Scalp Momentum MT4 Forex Trading Strategy


The Scalp MT4 Forex Trading Strategy is now available for download on AtoZ Markets indicators gallery.

This strategy relies on trading around a momentum candles. We prepare ourselves for any price action that may follow by trading around a momentum candle.

What size candle should we be looking for? It is difficult to determine the size of a candle because markets and currency pairs have different ranges. A momentum candle could be 10 pips in length and full-bodied on a market where the price moves 1.5 to 3.0 pips per minute.

As long as the candles are designated as momentum candles, the momentum move can be as long as a few candles, or as long as two, three, or five candles.

We will be watching for the price of retracement for a few candles after such a thrust using momentum candles. It should not exceed 30 candles. We wait for the price rollback to signal a possible resumption. We could then set up our trade by using stop orders.

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Timeframe 1 minute or 5 minutes chart

Currency Couple: Major Pairs and Some Volatile Crosses

Trade Session: when the market for the currency is open

How do you trade with Scalp Momentum Forex Trading Strategy MT4?

Trade Setup (Long)

Entry:

  • A bullish momentum candle/thrust should be approximately 3 to 5 times larger than the preceding candles
  • With small bearish candles, wait for the price to drop
  • The thrust should not be retraced more than 30%.
  • Watch for signs that the trend is resuming in price
  • Once small bullish candles start to appear, place a buy order for entry just a few pip above the swing high

Stop Loss

  • Place the stop loss a few pips lower than the swing high

Exit

If price continues to push for momentum, you should trail the stop loss approximately the same distance that the initial stop loss.

Short Sale (Short) Trade Setup

Entry:

  • Bearish momentum candles or thrusts should be approximately 3 to 5 times larger than the previous candles
  • With small bullish candles, wait for the price to retrace
  • The thrust should not be retraced more than 30%.
  • Watch for signs that the trend is resuming in price
  • Once small bearish candles start to appear, place a sell stop order just a few pip below the swing low

Stop Loss

  • Place the stop loss just a few points above the swing low

Exit

  • If price gives off another strong thrust on the momentum resumption, you should trail the stop loss approximately the same distance that the initial stop loss.

How do I download and install an indicator?

These steps are required to install the indicator onto your MT4 platform.

  1. At the bottom of your screen, click on the " download indicator" button.
  2. Save the file to your hard drive.
  3. Move the files to the MT4>Indicator directory in the MetaTrader 4 software program file directory.
  4. Start your Metatrader platform.
  5. Navigate to " Indicators".
  6. To apply the template "Scalp Momentum Forex Trading Strategy" to the chart, click here

This indicator was created by James, Australia. AtoZ Markets has no copyrights to this trading tool.

  1. Aadi Shahzad Aadi Shahzad says:

    Awesome

    Reply

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