Author: Robert Hill
Contrarian Scalping is an forex strategy which works as a contrarian / counter – trend strategy. Advantage of these kind of strategies is that you can have good profitability while there will be no great gains/movements relatively to what you see in the trend direction of time frame.
Time frame: M15
- [Custom] Stochastic cross alert (KPeriod=14 DPeriod=7 Slowing=3)
- Envelope (14)
- Bollinger bands (20, 2)
- ADX (Average Directional Movement index) (13) (with moving Average 5)
SELL: When price goes up beyond the upper bb and upper envelope, wait arrow down stochastic, if ADX cross down moving average or is below 30
BUY: When price goes down both lower bb and lower envelope, wait arrow up stochastic, if ADXCross down moving average or is below 30
Stop loss: 2 pips above the upper band or below the lower band of the BB.
Take profit: 10 pips or on the middle band.