This scalping forex strategy takes advantage of micro trend corrections in 5 chart. Entering on one of the smallest possible fractal wave formations means only one thing – ultra tight stop loss. Envelopes forex indicator is used to make sure that the stop loss is tight enough for price to reach a profit before unnecessarily forcing us to exit at loss. This scalping forex strategy takes frequent positions that are entered based on CCI signal confirmed by candle formation and long period CCI trend identification.
Strategy works the best in trending conditions without excessive volatility. As with other scalping strategies it is better to stop trading during high volatility as it increases costs of trading tremendously.

Indicators used in forex strategy
CCI (commodity channel index) period 50 forex trend identification (blue), add additional 0 line to separate downtrend from uptrend.
CCI (commodity channel index) period 4 for entry signal (red)
Envelopes (period 16) for stop loss placement.
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Forex strategy rules
We plot all of the mentioned indicators in 5 min chart of any major currency pair.
SELL:
Slow period CCI (50) blue, trends below zero line.

CCI (4) rises above 100 line. To confirm the signal we wait for first clearly bearish candle. We enter the trade short on new candle open. Stop loss is placed at the blue envelopes line above the entry formation.
Take profit for sell order:
Strategy offers two solution for position exit according to traders discretion.
Start to consider exiting the position once the profit reaches the amount that equals risked loss.
Adding to winner: Move stop losses of all opened position on last signal stop loss. There is no predetermined take profit. Price itself will determine position exit, closing all of opened positions at latest stop loss. Make sure that the new low was reached in the downtrend before entering another position. Do not open multiple orders at same price level !
BUY:
Slow period CCI (50) blue, trends above zero line.
CCI (4) falls below -100 line. To confirm the signal we wait for first clearly bullish candle. We enter the trade long on new candle open. Stop loss is placed at the red envelopes line below the entry formation.
Take profit:
Strategy offers two solution for position exit according to traders discretion.
Start to consider exiting the position once the profit reaches the amount that equals risked loss.
Adding to winner: Move stop losses of all opened position on last signal stop loss. There is no predetermined take profit. Price itself will determine position exit, closing all of opened positions at latest stop loss. Make sure that the new high was reached in the uptrend before entering another position. Do not open multiple orders at same price level !
Notes: In more volatile market conditions liquidate positions immediately in profit. In quiet, trending market, add to the winning position.