The need to make consistent profits in the forex market is one that every trader out there dreams of and will certainly do anything to enjoy.
Forex scalping is one such ways that can provide steady returns and I have developed the Arrows forex trading strategy to carefully meet such needs.
The strategy takes into account basic indicators and can used on the 1-Minute, 5-Minute and 15-Minute trading charts.
Chart Setup
MetaTrader4 Indicators: Carter_MA.ex4 (default setting), binaryarrows.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: Any
Currency Pairs: Low spread pairs, such as the EUR/USD and USD/JPY
Download
Download the Arrows Forex Trading Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy in the market if the following indicator or chart patterns get displayed:
- If an aqua colored upward pointing arrow of the binaryarrows.ex4 custom indicators forms below the candlesticks as seen on Fig. 1.0, it is an indication that price is being pressured to the upside i.e. a trigger to go bullish on the currency pair of focus.
- If the lines of the Carter_MA.ex4 custom indicator intersect with price opening and closing above the indicator’s lines, initiate a buy entry on the open of the next candlestick as shown on Fig. 1.0.
Stop Loss for Buy Entry: Place stop loss below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit on long entries if the following rules or conditions are in place:
- If the binaryarrows.ex4 custom indicator forms a red downward pointing arrow that is aligned above the candlesticks as depicted on Fig. 1.0, price is said to losing its bullish momentum i.e. a trigger to exit or take profit accordingly.
- If price breaks and closes below the filled blue line of the Carter_MA.ex4 custom indicator during a bullish trend, it is an indication that bulls are exiting the market, as such an exit or take profit on position(s) is appropriate.
Sell Entry Rules
Enter a sell order in the market if the following indicator or chart pattern gets displayed:
- If a red colored downward pointing arrow of the binaryarrows.ex4 custom indicators forms above the candlesticks as seen on Fig. 1.1, it is an indication that price is experiencing some downward pressures i.e. a signal to trigger sell entries.
- If the lines of the Carter_MA.ex4 custom indicator intersect with price opening and closing below the indicator’s lines, initiate a sell entry on the open of the next candlestick as shown on Fig. 1.1.
Stop Loss for Sell Entry: Place stop loss above immediate resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the follow rules or conditions hold sway in the market:
- If the binaryarrows.ex4 custom indicator forms an aqua upward pointing arrow that is aligned below the candlesticks as shown on Fig. 1.1, price is said to losing its bearish momentum i.e. a trigger to exit or take profit accordingly.
- If price breaks and closes above the filled blue line of the Carter_MA.ex4 custom indicator during a bearish trend, it is an indication that the bears are leaving the market, as such an exit or take profit on position(s) is appropriate.
Sell Trade Example
Fig. 1.1
Free Download
Download the Arrows Forex Trading Strategy
About The Trading Indicators
The Carter_MA.ex4 is a custom indicator that is made up of 5 lines that represents 5 different moving averages i.e. 8, 21, 50, 100 and 200.
It is a fine blend that allows traders spot trend and also define support and resistance levels.
The binaryarrows.ex4 is a trend following indicator that forms an aqua (bullish trend) or red (bearish trend) colored arrows below or above price bars.