Moving Average Rainbow Forex Scalping Strategy

October 5, 2016

869

Moving Average Rainbow Forex Scalping Strategy

This is a scalping strategy that follows the trend when trading. This system uses asctrend alert and rainbow indicator. This works on a 5-minute timeframe or higher and is applicable to any currency pairs. Trade only in the direction of the trend.

Metatrader Indicators:

Moving Average Shade 180-360;
Rainbow 06;
Rainbow 07;
Rainbow 08;
Exponential moving average 10 periods, close;
Exponential moving average 12 periods, open;
Asc trend alert;
RCS Fibo.

Rules for entry:

Uptrend: Moving Average Shade 180-360 < Rainbow 08 < Rainbow 07 < Rainbow 06< 10 EMA < 12 EMA

Enter LONG position when asctrend buy arrow appears.

Downtrend: Trend Down= Moving Average Shade 180-360 > Rainbow 08 > Rainbow 07 > Rainbow 06 > 10 EMA > 12 EMA

Enter SHORT position when asctrend sell arrow appears.

The use of MA Shade 180-360 is optional. But it can help you identify false signals.

Exit Position:

Place initial stop loss on the previous swing.
take profit on the fibo level or profit target ratio 1.5 stop loss.

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