JMO Pivot Scalping System For MT4
Table Of Contents:
- JMO Pivot Scalping System For MT4
- The JMO Pivot Scalping System For MT4 – Long positions
- The JMO Pivot Scalping System For MT4 – Short positions
- Is the JMO Pivot Scalping System For MT4 profitable?
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 JMO Pivot Scalping System For MT4 is a forex trading system that makes use of an oscillator and the intraday pivot levels. As you could guess already, this trading system makes use of the overbought and the oversold conditions in the market by making use of the oscillator and correlating the same when prices trading near one of the pivot levels.
There are only two indicators that are used in the JMO pivot scalping strategy. The first is the intraday pivot level indicator which you can see on the price chart. The second indicator is the custom JMO oscillator which you see in the sub window.
The basic concept of trading with these two indicators is that when price action is nearing one of the pivot levels on the intraday chart time frames, if the market condition is overbought or oversold depending on how the JMO oscillator is positioned, you can take a long or short position at the market.
This trading system works best only on the 15 minute chart timeframe. Also, we cannot guarantee the probability of success when trading with such a setup. There are times when you will see the markets reversing direction and this could lead to potentially losing trades.
Therefore, if you want to trade with the JMO pivot scalping system, you need to pay attention to your risk management techniques so that you do not end up losing money when using this trading system.
Let's now take a look at how you can trade long and short positions using the JMO pivot scalping strategy for MT4.
The JMO Pivot Scalping System For MT4 – Long positions
To take a long position using the JMO pivot scalping strategy, you need to wait for price action to rise to the daily pivot level or to rebound back to the pivot level. Once you see this happening, and you can notice that price action is reversing near the pivot level, you should then look to the JMO oscillator in the sub window.
When the price action reversal coincides with the reversal in the JMO oscillator in the sub window, and you see that the JMO oscillator is moving out from the oversold levels, you can take a long position at market. Set your stop loss to the recent low that formed near the daily pivot level. You can set your take profit to any of the resistance levels that you see to the downside.
Due to the nature of the simplicity of the trades, we recommend the trader should also focus on the price action reversal patterns. This will ensure that your trading bias gains more confidence and that you are able to make more consistently profitable trades using the JMO pivot scalping strategy.
We also recommend the trader should look at the price action patterns on the daily chart in order to identify the long term buyers in the trend and then trade in the same direction on the short term chart timeframe.
The JMO Pivot Scalping System For MT4 – Short positions
To take a short position using the JMO pivot scalping strategy, you need to wait for price action to fall to the daily pivot level or to rebound back to the pivot level. Once you see this happening, and you can notice that price action is reversing near the pivot level you should then look to the JMO oscillator in the sub window.
When the price action reversal coincides with the reversal in the JMO oscillator in the sub window, and you see that the JMO oscillator is moving out from the overbought levels, you can take a short position at market. Set your stop loss to the recent high that formed near the daily pivot level. You can set your take profit to any of the support levels that you see to the downside.
Due to the nature of the simplicity of the trades, we recommend the trader should also focus on the price action reversal patterns. This will ensure that your trading bias gains more confidence and that you are able to make more consistently profitable trades using the JMO pivot scalping strategy.
We also recommend the trader should look at the price action patterns on the daily chart in order to identify the long term buyers in the trend and then trade in the same direction on the short term chart timeframe.
Is the JMO Pivot Scalping System For MT4 profitable?
The JMO pivot scalping strategy is a trading system that is too simple in some ways. While we have always said that a complex trading system does not automatically guarantee you results, at the same time using a rather simple forex trading system also doesn't guarantee you profits all the time. This is the case with the JMO pivot scalping strategy.
If you really look at this trading system, the only indicator that is at work is the JMO oscillator. This oscillator is in the sub window and as you can see it moves across the overbought and oversold levels. And if you observe closely, this indicator is no different than the other regular standard indicators such as the relative strength index indicator or the stochastics oscillator or even the momentum indicator or the famous moving average convergence divergence or the MACD indicator.
Therefore, what you're left with is just a custom indicator for which there isn't much information known and a bunch of pivot levels on the intraday chart timeframes. As a result, you can simply replace the custom JMO oscillator with just about any regular standard indicator on your trading terminal and you will see basically the same results.
Trading with the JMO pivot scalping system strategy requires a bit of experience in understanding the price action and the trends. Therefore, we do not recommend this for beginners who do not have much experience in the markets. The trading template that comes with this trading strategy is obviously lightweight because of the fact that there are only two indicators that are used.
Download the complete system description and the files here:
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