Scalping system of trading at Forex market “Center of gravity”
This trading system is designed for scalping – quick profit from a part of currency exchange rates movement. The system is based on the indicator “Center of gravity” and is used on currency pairs with a small spread. Such pairs include EUR/USD, GBP/USD, AUD/USD and some others, depending on the broker. The Center of gravity indicator refers to channel indicators. It’s on the chart with five lines. Above and below the center, two more lines. The price moves from the bottom line to the top line, and backwards. This indicator is updated when new prices appear. It is used mainly on small timeframes. Therefore, the system is designed for the M5 chart. The “Sweet spots” indicator is used in the system to determine the entry and exit points. This indicator shows certain price levels, which are more important than others. These are so-called “round” price levels that end at 00, 50, 25, etc. For example, 1.4000, 1.4400, 1.4450. The market often stops at such levels. Therefore, they can be used as support and resistance levels. In the settings of the indicator, you can change the step of 25, 50 or 100.
The trend direction can be easily visually determined on the chart. If the blue line goes down, we only sell. We open a position only if the price is on the middle line or higher. The entry points are the levels of the “Sweet spots” indicator. If the price continues to go up, we open another position at the next level after 25 pips. The stoploss is set one level higher and the takeprofit one level lower.
If the indicator line is directed upwards, only buy. Position is opened at the level of “Sweet spots” indicator, if the price is below the blue line. Close, respectively, at the next level.
Trading under this system is recommended during the London session and at the beginning of the American session.
Download system files.