Forex trading with a lot of fast trades is called scalping. It assumes taking profits at short intervals of time. This is a profitable way, but it takes a lot of time, knowledge and requires constant attention of the trader. That’s why such systems are not recommended for beginners. This trading system is a typical example of scalping. Trading is conducted on a one-minute timeframe. The spread of the currency pair should be minimal. Therefore, it is necessary to choose a broker and currency pairs with spreads of no more than 2 points. ECN brokers are well suited for such trading. The principle of this trading strategy is based on market volatility. That is, deals are made only during the movement of courses. The main indicator of the system “Damiani_volatmeter v3.2” helps to find such periods. It filters out so-called “market noise”. The indicator is located in the lower window of the terminal and is a green and gray line. If the grey line is above the green line, trading is prohibited. In order to facilitate visual perception, the red stripes at the bottom of the window show the periods of market noise. The standard indicators of the Metatrader “ADX (DMI)” and “Momentum (14)” are used to confirm the signals. In addition, the volume display is enabled in the terminal settings. The “Volume” tool shows the number of ticks in each bar, thus confirming the market volatility. The “T Stop” indicator is used to determine the stop levels and closing points of positions. It is reflected as red and blue dots on the main chart.
The green line of the indicator “Damiani_volatmeter v3.2” should rise above the gray line to enter the buying process. The Momentum (14) indicator line should cross the middle red line and the blue ADX line should rise above the red dotted line. Preferably the volume bar should be green. The stoploss is set below the blue point of the “T Stop” indicator.
To enter the market, the green line of the indicator “Damiani_volatmeter v3.2” should rise above the gray line. The “Momentum (14)” indicator line should cross the middle red line and the blue “ADX” line should fall below the red dotted line. It is desirable that the bar of the volume indicator be red. The stoploss is set above the red point of the “T Stop” indicator.There are several ways to lock in profits. The easiest thing to do is to set the fixed takeprofit at 5-10 points. You can also close a deal when changing the indicator “Damiani_volatmeter v3.2”, or when the opposite color point appears in the indicator “T Stop”. In the examples above, the positions were closed after the grey line had risen above the green line.Download system files