Escape – scalping FOREX strategy

Substantial momentum is necessary for a price to break outside of bollinger bands channel. Once the price moves outside of channel boundaries, it usually moves very fast and movement doesn't last very long. This creates a perfect conditions for aggressive scalping. For trader to achieve the best real time entry simple candle formation signal is used. Candle formation will provide us with real time signal confirming the price movement as it is based on price overcoming the correction that tends to be very narrow.

 

Strategy is traded in 5 min data window. Good ECN broker is therefore required to provide you with high quality data feed and reliable execution.

 

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.

 

Used forex indicators:

  • Bollinger bands (60 with deviation 0,1). Price escaping bollinger bands channel must be moving rapidly to do so. This often marks the beginning or new trend.

  • Candle signal. One candle in the direction of price escape overcoming two flat correction candles.

 

Forex strategy rules:

SELL:

 

Price closing below bottom BB line.

Signal formation: Two flat bullish candles followed by one tall bearish candle, closing below the low of first bullish candle. We enter short on bearish candle close.

Stop loss: Place it one pip above the signal formation high.

Take profit: Move stop loss to break even after profit that equals formation size is reached. Full take profit – price closing inside the BB tunnel.

 

BUY:

 

Price closing above upper BB line.

Signal formation: 3 candle formation. Two flat bearish candles followed by one tall bullish candle, closing above the high of first bearish candle. We enter long on bullish candle close.

Stop loss: Place it one pip below the signal formation low.

Take profit: Move stop loss to break even after profit that equals formation size is reached. Full take profit – price closing inside the BB tunnel.

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