Scalping system #9 (Trading by Psychological Levels)

Hi Mark,

Yes, you've laid it out correctly. Also note, that if the color of the 1 hour candle is the same as for the daily candle, you can look for few extra pips.
5-8 trades a day.

Regards,
Edward

ALL YOU NEED TO TRADE IS A HORIZONTAL LINE.

Hey Patrick, I AM glad to see you spreading the word about HORIZONTAL LINES at the PSYCHOLOGICAL PRICE LEVELS.

TRO simple rules:

Plot horizontal lines at the prices ending in 00, 25, 50 and 75.

If H1 candle is green, you go long at the first line price touches.

If H1 candle is red, you go short at the first line price touches.

If you want to use the session basis, then you only take long trades

above the open and you only take short trades below the open.

- Avery aka TheRumpledOne

P.S. I am constantly updating my TRO indicators so make sure you search the net for the latest version.

Hey AnnieFX you can trade this whenever you like. You probably know the most volatile hours yourself. For me it is the Londonsession and the early NY session. The funny thing is this is a simple method and easy to apply on multiple pairs at once. About the TRO Dragon MM management indicator you can set things to your hand in the inputfolder of that indicator. If you need help let me know.

If you want the rules again my teacher (Avery aka TheRumpledOne) TRO has put them on this board. This is the man who learned me to be profitable in trading.

In this picture you can see how to change things if you have a problem with the risk of 5%. If you make more then 3 losers out of ten change it to 2%.

Hi guys interesting strategy, i think the one hour candle should be changed to the four hour candle though, i find the one hour candles direction can change a couple of times during the hour, just a thought.

Jon

Hi Patrick,

really exciting after reading your method and the TRO rules. But please could you give us the number of pips for the stop loss.

And also what happens with the M Candles, i know is a dinamic indicator, but in the beginning of the hours the colour is not well established, we don´t have to take trades on the first minutes?

And for example, if M-candles is green and price is in 1.2310 and then price drop down to 1.2300 we should take this trade long?

Thanks for your comments

I have only done this for the last day but so far, it seems like a winner. I have spent about 30 minutes total setting up my trades. In total, 9 trades were made. All 9 were successful. What I do is wait for the new hour to start. Then, I place an entry order. The entry order is placed considering where we are with the daily candle. I am only looking to take 5 pips. I have a stop loss of 25 pips which is probably a little high so I may change it as time goes on. I also only trade pairs that have the smallest spreads (eur/usd, usd/chf, usd/jpy). Lastly, if the price at the beginning of the hour is within 5 pips of the level I'm going for, I don't trade that hour.

Here is an example. Let's say the daily candle for the eur/usd is bearish. I'm only looking for hourly sell trades. Next, let's say the last hourly candle closed at 1.2665. I will place a sell order at 1.2650 with a stop at 1.2675 and a limit at 1.2645. With metatrader, I can also put an expiration time on the trade which I set to expire at the end of the hour. So if the trade isn't taken in that hour, it simply goes away. Now if the last hourly candle closed at 1.2654, I don't take the trade because the price is within 5 pips of the 1.2650 level. From my observations on previous charts, there seems to be a greater chance of hitting the level with a reversal than when it's further away than 5 pips from that level.

So far, I've taken a 5K demo account to 5428.44 in only 1 day! The beauty part is that it really is looking like a set it and forget it type of strategy. You just need to be there at the beginning of the hour to setup your trades and that is it. I'll keep you updated with how it goes.

Happy trading!

Oh, and great site Edward!

Mike