Volatility Scalp Trading System For MT4
Table Of Contents:
- Volatility Scalp Trading System For MT4
- Volatility Scalp Trading System For MT4 Long trade setup
- Volatility Scalp Trading System For MT4 Short trade setup
- Managing the trades
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 Volatility Scalp Trading System For MT4 is dynamic in every aspect. It uses the best possible combination of modern indicators so that investors can get hold of the best setups. Damiani noise, ADX (DMI), Momentum (14), and T Stop. Most people have a problem with the Damiani noise tool.
When the Damiani noise indicator merges with the DMI version of ADX, it becomes hard to track price movement. Everything needs to be processed in a systematic order. If the processing steps vary, the trading result will vary. Getting a powerful system doesn’t assure you will get satisfactory results from each trade. Intact, everyone should be expecting some losses no matter which system they go for. In any business, losing and winning orders run side by side.
Expecting to have a positive outcome of 100% of the time is the act of amateur investors. The volatility scalping system takes advantage of the price movement. Study the formation of the candle, price pattern, and position. These three important metrics will show you important information where you can buy the asset. It may sound like a very easy task but it is a very complicated problem. You have to use a guideline to earn money.
This post is going to the blueprint for the volatility scalp system. Whenever we speak about the blueprint, we are discussing a well-curated edge that has a high win rate. Knowing the system has a high win rate should never make you greedy. Greedy investors will be always losing as they don’t have the grip to manage the losses. Let’s being to learn about buying and selling orders.
Volatility Scalp Trading System For MT4 Long trade setup
The long trade will be opened with the old fashioned way. Our approach towards the indicator will simple. The price pattern should be synchronized with four distinct windows and you must be using the exact steps. Using the steps in a disorderly manner leads to losses.
Let’s now learn how we can ride a new bullish trend. The price has to break the trend line or major resistance. Or it can test a major support level before the bulls get in control of the asset. At the Damiani trade indicator, the green line will push above the white line. The blue momentum line in the second pane should cross above the reference line. The reference line can vary depending on the position of the asset. At the ADX, the blue line will cross over the red line and the sky blue line will go up.
The rise in the value of the sky value-line tells us the market is extremely volatile and the breakout can give us strong profit-taking the opportunity. Finally, we have to analyze data from the volume indicator. If the volume bar is green and big, we can open the long.
The SL is placed T stop dot. The T stop dot is blue. This indicator is very famous as it gives tight SL opportunities. For the take profit, it is set according to analytical data of the chart. Find the closed resistance and set the TP to that zone.
Volatility Scalp Trading System For MT4 Short trade setup
This strategy can be developed to trade with the trend. The trend trading method can give you a powerful solution to solving the problem of overtrading. Overtrading gets a big problem when investors ignore the long term momentum. The price will form a consolidated structure or a triangle like a pattern before it again moves down.
Before the final downward movement, the break will be noted with the strong bearish candle. The T stop indicator should be placing the red dot to a higher place where the rejection is spotted. At the Damiani indicator, we will be seeing a sharp fall in the green line. The green line will push below the white line indicating the price is ready for a strong downfall. The blue color signal line in the momentum indicator should also show the tendency to move south.
The slope must be negative and this gives us the idea the price is looking to favor the downtrend. At the ADX indicator, the crimson dashed line will push below the blue dashed line. The volatility will be high and it can be determined by taking the data from the sky blue line. The sky blue line should be rising suggesting the rise in volatility. Finally, it’s time to get data from the volume indicator.
At the volume indicator, the red bar should be present. The red bar tells us everything is in the right order to open the short. The SL will be set according to the T Stop dot. For the take profit, trailing Sl can be used. In case, you want to deploy a simple technique, find the SL by evaluating the nearest significantly low. The low of the price is the zone where the buyers may try to gain back the control.
Managing the trades
The system can be utilized in two unique formats. In the first format, the risk will be 1% and you are allowed to open trade in the counter-trend. The risk is very low since you are betting against the odds. When you love the idea of trend trading, you can risk 2-3%. But don’t expect to win every trade with the trend trading method.
Now and then, you will lose trade and this should not make you frustrated. The losses that you will be facing in each trade, is the learning curve. You have to remain focused and stay tuned with the complicated trade setups. The reversal trading technique can be improved to a great level just by studying the news. News analysis is called fundamental analysis. People ignore this part as they consider it is a very risky and lengthy process.
We are not asking or requesting you to learn fundamental analysis. It’s entirely up to you. However, those who are willing to consider this volatility edge as their prime system must sync it with the news. Those who don’t have news analysis skills should be not be opening any order on any major news. Opening new orders in the major news can be daunting but you have to stick to the core method. Try to be a disciplined person while using the volatility scalping system.
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