Scalping system #11 (The Center of Gravity)
Submitted by User on February 27, 2009 - 18:35.
Submitted by Ashur
Alright first of all, I just want to say the indicators that i'm going to post and show are not mine so i take no credit for them. The center of gravity indicator was created by Oan. The idea is based on Mostafa Belkhayate's system. Also the sweet spots indicator was taken from "Patrick Bourgeois" with his submission of "Trading by Psychological Levels". So I'm going to upload all the indicators, and all you do is, put them in Metatrader/Experts/Indicators folder. Im also going to upload the template so all you have to do is load the template.
The rules are these:
- Only trade 5 min chart
- Only trade in the direction of the Center of Gravity lines, so if they are pointing downwards then you only enter short positions and if they are pointing upwards you only enter long positions
- take profit is always one level above the level you entered your trade at.
- to be honest with you i never used a stop loss i only closed the trade when the lines pointed against me, but i bet we can work something out for a stop loss in this site.
- I mainly trade eur/usd and sometime gbp/usd, but i'm starting to look into trading the gbp/jpy also
- trade this system on a demo account until you are ready, don't rush into the market.
To enter a short position:
- center of gravity lines must be pointing downwards
- the price must be over the middle center of gravity line
- you sell at the first level on the sweet spots indicator that the price hits
- if price continues upwards you would sell at the 2nd level it hits once again.
- take profit point would be at the line below the 1st level you entered at. Some times the market will not hit the target exactly so just to be safe put your take profit a few pips above it.
To enter Long positions:
vice versa short position rules
A few pointers:
- try to stay away from Friday's and try to hold your self from trading NFP week.
- I find the absolute best time to trade this system is 8AM-12PM Eastern Time.
Note: This system does repaint, so backtesting is useless. But don't worry the system is very profitable, it just takes some practice. You will see its true value with a little bit of forward testing ;)
Once again I'd like to thank "Oan from www.oan4x.com" for helping me, "Patrick Bourgeois" for the indicator, and all the people form www.forexfactory.com that helped edit and put together this system.
If I forgot to add something, I will edit and put it up for sure.
If anyone has any questions feel free to ask.
Thank you, Ashur, from entire Forex Strategies Team and our visitors for a great system!