CandleStick Price Action Trading Strategy can be a good way to time the entry for a position as it does not use any lagging indicators. For example, entering long on a bullish engulfing candlestick pattern a few bars after a bullish moving average crossover can offer a higher probability for a sustained move than merely buying and selling on the moving averages. The advantage that candlestick price action offers is that it can be used to any trading methods to improve the odds. However, when applied by itself, Price action does have some limitations. For example, questions such as, where to set the target levels is a commonly asked question or perhaps, knowing when to sell when a trend line is broken. This could vary from one trader to another, as in most cases, support and resistance levels does comes with a bit of subjectivity.
Combining Candle Price Action Trading with Buy Sell Arrow Scalper MT4 Indicator
The Buy Sell Arrow Scalping MT4 Indicator is indeed a versatile trading strategy by itself. Limiting the losses while allowing the winners to run, this simple yet powerful trading indicator can be further enhanced when combined with candlestick price action trading.
In this strategy, we look at a few candlestick patterns which when combined with the bias from the Buy Sell Arrow Scalper MT4 Indicator can make trading more profitable.
Inside bar confirmation
In the first example, we are first alerted to long position based on the buy arrow that was printed. However, instead of merely going long at the signal, we wait for price action to confirm the bullish bias, which happens a few bars later, when the inside bar is formed. A long position is taken on breakout of the inside bar with stops set to the low. As the long position progresses, we then see another inside bar being formed. The stops are now trailed to this higher low while keeping the long position intact. The long position is then exited when the Buy Sell Arrow Scalper Indicator gives an opposite signal.
Candlestick Price Action Trading Strategy – Inside Bar Confirmation
Trend line break confirmation
In the next example, we make use of trend lines and then confirm the bias using the Buy Sell Arrow Scalper MT4 Indicator. The following chart shows the falling trend line being plotted. However, following the breakout, theBuy Sell Arrow Scalper MT4 Indicator alreadytriggered a long signal. We simply wait and plot the break out level, while waiting for a retest to the break out. When price falls back to the breakout level, notice how the Buy Sell Arrow Scalper MT4 Indicator prints a buy signal. Entering long on the signal and using the previous levels of theBuy Sell Arrow Scalper MT4 Indicator shows how neatly prices react to the support and resistance levels. Prices rally and reach both the levels plotted before breaking down lower.
CandleStick Price Action Trading Strategy – Using Trendlines
Support and Resistance Levels
The Buy Sell Arrow Scalper MT4 Indicator can also be used as a support and resistance indicator. In the first chart, we plot the support and resistance levels whenever the Buy Sell Arrow Scalper MT4 Indicator turns flat.
Buy Sell Arrow Scalper MT4 Indicator – Support and Resistance Level
As price evolves, we continue plotting the support and resistance levels until price gives us the defined targets. Once we have the levels plotted, this is how you can trade based off the Buy/Sell arrow scalping indicator.
Notice that after the new support and resistance levels were plotted, the Buy Sell Arrow Scalper MT4 Indicator prints a sell signal at the top. We however wait for price to clear the lower support and then sell. For the targets, the previously identified lower support level is used to exit the long positions.
Trading with Support Resistance using Buy Sell Arrow Indicator
CandleStick Price Action Trading Strategy with the Buy Sell Arrow Scalper MT4 Indicator
As you can see there are different ways that can be applied to the Buy Sell Arrow Scalper MT4 Indicator. Besides its original use of scalping the markets, this indicator can be used in a number of ways and especially helpful when it comes to trading with Support/Resistance levels or with trend lines. The fact that the indicator then plots the signals can be taken when there is a bias confirmation with your price action techniques.
Do you have more ideas on how to trade with the Buy Sell Arrow Scalper MT4 Indicator?
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