RSI And SFX MCL Forex Scalping Strategy
This is a scalping strategy that uses stochastic indicator as a filter. This works on a 5-minute or higher timeframe. This is useful on major currency pairs. take note that this strategy is not for beginners.
Metatrader Indicators:
- SFX MCL indicator;
- RSI Indicator (5-period) with two moving averages 11 and 34 periods;
- Stochastic Indicator (14,3,3)-low-High;
- Pivot points Levels;
- Trend Reversal indicator;
Long Entry:
- SFX MCL indicator line green must be greater than line blue.
- RSI and moving average 17 and 34 must cross in an upward direction.
- Trend Reversal indicator bars must be aqua;.
- Stochastic indicator crosses upward but is not in the oversold area.
- Avoid entering a long trade if the stochastic is in oversold area and the RSI is greater than 80.
Short Entry:
- SFX MCL indicator line green must be less than line blue.
- RSI indicator and moving average 17 and 34 must cross in a downward direction.
- Trend Reversal indicator bars must be red.
- Stochastic indicator crosses downward but is not in the overbought area.
- Avoid entering a short trade if the stochastic is in overbought area and the RSI is less than 20.
Exit Position:
- Exit when SFX MCL reverse.
- Profit target should be 5-8 pips or it depends on the currency pairs.
- Exit at the pivot points levels.
- Place stop loss at 10 pips below or above the entry bar.
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