Price Action Scalping with I-targets Strategy For MT4
Table Of Contents:
- Price Action Scalping with I-targets Strategy For MT4
- Price action scalping forex trading system – Long positions
- Price action scalping forex trading system – Short positions
- Is the Price action scalping forex trading system good for you?
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 Price Action Scalping with I-targets Strategy For MT4 is a very simple forex scalping strategy. It makes use of just three indicators and leaves your charts clean. Price action traders will certainly love trading using the price action scalping forex trading system. Due to its light weight and only a few indicators, traders need to be adept in understanding the price action trading patterns.
Therefore, we do not recommend the price action scalping forex trading system for everyone. Beginners should be especially wary about using this trading system especially if you do not have much experience on what is price action or the concepts behind it. There are a few indicators in the forex scalping trading system, but these are merely to assist you and to validate your bias. Note that most of the trading happens based out of the price chart itself. Therefore, the indicators in the sub window are only secondary.
On the main price chart, you find the #i-Targets indicator. This is the indicator that plots the horizontal lines on the price chart. You can use these lines to book your profits. They work somewhat similar to the intraday pivot levels that we get to see.
In the sub window, there are three other indicators. These are the beta and gamma indicators with the last one being a combination of the two. These indicators are technically responsible for indicating when the trend is changing and depicts the momentum in the price chart.
As is the case with all custom indicators, there is no real proof that they work as they are supposed to be. Therefore, in this trading system article, we will use the three indicators only as a validation but the primary basis for trading is based on the evolving patterns in the price chart and their relation to the horizontal lines that are plotted.
Price action scalping forex trading system – Long positions
When trading long positions using the price action scalping forex trading system, we begin with looking at the price chart itself. We need to see price trading at one of the lower horizontal lines plotted on the price chart. This is where there is a high probability of price reversing direction.
In the above long position example, you can see the three candlestick reversal. In this method, we have price making an extreme low following by the third candlestick posting a higher high than the middle candlestick. This is a well known reversal pattern. When you identify such a reversal pattern, take a long position in the market.
Set your stop loss to the low that formed. Ideally, this low should be below one of the lower horizontal lines also known as the lower support levels. For take profit, you can set it to the mid line which is white and then one of the upper resistance levels.
For validation, you might want to look into the three indicators in the sub window. But remember that these oscillators do not quite work as expected. So at times, you might find them to be lagging. However, an ideal situation is when you have the oscillators also suggesting that the uptrend is taking shape and that the momentum is rising.
Sometimes, you might find that the oscillators might turn red in the middle of the trade. This is where you need to ensure that your analysis is right. It is also recommended that you move your stops to break even so you do not end up giving back the profits that might have come along your way already.
Price action scalping forex trading system – Short positions
Short positions using the price action scalping techniques follows the same ideas outlined when taking a long position. The primary driver behind the trading signal comes from price action itself and how it relates to the horizontal lines that are plotted on the price chart. Only after this can you look to the technical indicators that can validate your bias. As mentioned earlier, due to the fact that the indicators are highly customized, there is no way of telling how good they are.
Look for reversal patterns that might appear near one of the upper levels. In the above example you can see price making a peak following immediately by a decline in the momentum leading to a price decline as well. Open a short position in the market on the next candlestick session.
At this point, set your stop loss to the recent high while using the lower price levels as potential take profit areas. You can start with the mid line or the pivot line (in white) and one of the lower support levels. Move your stops to break even after the first target level is hit. A good way to further validate your bias is to have the three indicators also turning red. This suggests that the momentum is rising to the downside. Bear in mind that you should manage you positions actively as the indicators might turn to red and could signal a potential reversal in the direction of price.
Is the Price action scalping forex trading system good for you?
The price action scalping forex trading system disappoints quite a bit. While the title might suggest that this is a trading system that can assist you with price action trading, it does the opposite. Traders should therefore bear this mind before trying out this trading system. The highly customized technical indicators don’t really offer much of an edge.
But having said that, the price action scalping forex trading system is suited for intermediate to professional forex traders. If you are strong in your price action trading concepts, then you can use this trading system. But this also raises the question of why you would want to make use of an incomplete price action scalping system.
In conclusion the price action scalping forex trading system is something that you should avoid. It doesn’t offer much information for traders and the subjectivity can be a put off for many.
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