In order to scalp the forex market, one needs an efficient trading system that allows you entry into the market at convenient intervals.
A reliable forex scalping strategy can do just that, hence I have designed the Forex Forecaster trading strategy for this purpose.
Check out the setup and trading rules below:
Chart Setup
MetaTrader4 Indicators: ForexForecaster.ex4 (default setting), MA ribbon filled.89.21.ex4 (width modified; 1)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: Any session
Currency Pairs: Any
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy in the market if the following indicator or chart pattern gets displayed:
- If the line of the ForexForecaster.ex4 custom indicator break and hovers above the 0.00 signal level, it is an indication that price is experiencing upward pressures i.e. a signal to buy. Notice on Fig. 1.0 instances when the ForexForecaster.ex4 line hovers above the 0.00 level and gets painted green as strongly bullish, and red as bearish (but with an overall bullish sentiment owing to the line being above the 0.00 signal level).
- If price bars somewhat trade above the lime colored cloud of the MA ribbon filled.89.21 custom indicator as depicted on Fig. 1.0, price is said to be pushing higher i.e. a trigger to go long on the asset of interest.
Stop Loss for Buy Entry: Place stop loss below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions hold sway in the market:
- If the line of the ForexForecaster.ex4 custom indicator breaks below the 0.00 as shown on Fig. 1.0, it is a trigger to exit or take profit at once. Notice the line will stay red while doing this.
- If lime cloud of the MA ribbon filled.89.21 custom indicator thins out and price closes below it as depicted on Fig. 1.0, it is a trigger to exit or take profit at once.
Sell Entry Rules
Enter a sell order in the market if the following chart or indicator pattern holds sway:
- If the line of the ForexForecaster.ex4 custom indicator break and hovers below the 0.00 signal level, it is an indication that price is experiencing downward pressures i.e. a signal to sell. The indicator’s line is most likely painted red, signal a strong bearish trend.
- If price bars somewhat trade below the red colored cloud of the MA ribbon filled.89.21 custom indicator as shown on Fig. 1.1, price is said to be pushing lower i.e. a trigger to go short on the asset of interest.
Stop Loss for Sell Entry: Place stop loss above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following rules or conditions hold sway:
- If the line (usually painted green) of the ForexForecaster.ex4 custom indicator breaks above the 0.00 as shown on Fig. 1.1, it is a trigger to exit or take profit at once.
- If red cloud of the MA ribbon filled.89.21 custom indicator thins out and price is able to close above it (refer to Fig. 1.1), it is a trigger to exit or take profit at once.
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The ForexForecaster.ex4 is an indicator that shifts between red and green to indicate bearish and bullish signal respectively.
The MA ribbon filled.89.21.ex4 is a technical study that offers a simple and quick way to determine the trend direction and possible price reversals.
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