Introduction: In this tutorial, we will explore a winning strategy specifically designed for MetaTrader 4 (MT4). Please note that this strategy is not compatible with MetaTrader 5 (MT5) or the Deriv platform. Before executing any trades, it is crucial to check Forex Factory or a news aggregator for any news related to the currency pairs you intend to trade. This step will help you stay informed and avoid trading pairs affected by imminent or ongoing news events. With that said, let’s delve into today’s tutorial, which focuses on using MT4 indicators for scalping on the one-minute time frame.
The Strategy: To implement this strategy, I have combined three indicators that work harmoniously to increase your chances of success. The first indicator we’ll examine is the MA Period indicator, which displays the moving averages on different time frames, ranging from monthly to one-minute. When most of these time frames display a blue color, it indicates an upward trend. In such cases, we will only consider scalping in the direction of this trend. Conversely, if the majority of the time frames are not displaying a predominantly blue color, we will refrain from taking any trades against the prevailing trend.
The second indicator to consider is the TFF indicator, located in the indicator window. Combining this indicator with the MA Period indicator enhances the effectiveness of the strategy. Now, let’s explore how to use these indicators together for profitable scalping.
Using the Strategy: When applying this strategy, look for buy opportunities when the MA Period indicator displays consistent blue colors. Additionally, ensure that the green color is above the orange color, indicating a buy signal. Execute your trades based on these criteria. Here are a few examples:
Example 1: In this case, we have a buy signal as the green color is above the orange color, signifying an upward trend. You can take multiple buy trades when all the indicators are in agreement. Aim for a quick profit of five to ten pips.
Example 2: Here is another example where the MA Period indicator predominantly shows blue colors. This indicates a good buy signal, which aligns with the other indicators. Consider executing a buy trade, and remember to ensure that the lime color is above or below 0.8, depending on your risk tolerance. If you prefer a conservative approach, wait for the lime color to be above 0.8 for a buy trade or below -0.8 for a sell trade. This precautionary measure helps minimize potential losses.
Example 3: While the strategy is primarily geared towards buy signals, it can also be used for sell signals. However, it is essential to determine whether the signal is red or blue. If it remains blue, you should only consider taking buy trade.
Conclusion: By combining the MA Period indicator and the TFF indicator, you can effectively scalp the market on the one-minute time frame. These indicators provide insights into the overall market trend and help you make informed trading decisions. Remember to manage your risk appropriately and adhere to sound money management principles. You can find all the indicators used in this strategy below. Keep in mind that this strategy is most suitable for the one-minute time frame, but it can be adapted for other time frames as well.
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Disclaimer: It is crucial to follow money management principles to protect your capital. While this strategy enhances your trading potential, success is not guaranteed. Always exercise caution and make informed decisions based on your own analysis.
Download indicators here (click to download)
Download template here(click to download)
