ATR Trend Forex Scalping Strategy

If scalping is something you’re interested in, continue reading how to setup and trade the ATR Trend scalping strategy on this page.

This strategy is designed to identify spots in the market that offer some of the most suitable buy and sell scalping trading opportunities.

It is a simple strategy that can be applied on low spread forex pairs.

Chart Setup

MetaTrader4 Indicators: ATR Channel.ex4 (Colors Width Modified; #0=2), forex-mt4-trend-indicator.ex4 (Default Setting), Forex_Trend_Signalsv1.ex4 (Default Setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute

Recommended Trading Sessions: Any

Currency Pairs: Any pair with low spread such as EUR/USD and GBP/USD.

Download

Download the ATR Trend Forex Scalping Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy position if the following indicator or chart pattern gets put on display:

  1. If price opens and close above the aqua mid-line of the ATR Channel custom indicator, it is an indication of bullish pressures i.e. a signal to buy the supported currency pair.
  2. If the blue upward pointing arrow and candle-like bodies of the forex-mt4-trend-indicator gets aligned slightly below the candlesticks, it is a signal to buy the designated forex pair.
  3. If the lime and yellow bars of the Forex_Trend_Signalsv1 indicator pops up within its window, buyers are said to be increasingly pushing price higher, as such a buy trigger is said to be imminent.

Stop Loss for Buy Entry: Place stop loss below rising aqua line.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If while a bullish signal is ongoing, price opens and closes below the aqua mid-line of the ATR Channel, it is a signal to exit or take profit at once.
  2. If the red downward pointing arrow of the forex-mt4-trend-indicator gets displayed within the activity chart (refer to fig. 1.0) during a buy trend, an exit or take profit is advised.
  3. If while price is surging higher a red bar forms within the Forex_Trend_Signalsv1 indicator window, bulls’ power is said to be halting i.e. an exit or take profit is advised.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If price opens and close below the aqua mid-line of the ATR Channel custom indicator, it is an indication of increasing bears power, as such a sell trigger is supported.
  2. If the red downward pointing arrow and candle-like bodies of the forex-mt4-trend-indicator gets aligned fairly above the candlesticks, it is a signal to sell the specified forex pair.
  3. If the red and yellow bars of the Forex_Trend_Signalsv1 indicator pops up within its window, sellers are said to be increasingly pushing price lower, as such a sell trigger is said to be looming.

Stop Loss for Sell Entry: Place stop loss above falling aqua line.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a bearish signal is running, price opens and closes above the aqua mid-line of the ATR Channel, it is a signal to exit or take profit forthwith.
  2. If the blue upward pointing arrow of the forex-mt4-trend-indicator gets displayed on the price chart (check Fig. 1.1) during a sell trend, an exit or take profit is recommended.
  3. If while price is dipping lower a lime bar forms within the Forex_Trend_Signalsv1 indicator window, bears’ power is said to be weaning i.e. an exit or take profit will suffice.

Sell Trade Example

Fig. 1.1

Free Download

Download the ATR Trend Forex Scalping Strategy

The ATR Channels Forex_Trend_Signalsv1 custom indicator is an average true range channel that gauges the volatility of the market.

The forex-mt4-trend-indicator Forex_Trend_Signalsv1 is a trend indicator just as conveyed within its name, with its red arrows signifying a sell, while its blue arrows connotes a buy signal.

The Forex_Trend_Signalsv1.ex4 custom indicator is made up of two moving averages and the CCI indicator period set at 236.

The lime colored vertical bars within the chart window indicates a bullish trend, the red vertical indicates a bearish trend and the yellow bars shows range-bound trend.

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