Bias Color Trading Scalping Strategy uses the bias indicator to determine market sentiment: red for bearish and blue for bullish. The indicator does not repaint or redraw, but its calculation may adjust during the day. Traders should follow the rules with discipline and manage risk properly.

Setup

• Timeframe: M5 or M15 (M15 recommended for fewer but more reliable signals).

  Instruments: Focus on 1–4 favorite trading instruments.

  Additional tools: Entry (arrow) indicator or your preferred entry/exit signals.

Buy Rules

1. Bias indicator turns blue.

2. Confirm entry with an arrow or your own indicator.

3. Enter a BUY position.

Sell Rules

1. Bias indicator turns red.

2. Confirm entry with an arrow or your own indicator.

3. Enter a SELL position.

Stop Loss

• BUY trades: Place stop loss below last swing low, near support, or at a round number.

  SELL trades: Place stop loss above last swing high, near resistance, or at a round number.

Exit Strategy

• Use realistic risk-to-reward ratios (e.g., 1:1.2 or 1:4).

  Consider partial exits to secure profits.

  If bias changes color during the trade, tighten stop loss or close early.

Conclusions

This strategy is simple yet effective. By combining bias confirmation, proper stop placement, and disciplined exits, traders can navigate changing market conditions while managing risk efficiently. The FXTR template provides a structured way to track tips, observations, and adjustments for daily trading.

Submit by Joy22 12/04/2012

Time Frame 5min

Currency Pairs :

Volatile: GBPJPY, GBPCHF, EURJPY

Majors: EURUSD, AUDUSD and GBP/USD

Short Entry

Stochastic (5,3,3)<50 < Stochastic (18, 5,3).

2 LWMA H/L below middle band of the bollinger Bands and below 40 LWMA .

No Entry if Stochastic is in Oversold

RE-Entry: wait retracement Stochastic on the 50 level line.

Exit position:

Stop loss 10-12 pips or previous swing.

Profit Target: First at levels pivot, or predetermined Profit Target 6-9 pips Majors pairs, 9-15 pips volatile pairs.

In the pictures Stochastic, Bollinger Bands and LWMA's scalping system in action.

Share your opinion, can help everyone to understand the forex strategy.

Red and Blue

Scalping with TDI, Real MACD, STochRainbow

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