Scalping system #9 (Trading by Psychological Levels)
Submitted by User on February 6, 2009 - 15:20.
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.
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I am from Belgium and I would like to ask PatrickB who is also
from Belgium to contact me at the below address:
areaganamerican@yahoo.com
Blessings, Eddy
Hi Patrick,
Thank you so much for your reply.
Could you please explain what "run" mean?
Also, overlays here means the 1H color candle, right?
Actually, I couldn't understand what you meant.
I'm sorry about that, but I really appreciate your help.
Best Regards,
Eins
the way this method is explained here is very mechanical and programmable the only indicator you need is price! so i am having this programmed into an EA for mt4. but here's what some of the newer people might not realize. since you're not really using any indicators, just whole/half numbers and OHLC prices, you can find a programmer for any platform that allows automated trading and have it programmed! just a tip for those who like EA's. this would be the only EA I would trust since not one of those lagging indicators is programmed in! great work! thanks for the tips!
this is a very mechanical system. in fact, you can program it if you look closely at one post in particular. that's what i did and i ill see how forward testing goes on different pairs the the London and us sessions. should only have to trade 4 days out of 5 days of the week. will let you know how this goes. should work out great though because it will be an EA that can know the color of the daily candle and H1 candle, not use martingale/hedging/average down and can scalp! I have yet to see an EA that can accomplish this without any indicators and may have nailed it. if so, i can have this programmed on any ECN platform that allows automated trading! very universal! thanks!
My Expirience with the overlay candles is to be carefull when you are at the beginning of a new hour.
If you are just a few minutes in to a new hour the color of the 1 hour candle will most likely change, therefor it is very helpfull to look also at the color of the previous 1 hour candle.If you are 30 minutes in to the current hour, the candle color probably holds.
Also look at the size of the 1 hour candles, if they are just a few pips then they loose their meaning.
Further notice that if you are in the second or thirdth candle with the same color, changes are higher for a reversal.
The color candles are handy if you are scalping in the 1 and 5 minute chart to give you a quick overview of the current hourly trend so that you can find a low or high within that range and enter a trade in the direction of the 1 hour candle only ( with the trend).
My tip is to look at the long term trend to scalp short term!
PatrickB
Many thanks for sharing this strategy. May I ask if there is any advice on safely trading level to level?
Rgds
Sandra
Hey Sandra,
I think safety factor would be the same from level to level, all you have to do is remember about the stop and take profits when they are being offered.
Rich
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