Forex scalping requires that you have the skills of getting in and out of positions using a sound scalping strategy.
You must also be able to make decisions in a very speedy manner and thus, be at alert at all time.
If you lose focus for a bit, you could miss an opportunity or even crash out of the market in a worst case scenario.
The Squeeze Arrows scalper forex trading strategy will keep you in the know at all time when scalping the market looking to profit from small price movements.
Chart Setup
MetaTrader4 Indicators: buysellarrowscalper.ex4 (Default Setting), Bollinger_Squeeze_v3.ex4 (Inputs Variable Modified; totalBars=3000, bolDev=3.0, keltPrd=18, keltFactor=2.0, momPrd=24)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: London, New York, Tokyo
Currency Pairs: Small spread pairs (max. 4 pips)
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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 get put on display:
- If the dodger blue upward pointing arrow and downward spiked line of the buysellarrowscalper.ex4 custom MT4 indicator gets aligned slightly below price bars as shown on Fig. 1.0, the sentiment in the market is said to be bullish i.e. a signal to buy the stipulated currency pair.
- If the histograms (lime green & light green) of the Bollinger_Squeeze_v3 custom indicator aligns above the 0.00 level (refer to Fig. 1.0), price is said to be pushed to the upside i.e. a trigger to go long on the designated forex pair.
Stop Loss for Buy Entry: Place stop loss 2 pips below short-term support.
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 buysellarrowscalper.ex4 custom indicator displays a red downward pointing arrow placed somewhat above the candles as seen on Fig. 1.0, traders should consider exiting or taking profit immediately.
- If an Indian red histogram is seen below the 0.00 level during a bullish signal, an exit or take profit is advised.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red downward pointing arrow and upward spiked line of the buysellarrowscalper.ex4 custom MT4 indicator gets placed fairly above the candlesticks as depicted on Fig. 1.1, price is said to be taken lower i.e. a signal to sell the selected currency pair.
- If the histograms (Indian red & light pink) of the Bollinger_Squeeze_v3 custom indicator aligns below the 0.00 level (check Fig. 1.1), price is said to be taken lower i.e. a trigger to go short on the specified forex pair.
Stop Loss for Sell Entry: Place stop loss 2 pips above short-term resistance.
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 buysellarrowscalper.ex4 custom indicator displays a dodger blue upward pointing arrow placed fairly below the candles as illustrated on Fig. 1.1, an exit or take profit should be considered straightaway.
- If a lime green histogram forms above the 0.00 level during a bearish signal, an exit or take profit is recommended.
Sell Trade Example
Fig. 1.1
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Download the Squeeze Arrows Scalper Forex Trading Strategy
The Buysellarrowscalper.ex4 custom indicator is a trend following indicator.
It changes its color between a red downward pointing arrow (with upward spikes place on its red line) aligned above price bars to depict a bears market, and a dodger blue upward pointing arrow (with downward spikes place on its dodger blue line) aligned below price bars to trigger a buy market.
The Bollinger_Squeeze_v3.ex4 custom indicator uses histograms to measure price volatility.