Bollinger bands, RSI, ADX Forex Scalping Strategy For MT4
The Bollinger bands, RSI, ADX Forex Scalping Strategy For MT4 is a dynamic system to trade any time frame. The Bollinger band lets you find support and resistance. The RSI is used to find the overbought and oversold reading of the market.
The ADX is used to find the momentum of the trend and potential reversal point. By combining these three unique factors, the traders can scalp the key support or the supply zone with great ease. Before you get into this system, try to not trade the 1 minute and 5-minute time frame as the noise is too complex to filter.
The BB or Bolinger band is the first factor that you should monitor. The upper barrier of the BB is your resistance and the lower barrier will be acting as the support. After the price starts to struggle with one of these barriers, it means the market is most likely to reverse. Go to the RSI indicator and extract the data. Overbought RSI and testing of the supply level of the BB is a strong indication, the sellers are starting to kick in. Once you find a strong rejection of the upper BB, take look at the ADX momentum. If the momentum shows higher reading, execute the short trade.
The long trades are taken at the lower BB. You have to wait for the bullish rejection. Once this condition is fully filed, take look at the RSI and see if it is in the oversold state. If the signal is green, go to the ADX window and analyze the momentum. The momentum must be high that means the ADX curve must be heading north. If all these conditions are filled, execute your long trade right at that instant.
Stops are determined by using demand and supply. The pro traders often set the stop with the candles pattern. Take profit levels are set to the closed support or resistance point. Though it’s a premium trading strategy, be careful about the risk to reward ratio.
Download the complete system description and the files here:
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
