DZ NMA ATR Scalping Strategy For MT4
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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 DZ NMA ATR Scalping Strategy For MT4, as the name suggests is a forex scalping system. This trading system makes use of some unique indicators. But having said that, this trading system doesn't quite give you the edge. In other words, the DZ NMA ATR scalping strategy is not a holy grail, but just about any other trading system that you would come across.
However, if you are a day trader or a scalper, then this is almost the perfect forex trading strategy for you. The main reason behind this is the fact that due to the indicators used, this trading system can easily allow you to scalp the short term markets.
If you get your risk management right and the markets are volatile enough, then you would be able to make consistent profits, after spending a significant amount of time in practicing with this trading strategy.
Let's now take a look at the indicators that are used in the DZ NMA ATR scalping strategy. Firstly, on the price chart, we have the TD point reversal indicator. This indicator is responsible for plotting the orange and blue dots on the price chart. The basic idea behind this indicator is to signal potential turning points in price action.
There isn't much you can do in terms of customization when using the DZ NMA ATR scalping strategy. Next, we have the Step MA indicator. As the name indicates, this is a type of moving average which instead of plotting a smooth line, shows the increase and decrease in the average price by means of a step.
There are quite a few settings that need to be used if you want to configure this indicator even further. But if you are beginner, we recommend that you leave the settings as is and only go on to change the indicator's settings once you are confident with the current set up.
This will enable you to further understand how this indicator works and how it can help you.
Next, we have the SDX pivots indicator. This is an indicator that is commonly used in many short term intraday systems. The pivots indicator merely plot the pivot levels on the price chart. These price levels can be used as potential take profit levels for your price.
One of the drawbacks with the default template settings is that the pivots indicator uses all the pivot levels available. This ends up in creating a very cluttered chart. Therefore, traders should stick to just one pivot level such as the daily or the monthly and disable the rest. It will ensure that you are able to view the price action while also ensuring that the price charts do not get too cluttered.
In the sub window of the DZ NMA ATR scalping strategy, we have the dz ma atr indicator. This is a custom indicator, which also requires a dll file. The dll file which comes with the folder for this indicator needs to be placed in the libraries folder of your MQL4 installation. Only then will the indicator work.
This oscillator basically has a thick red line which is the signal line followed by the thin white line. The two lines combined act like a regular moving average. Long positions can be taken when the markets are bullish when you see the red line above the white line.
Likewise, short positions can be taken when the market is bearish, represented by the red line trading below the white line.
Let's now go into further details of how you can trade with the DZ NMA ATR scalping strategy.
The DZ NMA ATR Scalping Strategy For MT4 – Long positions
For long positions using the DZ NMA ATR scalping strategy, start by watching price to close above the step MA indicator. At this time, you should also see the custom oscillator showing bullish market conditions. This is when the red line trades above the white line.
Following the above market conditions, you can now take a long position at market. For setting your stop loss, look to the most recent swing low not more than five bars ago. Then using the pivot level indicator, you can set your take profit accordingly.
Always bear in mind to trade only when you see that the risk and reward ratio is at least 1:3.
The DZ NMA ATR Scalping Strategy For MT4 – Short positions
For short positions using the DZ NMA ATR scalping strategy, start by watching price to close below the step MA indicator. At this time, you should also see the custom oscillator showing bearish market conditions. This is when the red line trades below the white line.
Following the above market conditions, you can now take a short position at market. For setting your stop loss, look to the most recent swing high not more than five bars ago. Then using the pivot level indicator, you can set your take profit accordingly.
Always bear in mind to trade only when you see that the risk and reward ratio is at least 1:3.
Is the DZ NMA ATR Scalping Strategy For MT4 effective for trading forex?
In conclusion, the DZ NMA ATR scalping strategy is a very good scalping system. But this puts the swing traders or regular traders out of reach because you need to be tuned to your charts. However, if you are able to capture good trades, then you can just set your take profit and stop loss levels.
No further monitoring of the trades are required with this method. The template that comes with the DZ NMA ATR scalping strategy is light weight. But due to the fact that it uses a custom dll file, we do not recommend using this trading template on more than three instruments at any time.
Using the template on many charts can only lead to your MT4 slowing down. Overall, the DZ NMA ATR scalping strategy is a very good trading system that both beginners and experienced traders will find it interesting to trade with.
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