Zigzag And Bollinger Band Forex Scalping Strategy For MT4
The Zigzag And Bollinger Band Forex Scalping Strategy For MT4 is one of the most powerful scalping trading system used by the top tier traders. The strategy is so popular because it can be used in 1 minute, 5 minute and 15-minute time frame. Most of the institutional traders love to use the 5 minute time frame the trade setups are adequate.
Four different kinds of the indicator are used in this scalping method. The zigzag and the Bollinger band works as the main indicator as it shows the exact price to buy or sell the asset. The CCI and stochastic indicators are used to find the false signals generated in this system. Usually, the period is set to 2 for the zigzag indicator and the Bollinger band period is set to 20,3 and 20,2. This means you have to use two Bollinger bands as it will give you a specific zone instead of a price point to execute the trades.
The execution of the trade is fairly simple. You will short trading opportunity when the upper band is tested. If the price rejects the upper band in the designated time frame, you have to look at the reading of the CCI and Stochastic. The stochastic value must be above 80 and the CCI reading must be around 90 marks. For the long trade setups, the price will hit the two Bollinger band support zone. As soon as the price rejects the Bollinger band support, you have to look for the confirmation signals. The stochastic reading must be at the 20 levels and the CCI reading will -90 line.
Stop loss and take profit level is very easy to determine in this system. Usually, the stops will be placed by using the rejection of the candlestick. But make sure the stops are well beyond the support or the resistance zone. The take profit is usually set to the mid bands. But be careful about the risk to reward ratio. If the stop 10 pips, the take profit must be at least 20 pips.
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