-continuation.

Premium / Discount
Only short trades are taken when price is in premium (above the range midpoint); only long trades are taken when price is in discount (below the midpoint). This filter ensures trades are entered at a favourable location relative to the broader range, avoiding chasing price into an extended position.

Trading windows

Two one-hour windows are used, aligned with key institutional activity periods. A low-spread broker is essential for this model given the tight stop loss distances.

London Open: 8–9am London time (3–4am NY time) — EURUSD, GBPUSD
NY Afternoon: 2–3pm London time (9–10am NY time) — EURUSD, GBPUSD

Trade checklist

✓ Trend or likely reversal zone identified on the 1hr chart using recent inducements and HTF decisional supply and demand.
✓ Premium/discount confirmed — only shorts in premium, only longs in discount.
✓ Optional: SMT Divergence with GBPUSD checked for additional confluence.
✓ Invalidation checked — if price has already moved more than 50% of the local range (roughly 15–20 pips) before entry, skip the trade.
✓ MSB or BOS confirmed on the 1m chart, followed by an inducement into a LTF supply or demand level — this is the entry trigger.
✓ 5 pip stop loss. Move to breakeven after a new internal high or low forms on the 1m execution timeframe.
✓ Take 50% profit at 3R, hold remainder to 10R. If low confidence in the 10R target, take full profit at 3R instead.

Most days there are no valid setups — patience is core to this model. Mark the Asia session (midnight–6am UK / 7pm–1am NY) for additional context when preparing for the trading windows.