Easy Forex Pips System That Works For Scalping

The easy Forex pips system for scalping is a short-term profit generating system that churns out many profitable trades and at the same time safeguards positions from large drawdowns.

The strategy takes advantage of a well-defined trading range found within most currency pairs.

This is based on the knowledge that new trends are formed based on their range likely highs and lows.

Good timing is of essence for traders to fully take advantage of this simple scalping system.

The strategy is based on the Alligator, mac-dot and Trix Forex indicators.

While getting started, lets bearing in mind that the strategy is also suited for cryptos, options and stocks, asides currencies.

Chart Setup

MetaTrader4 Indicators: Alligator.ex4 (Parameters Modified; jaws period=18, Teeth period=13, Lips period=10), macd-dot.ex4 (Inputs Variable Modified; FastEMA=60, SlowEMA=48, SignalSMA=18, Colors Width Modified; #2=5, #3=5), Trix.ex4 (Default Settings)

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

Recommended Trading Sessions: London, New York, Tokyo

Currency Pairs: Majors and any other low spread currency pair

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Download the Easy Forex Pips System That Works For Scalping

Buy Trade Example: EUR/USD (EURO / US Dollar), M1 Chart

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  • If the blue line of the Alligator Metatrader 4 forex indicator crosses below its lime and red lines in a bottom up fashion as shown on Fig. 1.0, the overall market sentiment is said to be bullish, as such a trigger to go long on the designated currency pair.
  • If the macd-dot custom indicator pops up a red signal dot on the activity chart as depicted on Fig. 1.0, price is said to be pushed higher i.e. a trigger to go long on the currency pair of interest.
  • If the red and blue lines of the Trix custom indicator break above the 0.00 horizontal level as seen on Fig. 1.0, bulls are said to be driving price to the upside, as such a buy alert is said to be imminent.

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 during the course of a bullish trend, the red line of the Alligator forex indicator intersects its lime line, it is pointing to diminishing bulls power, therefore a signal to exit or take profit immediately.
  • If the macd-dot custom indicator pops up a blue signal ball while a bullish trend is on course (see Fig. 1.0), price is said to be making a probable U-turn, as such an exit or take profit stance is recommended.
  • If the blue line of the Trix forex indicator dips below the zero horizontal level while a bullish trend is running, bulls are said to be stepping back from the market, hence an exit or take profit stance will suffice.

Sell Entry Rules

Enter a sell order if the following holds true:

  • If the blue line of the Alligator forex indicator crosses above its lime and red lines in a top downward manner as exemplified on Fig. 1.1, the general market sentiment is said to be bearish, hence it is a trigger to go short on the currency pair of focus.
  • If the macd-dot custom indicator pops up a blue signal dot on the activity chart as portrayed on Fig. 1.1, price is said to be pressured lower, thus an indication of increased bears activity in the market, as such a signal to go short on the designated fx pair.
  • If the red and blue lines of the Trix custom indicator break below the 0.00 horizontal level as exemplified on Fig. 1.1, more and more bears are said to be driving market sentiments, thus a signal to go short on the selected currency pair.

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 red line of the Alligator forex indicator intersects its lime line while a bearish trend is running, it is signaling weaning bears power i.e. a trigger to exit or take profit at once.
  • If the macd-dot custom indicator pops up a red signal ball during the course of a bearish trend (refer to Fig. 1.1), a bullish reversal is said to be forthcoming, as such an exit or take profit stance is advised.
  • If the blue line of the Trix forex indicator surges above the zero horizontal level while a bearish trend is on course, bears are said to be closing their positions increasingly, hence an exit or take profit stance will do.

Sell Trade Example: EUR/USD (EURO / US Dollar), M1 Chart

Fig. 1.1

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Download the Easy Forex Pips System That Works For Scalping

About The Forex Technical Indicators Used

The Alligator is a technical indicator by Bill Williams, introduced in 1995, the indicator is comprised of three lines that are overlaid on the activity chart.

The lines represent the jaw, the teeth and the lips of the Alligator.

Forex traders tend to use this indicator to gauge trend and its likely direction.

The macd-dot is a technical indicator that delivers clearly visible buy and sell signal via the use of its signal dots i.e. red and blue, with each defining a buy and sell trend respectively.

The Trix indicator is a Metatrader 4 momentum indicator that was created by Jack Hutson in the 1980’s.

It finds its use in spotting the percentage change in a triple exponentially smoothed moving average.

Easy Installation

Start using this forex strategy in just 5 minutes. Click here to get started now.

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