Megatrend Forex Scalping Strategy For MT4
The Megatrend Forex Scalping Strategy For MT4 is a simple but highly effective trading system which works well when traders deploy this strategy in line with the underlying trend direction.The underlying trend direction is easily identified with the use of the Hull Moving average indicator.
This indicator has proven to be a highly effective indicator in the trading markets due to its smoothing capabilities which in turn mitigates most false signals. This scalping technique basically makes use of a profitable and safe trading philosophy which is to make the trend your friend. However, being a scalping technique it profits traders much to pursue this philosophy because they do not over-trade the underlying trend because market reversals become more likely as time progresses.
As mentioned there is the Megatrend indicator, which is basically the Hull Moving Average indicator - which has a period setting of fifty. Then there is the Fip line with default settings. the Zig Zag pointer indicator is also included in this indicator and it also has default settings. Then there is the Pivot indicator.
The rules which apply to the buy entries and sell entries are not complex at all. The trader, for a buy entry, needs to wait for the FIP_LINE to show an uptrend. then they should turn to the Megatrend indicator to see if there is a resulting color change from red to blue which confirms that the market is indeed trading in an upward direction. The trader should only open a buy trade when the first bar open takes is above the pivot points level. Then for sell entries, traders may only enter a sell trade when the FIP_LINE is showing a downtrend, whilst the Megatrend has to result in a color change from blue to red which means that the market is going in a downward direction.
Once these two above conditions have been met, then the trader just needs to wait for the first candlestick to open below the pivot level in in order for them to eventually open a sell trade. TP EURUSD is 8 PIPS, for AUDUSD and GBPUSD it is 6-7 and 9-10 pips respectively.
Download the complete system description and the files here: