This forex scalping strategy consists of an easy to read buy/sell arrow indicator and trading oscillator which oscillates above and below 0.00 for bullish and bearish price action.
This strategy will work the best on the smaller timeframe’s, such as the: 1-Minute, 5-Minute and 15-Minute charts. Learn the rules to buy and sell pairs below and download this strategy for free.
Chart Setup
MetaTrader4 Indicators: BBalert_Arrows.ex4 (default setting), ATR_MA_Oscillator.ex4 (default setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: Tokyo | New York | London
Currency Pairs: Low spread pair (Max. 4 pips)
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Download the BB Alert Arrows Forex Trading Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Initiate a buy entry if the following conditions or rules holds true:
- If the BBalert_Arrows.ex4 custom indicator forms a yellow upward pointing arrow that is aligned below price bars, it is an indication that price is experiencing some bullish sentiment i.e. a buy trigger.
- If the dodger blue histograms of the ATR_MA_Oscillator.ex4 custom indicator is aligned above the zero signal level, it is an indication that price is being pushed higher i.e. a trigger to go bullish on the pair of interest.
Stop Loss for Buy Entry: Place stop loss 1 pip below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following indicator or chart pattern gets displayed:
- If the BBalert_Arrows.ex4 custom indicator forms a yellow downward pointing arrow that is aligned above price bars as depicted on Fig. 1.0, it is an indication that the bullish market sentiment is weaning i.e. a trigger to exit or take profit.
- If the dodger blue histograms of the ATR_MA_Oscillator.ex4 custom indicator gets realigned below its 0.00 signal level, it is an indication that bulls are exiting the market, as such an exit or take profit is appropriate.
Sell Entry Rules
Enter a sell in the market if the following rules or conditions take precedence:
- If the BBalert_Arrows.ex4 custom indicator forms a yellow downward pointing arrow that is aligned above the candlesticks as seen on Fig. 1.1, it is an indication that price is undergoing bearish sentiment, thus giving way to a sell trigger.
- If the dodger blue histograms of the ATR_MA_Oscillator.ex4 custom indicator is aligned below the 0.00 signal level, it is an indication that price is being pushed lower i.e. a trigger to go bearish on the pair of interest.
Stop Loss for Sell Entry: Place stop loss 1 pip above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following chart pattern gets displayed:
- If the BBalert_Arrows.ex4 custom indicator forms a yellow upward pointing arrow that is placed below the candlesticks as seen on Fig. 1.1, it is an indication that the bears are closing their position(s), consequently, a trigger to exit or take profit without delay.
- If the dodger blue histograms of the ATR_MA_Oscillator.ex4 custom indicator gets realigned above its 0.00 signal level, it is an indication that the market is witnessing a reversal, as such an exit or take profit is advised.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The ATR_MA_Oscillator.ex4 indicator is an OsMA type oscillator but interpreted as the ATR oscillator.
When its histogram breaks above the 0.00 signal level, it is known as a bullish signal and vice versa.
The BBalert_Arrows.ex4 will draw yellow upward pointing arrow (bullish signal) and downward pointing arrows (bearish signal), within the chart window, as a way of defining trends.