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Forex trading system "10 Pips Per Day"
Forex Scalping Strategy
It is common to see the price bounce off the Bollinger band when the price closes outside the upper or lower Bollinger band line. Using this fact, we can confirm with the stochastic to look for overbought and oversold zone. The risk to reward ratio on this strategy is not but has a high accuracy rate so it is advisable to trade at own discretion.
Details
Categories: Technical, Scalping
Timeframes: 5 Minutes
Currency pairs: EURUSD, GBPUSD, USDCHF, USDJPY
Trading sessions: ANY
Indicators used
- Bollinger Bands
Period: 20
Deviations: 2
Shift: 0
Apply to: Close
- Stochastic
%K Period: 5
%D Period: 3
Slowing: 3
Price Field: Low/High
MA method: Simple
Entry rules
We open a buy trade when the stochastic is below 20, the bid price close outside the lower Bollinger band indicator line, and the previous candle stick is bullish.
Vice versa, we open a sell trade when the stochastic is above 80, the bid price close outside the upper Bollinger band indicator line, and the previous candle stick is bearish as shown in the following picture.
Trade management
Take Profit = 10 pips
Stop Loss = 20 pips
Exit rules
Wait until Stop Loss or Take Profit level will be hit as shown in the following picture.
Advantages
There are many opportunities for this strategy and it has a high accuracy rate.
Disadvantages
The risk to reward ratio on this strategy is not very good, because You risk 20 pips for 10 pips profit.
Metatrader 4 chart template files
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