FATL Pulsback Forex Indicator (MT4)

FATL Pullback + DSL DMI Oscillator MT4 Scalping Strategy

Introduction

This scalping strategy combines the FATL Pullback Forex Indicator with the DSL DMI Oscillator Indicator.

The FATL Pullback identifies price direction through its red moving average, while the DSL DMI Oscillator filters out weak signals by confirming momentum above or below its zero line.

This setup works best on M1 to M15 charts for quick trades during high-volume sessions. It’s ideal for traders who want clear rules for entries and exits.

Setup

• Apply the FATL Pullback indicator to your chart.
• Apply the DSL DMI Oscillator to the same chart.
• Use liquid currency pairs (EURUSD, GBPUSD, USDJPY, XAUUSD).
• Trade during the London and New York sessions for better volatility.

Buy Entry Rules

• Price must close above the red moving average of the FATL Pullback indicator.
• The DSL DMI Oscillator must be trading above the zero line and draw the start of a green line (bullish momentum).
• Enter a market buy at the close of the confirming candle.
• Stop loss: a few pips below the red moving average or the last swing low.
• Take profit: target the next intraday support/resistance level or 8–15 pips on M1/M5 charts, depending on volatility.
• Exit early if price closes back below the red moving average or DSL turns red below zero.

Sell Entry Rules

• Price must close below the red moving average of the FATL Pullback indicator.
• The DSL DMI Oscillator must be trading below the zero line and draw the start of a red line (bearish momentum).
• Enter a market sell at the close of the confirming candle.
• Stop loss: a few pips above the red moving average or the last swing high.
• Take profit: target the next intraday support/resistance level or 8–15 pips on M1/M5 charts, depending on volatility.
• Exit early if price closes back above the red moving average or DSL turns green above zero.

Advantages

• Two-indicator confirmation reduces false signals.
• Clear visual entries and exits are suitable for fast trading.
• Works well during strong momentum sessions.
• Flexible profit targets based on intraday volatility.

Drawbacks

• Choppy or low-volume markets may produce whipsaws.
• Requires strict stop losses to protect against reversals.
• Frequent trades may lead to spread/slippage costs on small timeframes.
• Signals can appear late if volatility spikes.

Example Case 1 — EURUSD, 5-Minute Buy

Price closes above the FATL Pullback red MA while DSL DMI is above zero, drawing a green line.

You enter a buy with a 6-pip stop and target 12 pips.

Price rallies quickly to the next resistance, where you close for +12 pips profit.

Example Case 2 — GBPUSD, 1-Minute Sell

A quick downtrend develops. Price closes below the red MA while DSL DMI is below zero, drawing a red line.

You enter a sell with a 5-pip stop and aim for 10 pips.

Price drops sharply to support, and you exit for +9 pips profit before DSL DMI starts turning green.

Strategy Tips

• Trade only when both indicators align to avoid false breakouts.
• Stick to high-volume hours for better price movement.
• Adjust stops and targets to pair volatility (major pairs vs. gold).
• Avoid trading just before major news releases.
• Test your broker’s spread on lower timeframes to ensure profit potential.
• Consider trailing your stop as soon as you’re in profit to lock gains.