Magic Dot Forex Scalping Strategy is a strategy that pinpoints price turning points. It is extremely accurate and almost has no lag on the reverse points. This allows us to get into the market when there is still plenty of room for movement, giving us the opportunity to ride the entire move.
Timeframe: any
Currency Pair: any
Trading Session any
How do you trade with the Magic Dot Forex Scalping Strategy
This indicator plots red dots that indicate that the price is being pushed up. This is our buy signal. Blue dots, on the other hand are plotted to indicate that the market has been under pressure.
Want to trade Forex using Magic Dot Scalping strategy with a reliable broker? Open an account with any of the below AtoZ Markets approved forex brokers:
The Buy Setup – Entries, Stop Losses & Exits
- We enter a buy-order when we see a red circle on the chart.
- The stop loss would be a few pips lower than the swing low. The indicator's accuracy means that the swing low is often the signal candle. In this instance, the stop loss would be just a few pips lower than the signal candle.
- As soon as the blued dots appear on the trade, it will be closed manually. This is an indicator that price might already reverse.
- This chart shows how profitable this strategy can be. The yellow lines represent the entry prices. The red lines indicate stop losses. The green lines represent exits that should be profitable.
The Sell Setup – Entries, Stop Losses & Exits
- The blue dots indicate a possible bearish price reversal, as you may have noticed. These were our exit signals for buy setups. These exit signals are the same for buy setups and also serve as entry signals to sell setups.
- Stop loss should be placed just a few pips higher than the signal candle or the swing high.
- When the red dot appears, exits will be made manually.
- Below is the same chart, but with the different sell setups. The yellow lines represent the entry prices. The red lines indicate stop losses. The green lines represent the take-profits.
How to download and install an indicator?
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on “Download Indicator” button located at the bottom of the post.
- Save the file to your computer.
- Extract and move the files into MT4>Indicator folder of the MetaTrader 4 software file directory.
- Restart your MetaTrader platform.
- Navigate to “Indicators.”
- And select “Magic Dot Forex Scalping Strategy” template to apply it on the chart.
Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.
Should you trade using Magic Dot Scalping Strategy on your own at all?
Before you start trading with this strategy, you'll want to read this.
Our in-house trading expert Dr Yury Safronau, PhD in Economic Sciences, gives you daily his best forex, metals, and cryptocurrencies to buy and sell signals right now.
His trading strategies which are based on non-linear dynamic models have achieved more than 65 000 pips of profits since 2015. And right now there are some very strong buy and sell signals across several markets you don't want to miss.
Want to see which ones?
