Entry signal for this scalping forex strategy is as simple and as effective as it gets. If you love frequent trading, you will also love this forex strategy. It uses alligator forex indicator to identify the trend. In trend, candles moving in its direction tend to be wider. This tall candle may be interpreted as growing market momentum in the direction of trend. In this forex strategy we will take advantage of this trading setup using equal stop and profit targets.
Used forex indicators
Alligator (26,16,10)
Forex strategy rules
We plot alligator forex indicator in 15 min chart of any major currency pair.
SELL:
Alligator lines are untangled. Lined according to the downtrend, from top to bottom: blue, red, green
Signal: Strong bearish candle.
Body of signal candle is larger than a whole range of any of previous 5 candles.
We enter immediately on signal candle close.
Stop loss is placed one pip above signal candle high.
Take profit: We exit the trade on first bearish candle closing below our entry point (in profit).
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BUY:
Alligator lines are untangled. Lined according to the uptrend, from top to bottom: green, red, blue
Signal: Strong bullish candle.
Body of signal candle is larger than a whole range of any of previous 5 candles.
We enter immediately on signal candle close.
Stop loss is placed one pip below signal candle low.
Take profit: We exit the trade on first bullish candle closing above our entry point (in profit).
Notes: This forex strategy goes for single candle of profit or loss. Profitable trades may be up to 3x times more frequent than losing ones.
