FIBO Forex Scalping Trading Strategy

The FIBO forex scalping trading strategy is designed to allow traders take advantage of a fast moving market. This is why the strategy is laced with potent indicators that can be applied to the most liquid forex pairs.

Chart Setup

MetaTrader4 Indicators: Quantile_bands_1.3.ex4 (default setting), FIBO_S.ex4 (default setting)

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

Recommended Trading Sessions: New York Open | London Open

Currency Pairs: Low spread and liquid pairs, such as the EUR/USD, USD/JPY and GBP/USD

Download

Download the FIBO Forex Scalping Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

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

  1. If the color of the middle line of the Quantile_bands.ex4 custom indicator is lime green, it is an indication that price is being pushed higher i.e. a trigger to go long on assets of interest.
  2. If the histograms of the FIBO_S custom indicator align above the zero signal level, it is an indication of a bullish sentiment in the market. More so, if the histograms are colored green, it indicates a strong buy alert.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit on orders if the following holds true:

  1. If price closes below the middle line of the Quantile_bands.ex4 custom indicator as shown on Fig. 1.0, it is an indication that bullish momentum is weaning i.e. an exit or take profit is advised. Also watch to see if the middle band turns silver, as this is also a trigger to exit or take profit without delay.
  2. If the histograms of the FIBO_S custom indicator realigns below the 0.00 signal level, it is a trigger to exit or take profit accordingly.

Sell Entry Rules

Enter a sell in the market if the following rules or conditions hold sway on the charts:

  1. If the color of the middle line of the Quantile_bands.ex4 custom indicator is sandy brown, it is an indication that price is being pushed lower i.e. a trigger to sell the currency pair of interest.
  2. If the histograms of the FIBO_S custom indicator align below the zero signal level, it is an indication of a likely bearish sentiment in the market. More so, if the histograms are painted red, it indicates a strong sell alert.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit on position(s) if the following indicator or chart patterns get shown:

  1. If price closes above the middle line of the Quantile_bands.ex4 custom indicator as shown on Fig. 1.1, it is an indication that bearish momentum is halting i.e. an exit or take profit is advised. Also watch to see if the middle band turns silver, as this is also a trigger to exit or take profit straight away.
  2. If the histograms of the FIBO_S custom indicator realigns above the 0.00 signal level, it is a trigger to exit or take profit accordingly.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Quantile_bands_1.3.ex4 is a custom indicator that is fashioned to take after the Bollinger Bands, but its middle line is a mixture of the two outer quantiles.

The FIBO_S.ex4 is a custom indicator that is based on the Fibonacci sequence. It comes within its separate indicator window, with colored (green and red) histograms that depicts market signals (buy and sell).

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