Histogram Divergence Forex Scalping Strategy

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Histogram Divergence Forex Scalping Strategy

This is a scalping strategy but it also works for higher timeframes. This system uses an EMA or exponential moving average that helps to identify trend but the main indicator used is the histogram divergence. This works on a 15-minute timeframe or higher and is applicable to any currency.

Metatrader Indicators:

  • Histogram Divergence (Trend Indicator)
  • Five Envelopes;
  • Exponential moving average 89 (89 EMA indicator).

Sell Entry:

  • Histogram Divergence indicator is less than 0.
  • The price has to close below the black EMA line.
  • The candle that is closing below is called the setup candle.
  • The candle must close above the dotted red line.
  • The signal is not valid if the candle is closing below the white line and the white line is also closing the dotted red line.
  • Enter trade 1 pip below the low of the setup candle.
  • place stop loss 5 pips above the EMA 20.
  • Take profit at the envelope dotted red 2 or dotted black.
  • Target profit also depends on the currency pairs.

Buy Entry:

  • Histogram Divergence indicator is greater than 0.
  • The price has to close above the black EMA line.
  • The candle that is closing above is called the setup candle.
  • The candle must close below the dotted red line.

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