A lot of attention is needed for a trader who is willing to scalp the market due to its demanding and time-consuming requirements.
However, the good thing here is that you get intermittent breaks off the market, considering that you will be involved in quick opening and liquidation of orders.
The Arrow Signal forex scalping strategy is predefined to look for short-term scalping opportunities in the currency market that allows for quick profitable entries and exits.
Chart Setup
MetaTrader4 Indicators: Arrow_Signal.ex4 (Inputs Variable Modified; dist=48), realMACD.ex4 (Inputs Variable Modified; FastMAPeriod=36, SlowMAPeriod=52, SignalMAPeriod=18)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: Any
Currency Pairs: Any low spread forex pair for best trading results (EUR/USD, GBP/USD, USD/JPY,..)
Download
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the aqua upward pointing arrow of the Arrow_Signal.ex4 custom indicator gets aligned somewhat below price bars as shown on Fig. 1.0, it is an indication of price pushing to the upside i.e. a signal to go long on the desired currency pair.
- If the red line of the realMACD.ex4 custom MT4 indicator crosses the blue line bottom up, while yellow histograms forms above the 0.00 level as seen on Fig. 1.0, the prevalent market sentiment is said to be bullish i.e. a trigger to buy the designated currency pair.
Stop Loss for Buy Entry: Place stop loss below short-term support level.
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 Arrow_Signal.ex4 custom indicator forms a red downward pointing arrow that is aligned above the candlesticks as depicted on Fig. 1.0, it is an indication of weaning bulls power i.e. a trigger to exit or take profit at once.
- If a yellow histogram gets aligned below the 0.00 level during a buy signal, it is suggestive of an exit or take profit stance.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red downward pointing arrow of the Arrow_Signal.ex4 custom indicator gets placed slightly above the candles as illustrated on Fig. 1.1, it is an indication of downward price pressures i.e. a signal to sell the specified forex pair.
- If the red line of the realMACD.ex4 custom MT4 indicator crosses the blue line in top downward manner, while the yellow histograms gets placed below the 0.00 level (refer to Fig. 1.1), a sell signal is duly advised.
Stop Loss for Sell Entry: Place stop loss above short-term resistance level.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If while a sell signal is running, the Arrow_Signal.ex4 custom indicator forms an aqua upward pointing arrow that is placed below the candlesticks as shown on Fig. 1.1, it is an indication of halting bears power i.e. a trigger to exit or take profit without delay.
- If a yellow histogram gets placed above the 0.00 level during a bearish trend, it is an indication that buyers are winning, as such an exit or take profit will do.
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The Arrow_Signal.ex4 custom indicator is built on the CCI indicator, with the indicator delivering buy and sell signals by listening to when the CCI crosses the zero mark (designating it with an aqua or red arrow).
The indicator has been able to minimize lag, thereby increasing its accuracy.
The realMACD.ex4 indicator is a trend following indicator that is built after the traditional MACD MT4 indicator.