Price Bend Forex Scalping Trading Strategy

The concept of forex scalping is used to describe traders who hold position(s) for a short time period in a bid to make profit.

The Price Bend forex trading scalping strategy allows you attain this feat in a simple but yet reliable manner.

Chart Setup

MetaTrader4 Indicators: SmPriceBend-T01.ex4 (default setting), GMMA_Long.ex4 (default setting), Linear_Regression_Line.ex4 (color modified; red)

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

Recommended Trading Sessions: New York Open | London Open

Currency Pairs: All major currency pairs

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Download the Price Bend 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 yellow line of the SmPriceBend-T01 custom indicator breaks above the 0.00 signal level, the market sentiment is said to be bullish i.e. a trigger to go long on the asset of interest.
  2. If the blue lines of the GMMA_Long.ex4 custom indicator intersects the red Linear_Regression_Line.ex4 bottom up as shown on Fig. 1.0 with price trading somewhat above these lines, price is aid to be pressured higher i.e. a signal to buy the FX pair of interest.

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 hold sway in the market:

  1. If the yellow line of the SmPriceBend-T01 custom indicator breaks below the 0.00 as depicted on Fig. 1.0, it is an indication that price is making a U-turn, as such traders are advised to exit or take profit accordingly.
  2. If the red line of the Linear_Regression_Line.ex4 indicator intersects the blue lines of the GMMA_Long.ex4 custom indicator top downward, it is a signal that bullish pressure is weaning and exit or take profit is advised.

Sell Entry Rules

Initiate a sell order if the following chart or indicator pattern gets displayed:

  1. If the yellow line of the SmPriceBend-T01 custom indicator dips below the 0.00 signal level, the market sentiment is said to be bearish i.e. a trigger to go short on the Forex pair of interest.
  2. If the blue lines of the GMMA_Long.ex4 custom indicator intersects the red Linear_Regression_Line.ex4 top downwards as shown on Fig. 1.1 with price trading somewhat below these lines, price is said to be pressured lower i.e. a signal to sell the asset of interest.

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 rules or conditions are in place:

  1. If the yellow line of the SmPriceBend-T01 custom indicator climbs to breaks above the 0.00 as depicted on Fig. 1.1, it is an indication that price is making a U-turn from its earlier bearish trend, as such traders are advised to exit or take profit accordingly.
  2. If the red line of the Linear_Regression_Line.ex4 indicator intersects the blue lines of the GMMA_Long.ex4 custom indicator bottom up, it is a signal that bearish pressure is weaning and exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

GMMA_Long.ex4 indicator is a variant of the Guppy Multiple Moving Averages (GMMA) and is used in spotting changing trend, via a technique that combines two groups of moving averages with varying time periods.

The SmPriceBend-T01 indicator is used in gauging the first price change derivative or simply the speed of trend and its sign.

The Linear_Regression_Line.ex4 custom indicator is primarily used in determining the direction of a trend. The indicator essentially measures the line of best fit for a price series.

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