xSignals and MetaTrader: profit on fast Forex scalping
Most Forex brokers use the MetaTrader terminal. Hundreds of automated advisers, additional indicators and training materials have been developed for it. Let's see a simple MT5 and MT4 forex strategy for scalping on standard technical indicators with confirmation from xSignals.
Timeframe: Any in the range M1-M5. In our case, M1 is used, but with an increasing period of analysis, the accuracy of the signal increases.
Trading asset: Any currency pairs. The main requirement is a fixed (2-3 points) spread and no hidden fees.
Time forex trading strategies: All Forex trading sessions.
Recommended Take Profit: 30-40 points
Install on the chart:
Bollinger Bands.The horizontal direction of indicator lines confirms the presence of a flat, the breakdown of the lines will signal its end. If the range is wide enough, you can open a rollback position from the borders. This method in trading Forex strategies only recommended for experienced traders!
MACD. The indicator gives the first confirmation of the breakout of the Bollinger lines.
Stochastic − the oscillator will assess the current balance between buyers and sellers: the predictor above level 80 − the end of the uptrend or overbought, below 20 − the end of the downtrend or oversold. The oscillator must be in any metatrader 4 best strategy.
MetaTrader strategy signals:
BUY position. The price is above the average Bollinger or makes a reversal from the lower border. The second confirmation from MACD is above the zero level. Stochastic is going up or out of the oversold zone.
SELL position. Opposite conditions: the price is below the average Bollinger or makes a reversal from the upper border. MACD is below zero. Stochastic is going down or out of the overbought zone.
The signals are simple, but beginners should definitely wait for trend confirmation or price reversal from MACD and Stochastic.
Example trading signals forex
All the conditions of the strategy for opening a SELL position are met. The price has passed the middle line of the Bollinger Bands, MACD is below zero, and Stochastic is in the overbought zone. There is a strong Power on signals.
Downtrend goes long enough, there will be a reversal. But, Stochastic has just entered the overbought zone, there is a possibility that the trend will continue on the next 2-4 candles. The main thing is to constantly control the profit/loss, be ready to quickly close the position. Even if there is a loss, we close the position when the Stochastic exits from overbought!
Watch two more scalping forex trading signals in the video.
Recommendations about use …
Set Take Profit and Stop Loss orders when scalping? If scalping is on average 5-6 minutes and you have experience of working quickly in MetaTrader, they will not be superfluous. In Forex trading strategies for beginners, it may be possible to quickly set TP / SL with given parameters. We use manual opening, then we adjust the values of the levels.
Indicator settings allow you to use the methodology as day trading strategies. We look at Take Profit/Stop Loss values by volatility. Reduce lot size and leverage.
All metatrader 4 strategies can be used in MetaTrader 5. There are no technical restrictions or additional settings.
Scalping continues to be the most optimal Forex strategy for making quick money. On the current Forex, the "length" of medium and long trends is getting smaller. The longer the trade is open, the higher the probability of a reversal with a loss. It is better to work with small but frequent positions on major currency pairs.