Arrow Scalper Binary Options Strategy
The Arrow Scalper system is a strategy for the M5 and M15 charts. This binary option trading strategy is based on the Buysellarrowscalper.ex4 indicator and gets confirmatory support from the MAAngle indicator. This trade strategy is successful about two-thirds of the time when executed as it should be.
- MetaTrader4 Indicators: Buysellarrowscalper.ex4 indicator (default settings), MAAngle.ex4 (default settings)
- Preferred Time Frame(s): 5 minutes (M5), 15 minutes (M15) chart.
- Recommended Trading Sessions: Any time. Depends on when the indicator signal appears on the chart.
- Currency Pairs: Any. It can also be used on other asset classes.
CALL TRADE Example (click the image for full size):
The Buysellarrowscalper.ex4 indicator draws a wavy line across the highs and lows of candles and also turns out directional arrows which point to the direction of the trade. The MAAngle indicator is used for confirmation. The trades are taken as described below.
Each trade is a double-candle setup:
- Signal candle, which is where the arrow signal appears. This candle must be allowed to close to be sure the arrow signal does not repaint.
- The 2nd candle is both for trade entry and expiry, with entry price being the open price and expiry value being the closing price of the candle. Since the chart is an M5 chart, the trade will last only 5 minutes.
CALL ENTRY RULES
A CALL trade is setup when the following occurs:
- The MAAngle indicator must be showing green histogram bars which are in positive territory to indicate bullish bias.
- Wait for the ex4 indicator to draw a blue line on the charts, along with a blue direction arrow which points upwards. Once the candle has closed with the UP arrow showing on it, set a CALL trade immediately the next candle opens.
Expiry for CALL Trade
The expiry of the trade is the closing price of the entry candle. The default start expiry time for most binary options platforms on a Call/Put trade is 5 minutes – 15 minutes so this works perfectly for your trade.
PUT ENTRY RULES
A PUT trade is setup when the following occurs:
- The histogram bars of the MAAngle indicator should be red in colour.
- Wait for a red arrow which points downwards to form on a candle along with a red wavy line. When the candle on which the arrow forms closes, open a PUT trade as the next candle opens.
Expiry for PUT Trade
The trade opens and ends with the single candle on this 15-minute chart.
Precautions: Only two out of every three trades will work out well. Any losses sustained with this strategy occur when the market is range-bound. Try to trade this strategy when the market is trending (e.g. after a major news release).
About The Trading Indicators
The Buysellarrowscalper.ex4 indicator, like all indicators that show arrow signals, is very likely to repaint. Only trade the next candle when the arrow has fully formed on an eligible preceding candle. Do not be tempted to rush the trade entry.