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.
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
- Set SL below the lower Bollinger band
CVN Signal Scalping Strategy: Sell Conditions
- The price is rejected by the higher Bollinger band
- RSI value drops below the 75 level
- The stochastic Oscillator starts falling from 80 alongside %K moving below %D
- Place the SL limit above the higher Bollinger band