The King Forex MT4 Scalping Strategy is a trend breakout trading system designed for intraday forex scalping. It combines several indicators to identify trend direction, breakout levels, and precise entry and exit points. This system is optimized for trading on a 15-minute timeframe and is best applied to specific currency pairs, including GBP/USD (GU), GBP/JPY (GJ), EUR/USD (EU), AUD/USD (AU), and USD/CHF (UCHF).
Key Components of the Strategy
This strategy utilizes a combination of indicators to confirm trade setups:
- Heiken Ashi Candles: These are used to smooth out market noise and identify trend direction.
- 2 MA Crossover: Identifies short-term momentum and trend shifts.
- King Trend Signal: An indicator that provides buy/sell arrows when a trend shift is detected.
- 5 Moving Average Smoothed High/Low (SMA): This forms a channel known as the SMA 5 Tunnel, which indicates the current trend’s direction.
- King’s Cage Indicator: The primary indicator used to identify breakout zones.
- QQE Alert: Provides an alert based on the crossovers of values to confirm momentum.
- King’s Trend Detector: Detects the primary trend direction.
- RCS Fibo Indicator: Identifies Fibonacci levels for profit targets.
How to Set Up the Indicators For Scalping Strategy
- Heiken Ashi: Add this to the chart to smooth out candlestick patterns and easily identify uptrends (green) and downtrends (red).
- 2 MA Crossover: Add the 2 MA crossover to identify buy/sell arrows based on short-term momentum changes.
- King Trend Signal: Look for the arrows that signal a potential buy or sell.
- SMA 5 Tunnel: Plot two smoothed moving averages to create the channel for trend direction.
- King’s Cage Indicator: This serves as the main filter for breakouts and should be configured to detect price breakouts.
- QQE Alert: Set this to alert when the values cross to confirm momentum.
- King’s Trend Detector: Helps verify whether the overall market is trending up or down.
- RCS Fibo Indicator: Used to set profit targets based on Fibonacci levels.
Long Entry Setup (Buy)
- Breakout Confirmation: Ensure the price breaks upward through the breakout filter zone established by the King’s Cage Indicator.
- Trend Direction: The King’s Trend Detector must confirm an uptrend.
- Entry Arrow: Wait for a buy arrow (generated by the 2 MA Crossover or King’s Trend Signal).
- Heiken Ashi Confirmation: The Heiken Ashi bar must turn green and close above the SMA 5 Tunnel.
- SMA Tunnel Direction: The SMA 5 Tunnel should be trending up.
- QQE Alert: QQE alert value 1 should cross QQE alert value 3 from below, confirming upward momentum.
Once all conditions are met, place a buy order.
Short Entry Setup (Sell)
- Breakout Confirmation: Ensure the price breaks downward through the breakout filter zone established by the King’s Cage Indicator.
- Trend Direction: The King’s Trend Detector must confirm a downtrend.
- Entry Arrow: Wait for a sell arrow (generated by the 2 MA Crossover or King’s Trend Signal).
- Heiken Ashi Confirmation: The Heiken Ashi bar must turn red and close below the SMA 5 Tunnel.
- SMA Tunnel Direction: The SMA 5 Tunnel should be trending down.
- QQE Alert: QQE alert value 1 should cross QQE alert value 3 from above, confirming downward momentum.
Once all conditions are met, place a sell order.
Exit Strategy Of Scalping Strategy
- Stop Loss: Place an initial stop loss of 15-20 pips.
- Take Profit: Set the take profit at an RCS Fibo Level or aim for a target of 12-15 pips to maintain a 1:1 risk-to-reward ratio.
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Example of a Long Trade Setup
Let’s consider the GBP/USD on a 15-minute chart. The price breaks above the King’s Cage breakout filter zone, signaling a potential bullish breakout. The King’s Trend Detector confirms the uptrend, and a buy arrow appears. The Heiken Ashi bar turns green and closes above the SMA 5 Tunnel, also trending up. The QQE alert shows a cross from below, confirming the bullish momentum. All conditions are met, so you place a buy trade with a 15-pip stop loss and a 15-pip take profit target.
Example of a Short Trade Setup
Now, consider the USD/CHF on the 15-minute chart. The price breaks below the King’s Cage breakout filter zone, signaling a potential bearish breakout. The King’s Trend Detector confirms the downtrend, and a sell arrow appears. The Heiken Ashi bar turns red and closes below the SMA 5 Tunnel, trending down. The QQE alert shows a cross from above, confirming the bearish momentum. All conditions are met, so you place a sell trade with a 20-pip stop loss and a 15-pip take profit target.
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Conclusion
The King Forex MT4 Scalping Strategy is an effective trend breakout scalping system that combines multiple indicators for accurate entry and exit signals. It’s optimized for intraday trading on a 15-minute timeframe and is suitable for pairs like GBP/USD, GBP/JPY, EUR/USD, AUD/USD, and USD/CHF. With clear buy and sell conditions, this MT4 scalping strategy is ideal for traders looking to capitalize on short-term market movements.
By following the rules strictly and maintaining proper risk management, you can effectively utilize this strategy to achieve consistent profits. Always test the MT4 Scalping strategy on a demo account before using it on a live account, and adjust settings based on market conditions for optimal performance.
