Correlation Cycle Forex Scalping Strategy

The Correlation Cycle forex scalping strategy provides you with plenty of scalping opportunities during the London and New York trading sessions.

This strategy follows the short-term trend with the help of the Correlation forex indictor.

To learn how it works, follow the steps below:

Chart Setup

MetaTrader4 Indicators: Correlation-mt4-indicator.ex4 (Inputs Variable Modified; PCPEriod_fast=16), ASCTrendCycle.ex4 (Inputs Variable Modified; MAShort=33)

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

Recommended Trading Sessions: London, New York

Currency Pairs: Any pair

Download

Download the Correlation Cycle Forex Scalping Strategy

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 dark orchid line of the ASCTrendCycle.ex4 custom MT4 indicator break and stays above the 50.00 level as depicted on Fig. 1.0, price is said to be taken higher, i.e. a trigger to go bullish on the designated currency pair.
  2. If the lime upward pointing arrow pops up on the activity chart, while a corresponding blue upward pointing arrow is seen within the Correlation-mt4-indicator window (refer to Fig. 1.0), a trigger to go bullish is said to be in the offing.

Stop Loss for Buy Entry: Place stop loss below short-term support.

Exit Strategy/Take Profit for Buy Entry

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

  1. If while a bullish trend is ongoing, the dark orchid line of the ASCTrendCycle.ex4 custom MT4 indicator dips below the 50.00 level, an exit or take profit stance is recommended.
  2. If the red downward pointing arrow that is seen on the chart window, along with a corresponding yellow downward pointing arrow within the Correlation-mt4-indicator window sets in (refer to Fig. 1.0), an exit or take profit is advised.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the dark orchid line of the ASCTrendCycle.ex4 custom MT4 indicator break and hovers below the 50.00 level as illustrated on Fig. 1.1, price is said to be pushed lower, i.e. a trigger to go short on the currency pair of focus.
  2. If the red downward pointing arrow pops up on the price chart, while a corresponding yellow downward pointing arrow is seen within the Correlation-mt4-indicator window (check Fig. 1.1), a trigger to sell the designated fx pair will suffice.

Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If while a bearish trend is running, the dark orchid line of the ASCTrendCycle.ex4 custom MT4 indicator rises above the 50.00 level, an exit or take profit posture should be taken.
  2. If the lime upward pointing arrow that is shown on the chart window, along with a corresponding blue upward pointing arrow within the Correlation-mt4-indicator window are displayed as depicted on Fig. 1.1, an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

Free Download

Download the Correlation Cycle Forex Scalping Strategy

The Correlation-mt4-indicator.ex4 is an oscillator that delivers buy and sell signals based on the cross-over of two lines.

The ASCTrendCycle.ex4 custom indicator is a mix of the short and long moving average on a default cycle of 10.

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