Dynamic Oscillators Forex Scalping Trading Strategy

Understanding how scalping works is crucial to surviving the currency trading market. The notion that surrounds forex trading is one that is risky, but scalping simplifies trading and dampens the risks.

I have designed a strategy that is conscious all these risks and can be applied to low spread currency pairs.

Chart Setup

MetaTrader4 Indicators: Detrended_Synthetic_Price_goscillators.ex4 (default setting), DynamicRS_C.ex4 (default setting)

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

Recommended Trading Sessions: New York Open | London Open

Currency Pairs: USD/CHF, EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CAD, NZD/USD, EUR/CHF, CAD/JPY, CHF/JPY, AUD/NZD

Download

Download the Dynamic Oscillators Forex Scalping Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets displayed:

  1. If the line of the DynamicRS_C.ex4 custom indicator is painted aqua, it is a sign that price is undergoing bullish momentum and a buy entry on assets of interest is advised.
  2. If the lines (dotted and filled) of the Detrended_Synthetic_Price_goscillators.ex4 custom indicator are aligned above the zero signal level and its filled line is painted lime green, then price is said to be bullish i.e. a signal to go long.

Stop Loss for Buy Entry: Place stop loss below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules of conditions hold sway:

  1. If the line of the DynamicRS_C.ex4 custom indicator gets painted yellow during an uptrend, it is pointer that price is losing steam on its way up and an exit or take profit is the most probable line of action.
  2. If the filled line of the Detrended_Synthetic_Price_goscillators.ex4 custom indicator gets painted dark gray during an uptrend, it is a trigger to exit or take profit without delay.

Sell Entry Rules

Enter a sell in the market if the following indicator or chart patterns hold sway:

  1. If the line of the DynamicRS_C.ex4 custom indicator gets painted red, it is a sign that price is experiencing bearish momentum i.e. a signal to go short or sell the currency pair of choice.
  2. If the lines (dotted and filled) of the Detrended_Synthetic_Price_goscillators.ex4 custom indicator are aligned below the zero signal level and its filled line gets painted orange red, then price is said to be bearish i.e. a signal to go short.

Stop Loss for Sell Entry: Place stop loss above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

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

  1. If the line of the DynamicRS_C.ex4 custom indicator gets painted yellow during a downtrend, it is pointer that price is losing steam on its way down and an exit or take profit is highly advised.
  2. If the filled line of the Detrended_Synthetic_Price_goscillators.ex4 custom indicator gets painted dark gray during a downtrend, it is a trigger to exit or take profit straight away.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Detrended_Synthetic_Price_goscillators.ex4 was designed by John Ehlers and has numerous ways in which it can be used.

I deployed the fixed levels (the zero signal level) in using this indicator i.e. above the 0.00 level is bullish, while below that level is seen as bearish.

The DynamicRS_C.ex4 on the other hand is a trend indicator that reveals price change.

When the line of indicator is painted red is denotes a bearish signal, while aqua depicts bullish market sentiment.

The yellow filled line reveals when trend is about changing, hence why we exit at such levels.

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