TDI Bounce Scalping Forex Strategy For MT4
The TDI Bounce Scalping Forex Strategy For MT4 is known as Trader’s Dynamic Index strategy. The TDI data is formulated with different kinds of indicators and it makes it one of the suitable scalping tools for the retail traders.
If you are familiar with the Bollinger band, you are going to get the Bollinger band placed in a separate window from the TDI indicator. In the BB, the RSI curve will be oscillating showing the overbought and oversold state. Once you the indicator and chart ready, you can switch to the execution technique.
The scalping strategy is based on BB bounce. This means, the RSI has a multi-stranded signal line and the fast strand of the green line will breach the BB level. After breaching the level, it will again enter the confined region of the Bollinger band. This breaching and reentering are known as the bounce and the scalpers take advantage of such bounce to scalp the market.
When the price hits a major resistance, you need a breach of the RSI line at the top of the Bollinger band. As soon as the RSI curve bounds back to the Bollinger band channel, open a new short trade. The take profit should be placed to the nearest support zone and the stop loss have to be placed above the resistance. Long trades are taken based on similar techniques.
The RSI green line will breach the bottom band after that it will again enter the BB channel. Right that instant, buy the asset. Place the stop below the support and set the take profit to the nearest resistance.
During the use of this strategy, you might have to deal with a false spike resulting in heavy loss. So, never take the trade if the stop loss is more than 15 pips. And the minimum take profit should 20 pips. But if the path is clear for the price, you can use 30-40 pips as your take-profit zone.
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