Scalping forex strategy that correctly assumes, that strong, trend following candle in 4H chart, usually passes some momentum to the next candle. This move, can be caught with pending order awaiting market continuation at closed candle high/low. We can't expect the move to continue for very long. However, it can be easily exploited with scalping.

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To improve entry accuracy trend and range filter (CCI) is used. The signal must occur on candle that has predefined range. This ensures sufficient momentum for our pending order.
Forex strategy was tested for profitability on historical data since 2003. Best results were achieved in 4H and 1H charts (test). Forex strategy is brought to you together with fully capable expert advisor. Use it to test various setting combination of the system to adapt it for different currency pairs and time frames.
Used tools and indicators
Commodity channel index (CCI 200) High calculation period is used together with buy above / sell below zone. The zone in the middle becomes no trade zone, typical with indecisive market momentum signalizing market range. Range will be avoided in this momentum based trading system.
Signal candle (60 – 150 pips). Candle with defined range. It is closing in the direction of CCI defined trend. Pending order is placed at its low (sell) or at its high (buy).
Stop loss / trailing stop (extra deviation 70 pips). Placed at opposing end of signal candle. Extra deviation can be applied to cover some unexpected moves. It will be adjusted with each following candle in the direction of profitable trade.
Stay valid (2 days): Each untriggered pending order will remain valid for defined number of days.
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Forex strategy rules
SELL

CCI trending below sell below zone (-25 in test). Downtrend.
We will be looking for bearish candle with defined range. Once it closes, we place pending sell stop order at its low.
Untriggered pending order will remain valid for 2 days.
Trailing stop loss is placed at the high of the signal candle + extra deviation.
Take profit: 30 pips
BUY

CCI trending above buy above zone (25 in test). Uptrend.
We will be looking for bullish candle with defined range. Once it closes, we place pending buy stop order at its high.
Untriggered pending order will remain valid for 2 days.
Trailing stop loss is placed at the low of the signal candle - extra deviation.
Take profit: 30 pips
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Disclaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer. TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.