Trendbound envelopes - FOREX scalping strategy

Forex scalping strategy that is able to filter out unsuitable market conditions and pick only most stable of trends, to enter our position. It intelligently combines rarely used forex indicator – Envelopes, with smoothed moving average as trend identification tools. Popular forex oscillator RSI (relative strength index) is used as position entry signal.

 

 All buy, all profitable position. First bad entry is filtered out by envelopes.

 

FOREX Indicators:

Envelopes ( 21)  applied on close , with 0,20 percent deviation.

Moving average (smoothed) period 200.

RSI (Relative strength index) 4

All indicators applied on 5 min time frame. On any currency pair.

 

Forex strategy rules.

For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.

 

Buy:

Both envelopes bands are trending above SMA 200. RSI falls under 30. To time the entry properly, we wait for next bullish candle to close, even if it means that RSI returns above 30. We enter the position once new candle opens.

Stop loss is placed at SMA level.

Take profit: Price touches upper envelopes band (blue - agressive). RSI reaches value above 70 (conservative)

 

Sell:

Both envelopes bands are trending under SMA 200. RSI rides above 70. To time the entry properly, we wait for next bearish candle to close, even if it means that RSI returns back under 70. We enter the position once new candle opens.

Stop loss is placed at SMA level.

Take profit: Price touches lower envelopes band (red).

RSI reaches value below 30.

 

Range bound condition filter.

 

This is a trend following forex scalping strategy. To avoid range bound conditions with high volatility, we trade only when both envelopes bands are clearly above/under the SMA 200 line.

SMA 200 between envelope bands clearly indicates ranging – no trade market.

 

 

 

Please reload

ABOUT US

THEFOREXKINGS

“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

—  Marian, Proprietor of TheForexkings.com