sMAMA Forex Scalping Strategy

The sMAMA forex scalping strategy deploys a simple set of trading rules and integrates 3 free forex indicators in generating buy/sell signals. Download this strategy below.

Chart Setup

MetaTrader4 Indicators: sMAMA.ex4 (width modified = 2), Stochastic_Cross_Alert.ex4 (default setting), Fisher_org_v12.ex4 (default setting)

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

Recommended Trading Sessions: New York Open & London Open

Currency Pairs: Any low spread pair, for example: EUR/USD, USD/JPY, GBP/USD,..

Download

Download the sMAMA Forex Scalping Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following chart or indicator patterns are on display:

  1. If the Lawn green upward pointing arrow of the Stochastic_Cross_Alert.ex4 indicator forms below the candlesticks, price is said to be pressured higher i.e. a bullish signal.
  2. If the Blue line of the sMAMA.ex4 custom indicator crosses its red line bottom up, it is a trigger to go long on the pair of interest.
  3. If the blue and red line of the Fisher_org_v12.ex4 indicator breaks above the 0.00 signal level, it is a trigger to go long on currency pair in view.

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 or conditions take precedence:

  1. If the red downward pointing arrow of the Stochastic_Cross_Alert.ex4 indicator forms above the candlesticks, it is a signal that buyers are weaning i.e. an exit or take profit trigger.
  2. If the Blue line of the sMAMA.ex4 custom indicator crosses its red line top downward as shown on Fig. 1.0, it is a trigger to exit or take profit accordingly.
  3. If the blue and red line of the Fisher_org_v12.ex4 custom indicator breaks below the 0.00 signal level, it is a trigger to exit or take profit as well.

Sell Entry Rules

Initiate a sell if the following rules or conditions are intact:

  1. If the red downward pointing arrow of the Stochastic_Cross_Alert.ex4 indicator forms above the candlesticks, price is said to be pressured lower i.e. a bearish signal.
  2. If the Blue line of the sMAMA.ex4 custom indicator crosses its red line top downward, it is a trigger to go short on the pair of interest.
  3. If the blue and red line of the Fisher_org_v12.ex4 indicator breaks below the 0.00 signal level, it denotes an alert to go short i.e. a sell signal.

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 footing:

  1. If the Lawn green upward pointing arrow of the Stochastic_Cross_Alert.ex4 indicator forms below the candlesticks, it is a sign of declining sellers i.e. a trigger to exit or take profit.
  2. If the Blue line of the sMAMA.ex4 custom indicator crosses its red line bottom up as shown on Fig. 1.1, it is a trigger to exit or take profit accordingly.
  3. If the blue and red line of the Fisher_org_v12.ex4 custom indicator breaks above the 0.00 signal level, it is a trigger to exit or take profit as well.

Sell Trade Example

Fig. 1.1

Free Download

Download the sMAMA Forex Scalping Strategy

About The Trading Indicators

The Stochastic_Cross_Alert.ex4 is a custom indicator that is derived from the Stochastic and Moving Average MT4 indicator.

The workings of the Stochastic_Cross_Alert.ex4 is such that a buy/sell signal is issued when the arrows on the chart is painted Lawn green (upwards)/red (downward).

The sMAMA.ex4 custom indicator is a trend following that consists of two lines (blue and red) that are attached to the chart.

The Fisher_org_v12.ex4 custom indicator is an oscillator that consists of two lines, a red and a blue line.

The lines oscillate around the 0.00 signal level. Price is bullish or bearish when the lines are aligned above/below the signal level respectively.

Share Now!