FREE FOREX STRATEGIES

Scalping system #9 (Trading by Psychological Levels)


Submitted by Patrick Bourgeois

This is a very powerful winning strategy!!! We only use psychological levels to enter our trades. One of the main rules is NEVER TRADE AGAINST THE H1 CANDLE COLOR. Levels are on the screen every 00, 25, 50, 75, 00.

Another rule is: If H1 and D1 candle color are the same get ready to make more pips. If the colors do not agree be aware that a lot of times you just can grab a few pips (be happy with 5). This is a scalping strategy.

You are not allowed to enter twice in 1 hour. This is to prevent you from overtrading. Remember you only need 2% a day to get rich in the future all the rest is fun but can be greedy.

For MT4 traders i insert my money management rules, the psychological indicator, the 1h candle color overlay and the multi candle color indicator. If you like to trade the 5min chart you can see on the same screen what is going on on the higher tmfs.

Here is a screenshot from the trading method. The above rules are very important to make it succeed so stick to it.

Forex system: Psychological levels

MT4 Indicators:

M-Candles.mq4

SweetSpots.mq4

You'll need two more indicators:

TRO_DRAGON_MONEY_MGMT.mq4
TRO_Multi_Meter_CandleColor.mq4 ,

which you can download at www.kreslik.com.



http://forex-strategies-revealed.com/


Thanks Buddy, keep in a goodwork

All The Best;

Manus168

Hi Patrick... thanks for sharing ur strategy... i´m confuse... u use psychological levels to continue tendence or when price bounce up?

Thanks 4 all...

Great work!!

what is the take profit when H1 and D1 are agree? this strategy is just for eur usd or is used in other pairs?

what are physcological levels

Price levels ending on 00-25-50-75-00.
For example, 1.2300, 1.2335, 1.2350 etc.

First of all this is a scalping method. A lot of great traders use only psychological levels. These are random numbers 00-25-50-75-00. You don't trade the bounce, you only go with the same H1 color. If H1 green get ready to buy on the next level or vice versa!
There is no take profit, you grab what you can. When you feel confident with this method you can trade from level to level. You only need 2% daily to get rich. Why don't take 10 pips if your target is 30 pips away and your SL is at 50. I would have taken the 10 instead of the -50. That's called money management.
Tip: Watch out on the third and fourth level. At these levels price will turn very often.
One of the indicators "sweet spots of gold" plot the levels auto. The point of this method is: You don't need indicators they are all lagging. Trade what you see.

PS. This method can used on every pair you want!

For those who have problems with settings for the sweet spots of gold. Go to the indicators list click on sweet spots take the input tab and change sublevels from 25 to 250 now your screen will be much better. This is because that indicator is written before the 5 digits on MT4