System for trading on Forex market “Rock Solid 10 Pip Day”
The “Rock Solid 10 Pip Day” system was developed for beginner traders to show that trading in the currency markets can be successful and consistent. The main principle of trade is momentum. The market impulse is a trend fuel, without an impulse the market has no obvious strong directions and, therefore, does not work in our favor. This system is designed to detect changes in the pulse, and to receive signals about its amplification. The advantage is that we are entering the beginning of a strong trend, which in turn means that we can get more profit. The accuracy of system signals in most currencies is about 70-80%.
The system can be used on any currency pairs and different timeframes. However, it is best to use it for intraday trading and to get a small daily profit. Working timeframes – five-minute and fifteen-minute charts. For this kind of trading, scalping brokers are better suited. It is not recommended to trade during Flat periods. The best time is the European session and the beginning of the American session, when most of the impulses appear. The preferred currency pairs with the dollar, such as EUR/USD, GBP/USD, AUD/USD, USD/JPY
A set of six indicators determines the strength of the momentum and gives signals to buy or sell. These are Fortsettelse, GM Signal, GTL-index, Pescador, SOLVINDEN CleanY and UTW_Bulls & Bears. They are all located in separate windows at the bottom of the terminal. The main chart has a 21-period simple moving average line. It’s purple in the attached template. In this system, this line serves as a determinant of the trade direction. If the price is higher than it, we buy, if lower, we sell. You can download the indicators and the system template by clicking the link at the bottom of the article.
This screenshot shows an example of opening a Buy position. After the price rose above the MA21 line, we look at the indicators. The bars of the indicator “UTW_Bulls & Bears” have become blue, and the rest are green. Stop-loss is set at the nearest minimum. In this case, the position is closed after the red bar of the indicator “UTW_Bulls & Bears” appears. It is also possible to set a fixed Take Profit equal to twice the number of stop-loss points or close a position after the price crosses the purple line.
This fifteen-minute chart shows an example of trading on a price drop. We sell after the price fell below the MA 21 line, and the indicators became red. Stop-loss is set at the nearest maximum. Positions are closed according to the same principle as for purchases.
The peculiarity of this intraday system is that we take a small profit every day. Under favorable conditions, you can make several transactions per day. On the example above, the price stays below the middle line and recovers to it, but the sell signal appears again.
Download system files