Precision Trend Scalping Strategy For MT4

Precision Trend Scalping Strategy For MT4

The Precision Trend Scalping Strategy For MT4, as the name suggests is a forex trading system that works on a trend following concept. However, the aspect of whether this is a precision trend is left once judgment. As you can clearly see from the price charts, there is an obvious drawback with the precision trend scalping strategy.

As you might have observed, the precision trend trading strategy focuses only on the price trends. This means that when the market is moving in a sideways range, there is a very good chance that you would be prone to false signals. Unfortunately, while trend following strategies such as the precision trend scalping strategy works good during trending markets, they fail when the markets are in a sideways range. Traders would know that the markets move in a sideways range more often rather than moving in a trend.

Still, a trend following strategy is one of the most popular ways of trading. This is because there is a general belief among the trading community that the trend is your friend. As a result, the logic is that you cannot really go wrong when you trade with the trend following strategy. But to determine the success with the trend following strategy, it basically depends on how early you can take a position into the trend.


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Most of the times, due to the indicators that are used a trend following strategy can show you lagging signals. This means that by the time you take up a position in the market, you would end up having a position quite late into the trend. This can be risky as it increases the odds of the markets turning around. There for a tradeoff needs to be found in order to find the optimal point of entry when using a trend following strategy.

The precision trend scalping strategy makes use of five indicators only. All of these indicators are highly customized indicators. The first indicator is the colored candles indicator. As you can see, these colored candles indicator is responsible for plotting the direction in the markets with the blue and the red colored candles.

The next indicator is called the high low targets followed by the binary Viper indicator. These are customized indicators and we do not have much information on how they work. However, you can see that we have a trend filter that can show you when the market is moving up and when the market is moving down. The up and down arrows usually coincide with the swing high and swing low point in the markets.

A trend following strategy is never complete without an oscillator in order to time your trades. This is the case with the precision trend scalping strategy. In the only oscillator, we have a custom indicator called the trend power indicator. This indicator simply plots the histogram bars which changes colors and determines the direction of the price. Traders can make use of the signals from this oscillator in order to time the entry or exit off their trades when using the precision trend scalping strategy.


A combination of these custom indicators gives you what is called the precision trend scalping strategy. This trading system can be applied on the 15 minute chart timeframe. However, you can also extend this onto the one hour charts if you wish.

Let's now take a look at how you can trade long and short positions using the Precision trend scalping strategy for MT4.



The Precision Trend Scalping Strategy For MT4 – Long positions




In order to take a long position using the precision trend scalping strategy, we should wait for the uptrend to begin. This can be identified when you see the price moving above the trend filter line. Once price settles above this line, you will see that it will start to plot the dots below the price low. At the same time, you will see that the candles also change color to dark blue.

Identify the recent swing high and set your pending long order at this point. Price usually makes a retracement before breaking out from this swing high and thus triggering your long position. For your stop loss set it to the recent swing low.

You can either use a fixed risk to reward ratio for your take profit level or simply trail your stop loss of few pips below the blue dots that are plotted. This is purely subjective and depends on how the markets are behaving. The second method allows you to take maximum profits when the market is in a strong trend. Last but not the least, look to the trend power indicator in the sub window and confirm that the market is moving to the upside.



The Precision Trend Scalping Strategy For MT4 – Short positions




In order to take a short position using the precision trend scalping strategy, we should wait for the down trend to begin. This can be identified when you see the price moving below the trend filter line. Once price settles below this line, you will see that it will start to plot the dots above the price low. At the same time, you will see that the candles also change color to dark red.

Identify the recent swing low and set your pending short order at this point. Price usually makes a retracement before breaking out from this swing low and thus triggering your short position. For your stop loss, set it to the recent swing high.

You can either use a fixed risk to reward ratio for your take profit level or simply trail your stop loss of few pips below the red dots that are plotted. This is purely subjective and depends on how the markets are behaving. The second method allows you to take maximum profits when the market is in a strong trend. Last but not the least, look to the trend power indicator in the sub window and confirm that the market is moving to the downside.



Is the Precision Trend Scalping Strategy For MT4 profitable?


Conclusion, the precision trend scalping strategy is a fairly decent trend following trading system. However, as with all trend following systems, there is a risk of losing trades when the market is in a sideways range. Therefore traders need to be aware of such instances when trading with the precision trend scalping strategy.

Download the complete system description and the files here:

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