The Green Wave Forex strategy is a straightforward scalping system designed for high-volatility currency pairs during active market hours. It combines standard and custom indicators to generate precise, short-term entry signals on any tradable instrument.
Entry Parameters
- Currency pair: Any
- Timeframe: M5 (primary), D1 (trend filter)
- Trading time: Any (best during London–New York overlap)
- Strategy type: Scalping, indicator-based
Indicators Required
Install the following indicators on your chart. Download links are provided in the archive at the end of this article.
- Envelopes
- Moving Average (89-period)
- trend3 (custom indicator)
Long Entry Conditions
Open a Buy order only when all of the following conditions are met:
- On the D1 chart, the candlesticks of the previous two days are green
- On the M5 chart, the histogram is above the zero line and colored green
- Price crosses the 89-period Moving Average (thick white line) from below to above
Short Entry Conditions
Open a Sell order only when all of the following conditions are met:
- On the D1 chart, the candlesticks of the previous two days are red
- On the M5 chart, the histogram is below the zero line and colored red
- Price crosses the 89-period Moving Average (thick white line) from above to below
Position Management
- Place Stop-Loss just below the most recent local low (for long positions) or above the most recent local high (for short positions).
- Set Take-Profit at the nearest dashed Envelopes line. Alternatively, upon reaching that level, move Stop-Loss to breakeven (at entry price) and extend Take-Profit to the next dashed line.
According to ForTraders’ analysts, the Green Wave strategy stands out for its simplicity, clarity, and universal applicability across instruments — making it ideal for beginners learning how indicators work and how to execute and manage scalping trades.
Download Green Wave strategy template and indicators
FAQ
What timeframes does the Green Wave strategy use?
Primary: M5 for entries; D1 for trend confirmation (requires two consecutive green/red daily candles).
Which indicators are mandatory?
Envelopes, 89-period Moving Average, and the custom trend3 indicator — all included in the downloadable package.
Is Green Wave suitable for beginners?
Yes — it uses only three visual, rule-based signals and emphasizes clear stop-loss/take-profit logic, making it excellent for learning scalping fundamentals.
