Psych level scalping Trading System For MT4
Table Of Contents:
- Psych level scalping Trading System For MT4
- Selecting the trading instrument
- Psych level scalping Trading System For MT4 - Long trade setup
- Psych level scalping Trading System For MT4 - Short trade setup
- Psych level scalping Trading System For MT4 - Trade Management
Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.
The Psych level scalping Trading System For MT4 is a very elegant scalping strategy. Unlike the traditional scalping system, you don’t have to develop headaches in selecting the right time frame. The strategy has been uniquely developed to look for the trade signals in the 5 minute and 15-minute charts. TRO_DRAGON_MONEY_MGMT, SweetSpots.mq4, m-Candles, and M-Candles has been used to contrast this premium scalping strategy. The rookies might be thinking that 4 indicator is not enough to find quality signals. But the elite traders know the fact, a simple strategy is the best way to earn more money. And when you reduce the use of an indicator in any system, the chance of spotting the quality signals rises exponentially.
After installing the necessary indicator, the sweet spots indicator will create a bunch of horizontal colored lines. These horizontal lines will act as the static support and resistance level. The m candle indicator will box out a bunch of candles inside a big candle. The color of the candle represents the overall momentum of the trend. But make sure you are not executing any trade against the color of the candle. Now let’s come to the dark shaded zone. The dark shaded zone helps you to determine the take profit and SL price for the trade. However, to find a reliable trade signal, you must choose the trading instrument very carefully.
Selecting the trading instrument
To maximize the profit while using the Psych level scalping Trading System, a trader must pick the trading instrument wisely. The novice traders should start taking the trades in the major currency pairs only. One of the key benefits of trading the major pairs is price stability. Analyze the historic price movement of the major currency pairs and you should see a very less false spike. Since this scalping strategy is based on an 8-10 pips stop, it is better to avoid choppy currency pairs.
Since your trades will be taken in the 5 and 15-minute chart, you must consider the spread. If the spread of the asset goes above 3 pips, immediately avoid the asset. However, skilled traders often take trades when the spread is 3 pips but in that case, they select the 15-minute chart and major currency pairs only. In case you want to trade in the cross pair, you should be selecting a trending pair having spread less than 4 pips. And avoid taking the trades on critical news hours as the spread and volatility increase significantly. Now let’s see how the elite traders take long and short trades with the help of the Psych level scalping Trading System.
Psych level scalping Trading System For MT4 - Long trade setup
The first step to use the Psych level scalping Trading System is to find the existing trend. For the long trade setup, find an asset showing an obvious uptrend. Now, wait for the price to drop to the sweet spots. You can easily identify these levels by analyzing the horizontal colored lines. If the price respect the sweet support level, analyze the color of the previous colored candles drawn by the m – candles indicator. If it is green, you might get a chance to take the long trades in the next 1 hour. If the price forms a bullish price action signal inside a big green candle, shaded with the dark green color, execute the long order.
When you execute the long trade, be sure you are not risking more than 8 pips. However, if the trade is taken in a cross pair, the Sl price should be 10 pips. But no matter which instrument you chose the take profit level will be 20 pips. You are taking the trades with a 1:2 risk to reward ratio. Those who have a fair knowledge about the price action signals should use the bullish candlestick pattern in determining the perfect position to take the long order.
Psych level scalping Trading System For MT4 - Short trade setup
Short traders are usually executed when investors see rejection in the sweet spot horizontal lines. These colored lines work as an excellent support and resistance level. But the rejection of the resistance level must take place inside a red-colored candle. The red color candle suggests the bears are dominating the asset and getting ready to make new lows in the 5 or 15-minute chart. Try to take the short order confirmation inside the dark-colored zone as it gives you the indication that the price is in a stable state. However, avoid looking at the trading instrument when the price enters into a consolidation mode. Consolidation trading is a bit more advanced and it requires basic knowledge about news analysis.
Some of you might be thinking about the Psych level scalping Trading System can’t be used to trade news. Surprisingly many experts use this indicator to trade high impact news like NFP, GDP, etc. But in that case, they use the 5-minute chart only. 30 minutes before the news release, they look for reliable short trade signals inside the red-colored candle. Once they spot the bearish trade signal, they set the SL to 10 pips but the TP is set to 40 pips. They do so because they know the market volatility will increase significantly right after the high impact news.
Psych level scalping Trading System For MT4 - Trade Management
The traditional users do need to have to deal with advanced trade management techniques since the SL price will never exceed 10 pips. By using a simple 1:2 risk to reward ratio, the traders can easily make a decent profit by using this amazing scalping system. However, if you intend to deal with the news data, you can make some changes to your SL and TP price. It’s not necessary, you have to keep the Sl price below 10 pips when you have the potential to win 100 pips. In that case, you can even risk 20-30 pips by using this amazing Psych level scalping Trading System.
The traders have to very cautious about the risk factor in each trade. If the risk factor exceeds 2% of the equity, the traders will be in big trouble. Since the scalping strategy generates 4-5 trades per day, it is better to start trading with 1% risk. When the risk factor is lowered to 1%, the traders can easily embrace dynamic losses. However, you do have the liberty to take a break when you face frequent losing orders. By taking a small break from the market, you can gain back your confidence. This will allow you to make better decisions when you analyze the market data with a fresh mind.
Scalping is mostly developed for expert traders. The senior traders have often guided their students not to scalp in the first year of trading. But things have changed a lot and you don’t have to draw the support and resistance level manually. After installing the necessary indicators, you can easily identify the critical trading spots. Identification of the SR level is not enough to take the trades. You have to follow strategic steps as discussed in this article to make smart decisions. At times you will lose some trades and there is nothing you can do to avoid the losses.
After using the Psych level scalping Trading System for a few months, some of the rookies start seriously breaking the rules. In general, they start avoiding the color of the big candles and the impact of the trend. But these are the two most important factors which identify the false signals in the market. To make a consistent profit, stick to the major trend, and execute the trades with managed risk so that you don’t have to lose a big sum of money from a single trade.
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