When it comes to fast-paced forex trading, scalping is one of the most intense and rewarding strategies out there. Traders who scalp aim to profit from small price changes, often entering and exiting positions in seconds or minutes. But doing it successfully requires a sharp setup—one that’s both simple and precise. That’s where the Rice Action Setup comes in.

If you’ve been struggling to find consistency in your scalping routine, or you’re just starting and need a clear edge, the Rice Action Setup offers a structure that helps you read price behavior quickly and react with confidence. This article walks you through the entire setup—what it is, how to use it, and how to incorporate it into your trading toolkit.

Let’s break it all down step by step.

Rice Action Setup Explained

The Rice Action Setup isn’t based on traditional indicators like RSI or MACD. It’s rooted in price action—reading candlesticks, structure, and momentum to identify quick scalping opportunities. The name “Rice” is a metaphor for simplicity and sustainability. Like rice feeds millions with consistency, this setup is meant to feed your trades with reliable, no-nonsense entries.

Here’s a look at the essential components of the setup:

Component	Description
Timeframe	1-minute or 5-minute chart (scalping focus)
Chart Type	Japanese candlesticks
Key Patterns	Break-and-retest, micro double bottoms/tops, inside bar breakouts
Support/Resistance Zones	Drawn from previous session highs/lows or pivot levels
Entry Trigger	Rejection wick + close above/below zone (confirmation candle)
Stop Loss	3–5 pips below/above structure or wick
Take Profit	1:1.5 or 1:2 risk/reward; or trailing using structure
Session	London or New York (high volatility preferred)
Indicators	Optional: 20 EMA (for trend bias only)
Risk Management	1% per trade maximum

Why It Works:

• Price-focused: You’re reacting to what price is doing in real-time, not lagging signals.
• Tight risk: Scalping requires minimal exposure. This setup keeps stops tight but logical.
• Repeatable structure: The break-retest pattern is a timeless market behavior.

Key Features of the Rice Action Setup

Here’s a deeper look at what makes this setup work in the fast-moving world of forex scalping:

1. Focus on Market Structure

You’re not just guessing where the price might go—you’re watching how it interacts with key levels like support and resistance. Does it break and retest? Does it reject with a wick? That’s where your edge begins.

2. Candlestick Confirmation is Crucial

Look for candles that tell a story. Rejection wicks followed by a strong close in the opposite direction are a green light. Don’t jump in until the story is clear.

3. Keep it Simple with One or Two Confirmations

This setup doesn’t rely on stacking indicators. At most, a 20 EMA is used to gauge trend direction. Everything else is price and structure. That keeps it fast and clean.

4. Fast Execution, Tight Stops

Because the setup happens on the 1 or 5-minute chart, you need to be fast. But that also means your stop loss is small—often under 5 pips. That’s ideal for high-volume trades with limited risk.

5. Scalping Sessions Matter

Stick to high-volume times like the London Open (8 AM GMT) or the New York Open (1 PM GMT). That’s when this setup shines—quick moves, solid volatility, and clean levels.

6. Take Profits Without Greed

Your goal isn’t 100 pips—it’s 5 to 15, done multiple times a day. Use fixed reward ratios or let structure guide you (like the last swing high/low). Greed kills scalpers faster than bad setups.

7. Backtest Like a Pro

This setup is easy to backtest. Scroll through historical data, mark key zones, and look for the rice action confirmation. You’ll see just how often it repeats itself.

FAQs

Why is it called the “Rice” Action Setup?
It’s a metaphor. Just like rice is a daily staple in many diets, this setup is meant to be a dependable part of your trading strategy—simple, consistent, and sustaining.

Can I use this setup on pairs like GBP/JPY or just EUR/USD?
You can use it on any pair with good volatility. GBP/JPY, EUR/USD, and GBP/USD are all excellent. Just avoid low-liquidity pairs during off-hours.

Do I need a special platform or tool to use this setup?
No special tools are needed. A basic MT4/MT5 or TradingView chart with candlesticks and the ability to draw lines is enough. Optional: add a 20 EMA.

How many trades per day can I expect?
That depends on market conditions, but you can usually find 2–5 quality setups during a major trading session using this method.

Does this setup work during news events?
It’s best to avoid trading immediately before or after high-impact news (like NFP or FOMC). Price action can be erratic. However, after the news dust settles, this setup can help you catch clean retracements.

What’s the win rate like for this setup?
It depends on your discipline. With proper execution and risk management, many traders report 60–70% win rates. But consistency and patience are key.

Is this setup beginner-friendly?
Yes, especially if you’re willing to put in the time to learn price action and market structure. It’s actually a great way to build a strong foundation in reading the market.

Conclusion

Scalping in forex isn’t for the faint of heart—it demands speed, discipline, and a sharp setup that keeps you on the right side of price. The Rice Action Setup offers all of that in a package that’s both beginner-friendly and professional-grade. It focuses on the things that matter: market structure, candlestick behavior, and clear risk-to-reward.

Whether you’re trading part-time or full-time, using this method during high-volatility sessions can give you the edge you need to pull consistent profits from the market—without the clutter of too many indicators or complicated strategies.

If you want to get serious about scalping, this setup is worth practicing, testing, and refining. Master the rice, and you’ll feed your trading account with consistency.