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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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