Bands Forex Scalping Trading Strategy

The Bands forex scalping trading strategy is made up of a reliable trend following indicator and an oscillator.

It works well for the lower timeframe’s such as the M1, M5 and M15 charts.

Learn how to generate buy and sell scalping signals with this strategy:

Chart Setup

MetaTrader4 Indicators: BBands_Stop_BO.ex4 (Inputs Variable Modified; Length=25), BbSq-OsMA.ex4 (Inputs Variable Modified; SignalSMA=36)

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

Recommended Trading Sessions: Any

Currency Pairs: Any small spread forex 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 pattern gets put on display:

  1. If the dotted chartreuse line of the BBands_Stop_BO.ex4 indicator aligns slightly below price bars as seen on Fig. 1.0, price is said to be taken higher i.e. a trigger to buy the stipulated currency pair.
  2. If the black line and histograms (medium blue & steel blue) of the BbSq-OsMA.ex4 custom indicator align above the 0.00 level as depicted on Fig. 1.0, the sentiment in the market is said to be bullish i.e. a trigger to go long on the selected forex pair.

Stop Loss for Buy Entry: Place stop loss below dotted chartreuse line.

Exit Strategy/Take Profit for Buy Entry

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

  1. If while a buy signal is running, the BBands_Stop_BO.ex4 custom indicator pops up an orange dotted line placed somewhat above the candlesticks, an exit or take profit is recommended.
  2. If the black line of the BbSq-OsMA.ex4 custom indicator breaks below the 0.00 level as seen on Fig. 1.0, it is a trigger to exit or take profit at once.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the dotted orange line of the BBands_Stop_BO.ex4 indicator aligns considerably above price bars as illustrated on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the selected forex pair.
  2. If the black line and histograms (medium blue & steel blue) of the BbSq-OsMA.ex4 custom indicator align below the 0.00 level as illustrated on Fig. 1.1, the sentiment in the market is said to be bearish i.e. a trigger to go short on the currency pair of focus.

Stop Loss for Sell Entry: Place stop loss above dotted orange line.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a sell signal is ongoing, the BBands_Stop_BO.ex4 custom indicator pops up a dotted chartreuse line placed somewhat below the candlesticks, an exit or take profit will suffice.
  2. If the black line of the BbSq-OsMA.ex4 custom indicator breaks above the 0.00 level as shown on Fig. 1.1, it is a trigger to exit or take profit forthwith.

Sell Trade Example

Fig. 1.1

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The BBands_Stop_BO.ex4 is a trend indicator and a modified Bollinger Bands.

The indicator finds its use in the gauging trend change, along with setting stop orders.

The BbSq-OsMA.ex4 custom indicator is the bbsqueeze indicator but with OsMA as momentum.