Parabolic Sar and CCI Forex Scalping Strategy For MT4
The Parabolic Sar and CCI Forex Scalping Strategy For MT4 works best when EURUSD, GBPUSD and AUDUSD pair is traded. The reason for which these 3 pairs have a high rate is the trending nature. As the scalping method is based on a momentum analysis process with Parabolic SAR, 50 SMA, 21 SMA, and CCI indicators, it is important, you follow the instructions very precisely.
50 and 21 SMA is considered for the cross over-identification. 21 SMA pushing below the 50 SMA is a sign of bearish momentum. Wait for the three parabolic SAR Yellow dot above the candlestick. After that, focus on the CCI (45) reading. If the CCI line is falling below 100 lines from the top territory, you can take your short. The standard stop loss is 13 pips for using the minute 30 chart. And if you use the hourly chart, stop loss 20 pips. Take profit is 25 pips and 35 pips for M30 and hourly chart respectively.
The bullish cross is identified when the 21 SMA or the fast-moving average goes above the 50 SMA. Three yellow color parabolic dot will appear below the bars or the candlestick. The signal line in the CCI (45) will go above the -100 level. Take your long trade with 13 pips to stop if the analysis is done in the minute chart. Take profit is 25 pips for the trade. However, when the analysis is done in the hourly chart, stop is 20 pips and take profit of 35 pips.
The traders need to be carefully select the time frame as the profit potential greatly depends on it. If the volatility is very high, the required time frame is H1 or H4. But when the market activity is low compared to regular price movement, the required time chart is M30. The advanced traders can use this scalping method in the M15 chart also but in that case, the trades must be in favor of trend all time. The SL with be 10 pips and TP is 30 pips. The maximum risk exposure for this highly efficient trading model is 2% of your capital.
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