The 1-Minute Forex scalping strategy for the CHF/SGD currency pair is based on Renko bricks that have been transformed into brick bars for the ease of use.
The strategy establishes a strong upward or downward trend following bias using its predefined entry rules.
Users are alerted to bullish sentiments when the Stochastic Oscillator line breaks above the 50.00 level, along with confirmation signals from the Renko indicator.
MetaTrader 4 Indicators: RenkoColorBars1.ex4 (Default Setting), Stochastic Oscillator.ex4 (Parameters Modified; %K period=19, %D period=6, Slowing=9)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: London, New York, Tokyo
Currency Pairs: CHF/SGD + any other low spread pair
Buy Trade Example: CHF/SGD (Swiss Franc / Singapore Dollar), M1 Chart
Long Entry Rules
Initiate a buy entry if the following indicator or chart pattern gets put on display:
- If the silver bars of the RenkoColorBars1 custom indicator get displayed on the activity chart as illustrated on Fig. 1.0, price is said to be driven to the upside i.e. a trigger to buy the selected currency pair.
- If the light sea green and red dotted lines of the Stochastic Oscillator Metatrader 4 forex indicator break and run above the 50.00 reference level as depicted on Fig. 1.0, bulls are said to be driving market sentiments, thus a buy alert will suffice.
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:
- If while a bullish trend is on course, the RenkoColorBars1 custom indicator pops up a fire brick bar on the chart window, it is indicative of weaning bulls power, thus a signal to exit or take profit straightaway.
- If the light sea green line of the Stochastic Oscillator dips below the 50.00 horizontal level while a bullish trend is ongoing (refer to Fig. 1.0), a bearish reversal is said to be looming, thus an exit or take profit stance is recommended.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the fire brick bars of the RenkoColorBars1 custom indicator gets displayed on the chart window as seen on Fig. 1.1, price is said to be pressured lower, as such a sell alert is said to be on the horizon.
- If the light sea green and red dotted lines of the Stochastic Oscillator indicator break and hover below the 50.00 horizontal level as shown on Fig. 1.1, the overall market sentiment is said to be bearish, hence a trigger to go short on the currency pair of focus.
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:
- If the RenkoColorBars1 custom indicator displays a silver bar during the course of a bearish trend, it is pointing to diminishing bears power, therefore an exit or take profit stance is advised.
- If the light sea green line of the Stochastic Oscillator spikes above the 50.00 horizontal level during a bearish trend (see Fig. 1.1), price is said to be making a likely U-turn, as such it is a trigger to exit or take profit at once.
Sell Trade Example: CHF/SGD (Swiss Franc / Singapore Dollar), M1 Chart
About The Forex Technical Indicators Used
The RenkoColorBars1 custom indicator is built on the Renko brick chart, which in turn is based on time or volume, as well as price change.
The RenkoColorBars1 indicator disregards time and volume, it only takes price changes into account.
The Stochastic Oscillator is a momentum oscillator that is attributed to George Lane.
The indicator is made up of two lines, the %K fast line and the %D slow line, and oscillates between 1 and 100.
Basically, the Stochastic indicator gauges the relationship between an assets closing price and its price range over a specified time period.
Start using this forex strategy in just 5 minutes. Click here to get started now.