The system of short-term trading at the Forex
The name of the system indicates that it is designed for quick profit by the scalping method. This system is based on a single indicator “Free Scalping Indicator”. This indicator is a product of the famous creator of indicators and trading systems, Carl Dittman. Here the system is presented in its purest form, but it can also be used as part of other systems. Main working timeframes – 1 minute, 5 minutes, 15 minutes. The system is applicable to all currency pairs and indices. Trading with indices is more difficult and not all brokers provide such an opportunity. You can find out how to choose a forex broker for index trading on our website.
In the attached file there are two variants of the “Free Scalping Indicator” indicator. Both are located in the lower windows of the terminal. One of them is displayed with red and green bars, the other with yellow and red bars of different heights and positions relative to the zero line. The main rule of the system is to trade only in the direction of the main trend. The main trend is determined by the “Trend Magic” indicator and the check on the higher timeframe. If, for example, a sell signal appears on the M15 chart, but the trend on the H1 chart is up, the signal is ignored. In the flute market, any signals are also ignored. Flat market is determined by the horizontal line of the indicator “Trend Magic”.
On the hourly chart, the blue line of the “Trend Magic” indicator and both versions of the “Free Scalping Indicator” show the upward direction.
We’re going to schedule M15. Yellow bars of the lower indicator begin to rise. After the green bar appears in the upper window of the indicator, we open a position to buy. The stop is set 5 points below the minimum of the previous candlestick. The position is closed when the red bars of the “Free Scalping Indicator” indicator appear.
Here’s the sale on the M15 chart. The price fell below the red line of the “Trend Magic” indicator, and red bars appeared in both windows of the “Free Scalping” indicator. The position is closed when yellow and green bars of this indicator appear.
Other options for exiting the position can also be used. For example, use strong resistance and support levels for this purpose. In such a case, such levels should be defined in advance.
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