Scalping system #9 (Trading by Psychological Levels)

I think this system works if you trade with the trend of the previous bar, pending that there is no immediate support or resistance barring it from making the dash. I've noticed that if there is major support/resistance at that level then forget about it. I've entered a few trades now based on the rules given by the author and so far my equity curve is a vertical line. . . Straight down ;P. After I applied analysis of local support and resistance I actually was able to target the next level and beyond for a TP. This is a good strategy but I don't think the levels have to do with anything.

Thank you for the positive emotions! :)
As well as for constructive criticism.

Absolutely agree, there is no way you can trade well without at least support/resistance levels.

Regards,
Edward

It seems kind of funny that wherever I go there is someone pi$$ing in my cheerios. (LOL) I've been trading forex for 2 years now, and have learned that it doesn't matter what kind of system you use, they all work when the market is trending. I think this "system" could work well if it where tweaked with some good old fashioned Horizontal support and resistance. I do not agree with "go long on a green hourly bar when price hits 25 or 50 or 75 or 00". What if there's major resistance at 02? You just lost your A$$! You are better off flipping a coin, than blindly entering the market at a random number. I know, I know, "These are psychological levels". If you believe that then now they are. To you anyway. The market makes them random but to you now they're special. So the next time the market approaches a "Psychological level" or what I will now call "Your Special Holiday Level" Light a candle and open your presents, and go long! (Or short. Depending on the color of the hourly candle and the alignment of the moon according to its proximity to Jupiter. And whether or not you're wearing your lucky socks. If not -NO TRADE- Unless the pope and Jesus tell you it's okay.)Okay, I'm just kidding. But that's pretty accurate when it comes to trading with indicators tho.
Any ways, I think that support and resistance should be thoroughly examined before plotting to overthrow the market. I personally trade break outs on the 5 min chart and average 20 plus pips a day sometimes more. All based on support and resistance.

I agree with the above: for instance, the person that posted the below glowing report, and ended with saying "I will keep you updated" has never posted again. This is no doubt because he had one good day and then blew out his account:

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.

Guys, I don't know how many times I've seen "TRO" post this "system." The problem is, this is not a trading system, or if it is it is doomed to fail. The reason is because a system must include a stop loss, or at least an acknowledgment of where you will get out if the trade goes against you.

TRO has been banned from every forum I've ever seen him in. The reason is because he tries to tell people to trade this way, and they will do nothing but blow up their accounts in the long run, because there is no method here. Simply "trade when price hits the line" does not a system make. You might make many successful trades in a row, but where do you get out when it goes against you? If you say 25 pips then you need to win 6 times in a row to simply cover 1 loss.

So unless "TRO" can show us what to do when the trade goes against us, he SHOULD be banned, as newbies will blow out their account trying to trade this way.

this pshylogical patttern is not clear can u please mail me in detail at dharmendar_09@(at)ahoo.com

huh?

Comment from Rich on June 24, page 10.

Thomas

I do not seem to be able to locate the 2 links below
TRO_DRAGON_MONEY_MGMT.mq4
TRO_Multi_Meter_CandleColor.mq4

can someone help to direct? Thanks

It is so easy to create myths of successful systems in forex because people in forex are LAZY! Every question posted here can be answered by back testing. If the system doesn't make money in the past why would it in the future? Also it is totally irrelevant what the hourly bar is. That won't stop you from price getting over psychline by 3 pips then all the way back to stop you out which happens all the time!
I use psych lines and make money with them all the time. Only after losing so much money using the method described here on the forum. If you want a copy of the system either figure it out for yourself or pay me with money you got from working to compensate for all the work I have done discovering a profitable system.

"You are not allowed to enter twice in 1 hour"

I have a doubt, let's say we are between 1.3875 and 1.3900, the hourly candle is bullish, and 1.3900 level breaks, I open a trade and it gets 5 pips in a few seconds at 1.3905, I closed it.

But then it retraces back to the 1.3900 level, and of course the hourly candle is still bullish, do I take the trade again or not?

These are not boxes, if you step away form charts, you'll that these are candlesticks from a higher time frame.

Thomas

i now have all my indicators working a treat, but i am very confused with all the candle sticks in boxes as they dont seem to have much meaning to me, could someone please help me to understand as i am a newbie and need to be explained to like a child ......any help will be greatly appreciated

barry

got it thomas thanks