The CVN Signal Scalping Strategy represents a basic MT4 trend-following trading system that combines Bollinger Bands, Relative Strength Index (RSI), and Stochastic Oscillator.
With this strategy, you’ll be able to spot trend reversals, current market bias, and overall momentum conditions of the price.
Technically, it is a beginner-friendly trading strategy that suits forex, stocks, and cryptos in multiple timeframe charts.
Once you install the CVN Signal Scalping Strategy in your MetaTrader 4 platform, you’ll be able to see the dynamic support/resistance levels using Bollinger bands. At the same time, you can verify possible buy-sell signals using the RSI and Stochastic oscillator.
CVN Signal Scalping Strategy Explanation
While applying the CVN Signal Scalping Strategy in live trading, we’ll use the lower and higher Bollinger bands as dynamic support/resistance. These levels will guide you through potential trade entry-exit zones.
For instance, the price rejecting to exceed the higher Bollinger band indicates the market is on an excessive supply and ready to rebound for a bearish reversal. A bearish price-action signal at the higher band at this point can be an ideal option for activating a sell entry.
The developer of this strategy has added RSI and Stochastic Oscillator to verify the validity of the trading setups. For example, you’re looking forward to placing a buy entry following the price rejection at the lower Bollinger band. At his point, if the RSI rebounds from the oversold zone (25) and the Stochastics jumps up from the 20 levels, then it can be a valid buy setup to move on.
CVN Signal Scalping Strategy: Buy Conditions
The price bounces upwards from the lower Bollinger band
RSI value exceeds the 25 level
Stochastic Oscillator rebounds from 20 with %K moving above %D
I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.
Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.
