The “Price Action Scalper” is a trading strategy using 4 screens – it is a no indicators Forex strategy. It gives a good chance of profit, with proper risk management – and the possibility of a stable income. This universal system can be used for a very short scalping trading session as well as for a regular day of trading longer trades. We will discuss both methods (when to place orders,take profit, set a stop loss) for both scalping and normal day trading. The “Price Action Scalper” is based on a 4-screen system, and uses the H1, M5, M15 and M30 time frames; protective stop orders including a trailing stop,a stop loss as well as take profit levels. In order to implement the system – all you have to do is to open (in your trading terminal) four windows with the currency pair (for example EUR/USD) timeframes of H1, M5, M15, M30. If you choose “Vertical” in the “Window” menu Metatrader 4 four screens in the terminal will be placed in adjacent windows in order
How it works:
The “Price Action Scalper” system based on a strong current trend confirmation entry signal which is very easy to see on your trading terminal – 4 windows (charts). You will get a signal once per hour (almost every hour).
To use this system you don’t need to sit and watch the market all the time – just get ready at the last minute of the current hour – if there is a signal – place a trade, if not – you are free again for the next 59 minutes until the next trading opportunity. (if you want more signals – you can open 5-6 pairs at the same time – 4 timeframes for each) Simple and convenient!
Buy Entry
-Wait for a current hour candle to close.
-If all 4 of the last candles (M5, M15, M30 and 1H)
closed in “green” – wait for the price to go another 3 pips above the close and instantly place a BUY order.
From the screenshot above:
1. On 1H chart – a 9:00 candle closed green at 10:00.
2. On M30 chart – a 9:30 candle closed green at 10:00
3. On M15 chart – a 9:45 candle closed green at 10:00
4. On M5 chart – a 9:55 candle closed green at 10:00
5. The price goes another 3 pips above the close. If all the above conditions met – place a BUY order at current price:
It is very important to wait until the price moves another 3 pips above the close – it is your double confirmed entry signal.
An opposite rule for a SELL entry.
SELL entry
– Wait for a current hour candle to close.
– If all 4 last candles (M5, M15, M30 and 1H) closed in “red” – wait for the price to go another 3 pips below the close and instantly place a SELL order.
For example:
1. On 1H chart – an 11:00 candle closed red at 12:00.
2. On M30 chart – an 11:30 candle closed red at 12:00
3. On M15 chart – an 11:45 candle closed red at 12:00
4. On M5 chart – an 11:55 candle closed red at 12:00
5. The price goes another 3 pips below the close. If all the above conditions have been met – place a SELL order at the current price!
This example is, of course, perfect. In reality, a candle, say, M15 may be closed green. In this case, other candles being red, we will have to wait for the next candle.
STOP LOSS and TAKE PROFIT
1. Place a fixed stop loss at 2 pips below the low of the previous 1 hour candle for a buy trade or 2 pips above the high of the previous 1 hours candle for a sell trade
2. Place a fixed stop loss at 20 pips away from your entry point:
When the price reaches 15 pips – stop loss is transferred to breakeven. Depending on your
trading preferences, you can resort to the trailing stop.
3. Place your stop loss order near the major highs/lows – major support and resistance levels. The “Price Action Scalper” system can be successful only by strict compliance with the rules. Take-profit should always be 2-3 times greater than the stop loss.
Place a fixed take profit at 30-40 pips away from your entry point.
Usually You can expect: 75-80+% of your trades to be profitable .
Note for This system: do not trade right before, during or immediately after major news releases.
Recommended setup of the “Price Action Scalping Strategy”.
I recommend to use the strategy on a couple of pairs at the same time. In order to do so – trade 2-4 major pairs at the same time – in this case you will have to open 4 charts for each pair: M5, M15,