Scalping doesn’t need to scare you, if approached correctly, especially when traders adopt a non-complex method of analysis.
The buy and sell signals from this strategy are derived from a set of rules solely dependent on technical analysis indicators.
The forex signal scalping strategy can be deployed on the 1 min, 5 min and 15 min trading charts, hence making it a good choice for forex scalpers who are looking for quick profits.
Chart Setup
MetaTrader4 Indicators: Arrows_Signal.ex4 (Inputs Variable Modified; dist=72), reducedlagma.ex4 (Inputs Variable Modified; MA_Period=60, MA_Sampling_Period=24)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: Any (London, New York, Tokyo)
Currency Pairs: Any pair
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy entry if the following indicator or chart setup gets put on display:
- If the aqua upward pointing arrow of the Arrows_Signal.ex4 custom MT4 indicator gets placed slightly below the candlesticks as shown on Fig. 1.0, the sentiment in the market is said to be bullish i.e. a signal to buy the designated currency pair.
- If the blue line of the reducedlagma.ex4 custom indicator crosses its red line bottom up as seen on Fig. 1.0, a buy signal is dully advised.
Stop Loss for Buy Entry: Place stop loss below the rising blue line.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If while a buy signal is ongoing, the red downward pointing arrow of the Arrows_Signal.ex4 custom MT4 indicator pops up above price bars as depicted on Fig. 1.0, more bulls are said to be exiting their positions, hence an exit or take profit will suffice.
- If price closes below the blue line of the reducedlagma.ex4 custom indicator, it is signaling weaning bulls power, as such an exit or take profit will do.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red downward pointing arrow of the Arrows_Signal.ex4 custom MT4 indicator gets aligned somewhat above the candles as illustrated on Fig. 1.1, the sentiment in the market is believed to be bearish i.e. a trigger to sell at once.
- If the blue line of the reducedlagma.ex4 custom indicator crosses its red line top downward as shown on Fig. 1.1, a sell signal is dully recommended.
Stop Loss for Sell Entry: Place stop loss above the falling blue line.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a sell signal is running, an aqua upward pointing arrow of the Arrows_Signal.ex4 custom MT4 indicator gets displayed below price bars as illustrated on Fig. 1.1, more bears are said to be leaving the market, hence a trigger to exit or take profit straightway.
- If price closes above the blue line of the reducedlagma.ex4 custom indicator, it is signaling halting bears power, hence a trigger exit or take profit is advised.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The Arrows_Signal.ex4 custom indicator is a trend following indicator that uses arrows (red and aqua) to define price direction.
The upwards pointing arrow depicts a buy signal, while the downward pointing arrow depicts a sell signal.
The reducedlagma.ex4 custom indicator is an advanced moving average indicator that eliminates most lag, thereby reacting faster to changes in price.