Currency traders usually scalp with substantially high volumes which is why so many times, we find a lot of traders who do not follow the 2% risk management rule.
They rather trade very high volumes during their favorite forex scalping sessions.
The Trend Scalper MT4 Forex strategy works great on the lower timeframes (M1, M5, M15) and for any currency pair with low spread. Some traders reported over 73% wins with this scalper strategy.
For those who’re just getting started with trading in the global financial market, a demo account is a reasonable start, so you can test out our Trend Scalper MT4 Forex strategy with virtual money, before migrating to a real account.
After setting up the included indicators for the Trend Scalper MT4 Forex strategy, your chart should resemble those in the cited examples. Let’s get started!
Chart Setup
MetaTrader4 Indicators: choppiness-index.ex4 (Default Setting), forex-sunrise-indicator.ex4 (Colors Width Modified; #0=2, #1=2), elliot-wave-oscillator.ex4 (Default Setting)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes
Recommended Trading Sessions: London, New York
Currency Pairs: Major and minor pairs with low spreads
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Download the Trend Scalper MT4 Forex Strategy
Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the yellow line of the choppiness-index Metatrader 4 forex indicator falls below the 50.00 horizontal level as shown on Fig. 1.0, the market is said to be directional. At this point traders should look at other indicators for confirmation on going bullish/bearish.
- If the blue line of the forex-sunrise-indicator stays somewhat below the candlesticks as seen on Fig. 1.0 with “rule 1” still in place, it is a trigger to go long on the designated currency pair.
- If the dark khaki histograms of the elliot-wave-oscillator gets stacked above the 0.00 horizontal level (see Fig. 1.0), price is said to be pressured higher, thus a trigger to buy the currency pair of focus.
Stop Loss for Buy Entry: Place stop loss below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If the yellow line of the choppiness-index custom indicator breaksabove the 50.00 signal level (refer to Fig. 1.0), it is pointing to a choppy market, therefore we recommend an exit or take profit stance on open position(s).
- If the forex-sunrise-indicator popsup a deep pink line above the candlesticks while a bullish trend is ongoing, traders should be cautious enough to exit or take profit at this point.
- If the dark khaki histograms of the elliot-wave-oscillator forex indicator realigns to pop up below the 0.00 level during the course of a bullish signal, bulls power is said to be fading i.e. a trigger to exit or take profit at once.
Sell Entry Rules
Go short if the following setups gets displayed rightly on the activity chart:
- If the yellow line of the choppiness-index forex indicator dips below the 50.00 horizontal level as illustrated on Fig. 1.1, the market is said to be smooth. At this point investors should be on the lookout for buy/sell confirmation from other indicators.
- If the deep pink line of the forex-sunrise-indicator aligns fairly above the candlesticks as depicted on Fig. 1.1 with “rule 1” still in place, it is a trigger to sell the selected forex pair.
- If the dark khaki histograms of the elliot-wave-oscillator piles up below the 0.00 horizontal level as exemplified on Fig. 1.1, price is said to be pushed lower, thus a trigger to sell the currency pair 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 takes center stage:
- If the yellow line of the choppiness-index custom indicator break above the 50.00 signal level, it is pointing to a choppy market, therefore an exit or take profit stance is recommended.
- If the forex-sunrise-indicator pops up a blue line below the candlesticks during a bearish trend, traders should be wary of an imminent bullish reversal, as such an exit or take profit will suffice.
- If the dark khaki histograms of the elliot-wave-oscillator custom indicator realigns to form above the 0.00 level while a bearish trend is running, bears power is said to be diminishing i.e. a trigger to exit or take profit forthwith.
Sell Trade Example
Fig. 1.1
Free Download
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About The Trading Indicators
The choppiness-index is a non-directional forex indicator that reflects whether the market is choppy (trades sideways) or smooth (trending).
Higher values means the market is choppy, while lower values typifies directional movement (trending).
The indicator marks above 61.8 as choppy and below 38.2 as directional, but our strategy marks above/below the 50 level as being choppy/directional respectively.
The forex_sunrise_indicator is an adaptable technical study that is based on the moving average, with built in buy/sell alert triggers that are derived from calculations hinged around support and resistance.
The elliot-wave-oscillator custom indicator is an oscillator that shows the difference of a 35- and 5- period simple moving average (SMA) of prices represented as histograms that are placed above and below a zero level.