The Ichi forex scalping trading strategy takes advantage of a unique blend of custom indicators in delivering a well-crafted forex scalping strategy that traders can rely upon.
The building blocks of such a strategy take into account time and profitability, two vital components that scalpers have their eyes fixed on.
Get ready as we explore this amazing strategy that is designed to walk scalpers through the hurdles of trading the market.
Chart Setup
MetaTrader4 Indicators: uSoho_Ichi_Average.ex4 (default setting), Holt_double_exponential_smoothing_trend.ex4 (Input Variable modified; Estimate period=28.66, Trend period=20.0)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute
Recommended Trading Sessions: London, New York
Currency Pairs: Low spread pairs, max. spread 4 pips
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a buy order if the following holds true:
- If price breaks somewhat above the Tenkan Sen (red line) and Kijun Sen (blue line) of the uSoho_Ichi_Average.ex4 custom indicator in a bullish manner, plus price trading above the cloud shaded Sandy Brown (Senkou Span), price is said to be bullish i.e. a signal to buy the asset of interest.
- If the gray line and lime histograms of the Holt_double_exponential_smoothing_trend.ex4 custom indicator forms above the 0.00 signal level as shown on Fig. 1.0, it is a signal to go long on the currency of focus.
Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions take precedence:
- If the Tenkan Sen (red line) crosses the Kijun Sen (blue line) of the uSoho_Ichi_Average.ex4 custom indicator top downward as depicted on Fig. 1.0, an exit or take profit is advised.
- If the gray line and an orange histogram break below the 0.00 signal level, it is a trigger to exit or take profit without delay.
Sell Entry Rules
Initiate a sell entry if the following chart or indicator patterns take center stage:
- If price breaks somewhat below the Tenkan Sen (red line) and Kijun Sen (blue line) of the uSoho_Ichi_Average.ex4 custom indicator in a bearish manner, plus price trading below the cloud shaded Thistle (Senkou Span), price is said to be bearish i.e. a signal to sell the asset of interest.
- If the gray line and orange histograms of the Holt_double_exponential_smoothing_trend.ex4 custom indicator aligns below the 0.00 signal level as shown on Fig. 1.1, it is a signal to go short on the currency of focus.
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 orders if the following holds sway:
- If the Tenkan Sen (red line) crosses the Kijun Sen (blue line) of the uSoho_Ichi_Average.ex4 custom indicator bottom up as shown on Fig. 1.1, an exit or take profit is advised.
- If the gray line and a lime colored histogram break above the 0.00 signal level, it is a trigger to exit or take profit straight away.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The Holt_double_exponential_smoothing_trend.ex4 is a form of an “on-chart average like” custom indicator that can forecast trend.
The indicator oscillates above (buy) or below (sell) its signal level, i.e. the 0.00 level.
The uSoho_Ichi_Average.ex4 custom indicator is an Ichimoku with moving average as a substitute for the middle of price channel (Donchian Channel).