This forex strategy goes for a humble profit of 10 pips. Fortunately it manages to get it 97 percent of the time. The rest is reasonable price to pay for doing profitable business.
Indicator used in forex strategy
Fractals forex indicator. Fractals are used to determine local max/min of previous swing. Once drawn fractals offer reliable information on market wave structure. As such they do not offer any additional information except ability to visualize price swing. Thanks to fractals we are also able to test the strategy on historical data. In this forex strategy they will be used to mark the price suitable for pending order placement.
ADX (average directional movement index) 60. ADX is used to determine trend direction and its momentum. Our scalping position will be successful thanks to going with trend and following its momentum.
Strategy is traded in 1 H chart of EURUSD. Avoid volatile conditions with spread over 1 pip.
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.
Forex strategy rules
BUY
Green ADX line trending above red. Blue (main) ADX line is rising and it is above 15 (yellow) line. This will be considered to be an uptrend with growing upwards momentum. We will enter only long trades.
Signal.
Bearish fractal closed. We place pending buy order at the high price marked by fractal. Stop loss is placed on low reached between signal high and our entry,
Take profit: 10pips.
SELL
Green ADX line trending below red. Blue (main) ADX line is rising, and it is above 15 (yellow) line. This will be considered to be a downtrend with growing downwards momentum. We will enter only short trades.
Signal.
Bullish fractal closed. We place pending sell order at the high price marked by fractal. Stop loss is placed on high reached between signal low and our entry,
Take profit: 10pips.
