Scalping Gray Strategy For MT4
Table Of Contents:
- Scalping Gray Strategy For MT4
- The Scalping Gray Strategy For MT4 – Long positions
- The Scalping Gray Strategy For MT4 – Short positions
- Is the Scalping Gray Strategy 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 Scalping Gray Strategy For MT4 is a rather unique looking trading system. As he might have noticed, the template makes use of the gray color and the overall layout of the trading template is quite unique. We find that this creating system makes use of an optimal number of technical indicators. But at the same time, the price action is also quite clear.
There are about 5 technical indicators that are used in the scalping gray strategy. On the price chart, we have a five. Simple moving average. This is denoted by the white line that you see. We then have a custom indicator called the price channel signal indicator. This indicator is responsible for plotting the white and black dots on the price chart. These dots often coincide with the reversals in the price action.
The next indicator in the scalping gray strategy, is called the div stoch indicator. this indicator sets in the first sub window of the scalping gray trading template. This indicator is merely a histogram and has multiple levels shown on the indicator. It starts with the usual 20 and 80 levels that you can see in the regular stochastics oscillator. In some ways this customized indicator resembles that of typical histogram indicator.
In the second sub window of the scalping gray strategy we have another custom indicator called the 123 alerts. This indicator plots the histograms as well, but the histogram revolves around the zero line. When the histogram moves below the zero line you can often see that price action also starts to make a retracement to the downside. Quite often, the tops and bottoms in the price action coincides with the histogram reaching extreme levels.
In the final third sub window of the scalping gray strategy, we have the AFL winner indicator. This is once again, a custom indicator. Here too, the indicator makes use of the histogram which tends to move with the baseline of zero. Because of the fact that this is a custom indicator, not much is known on the inner workings of this trading indicator.
The above 5 indicators combined make up the scalping gray strategy. As you can see in the price chart, we have used the 15 minute chart time frame. However, there are no limits. This means that traders can experiment with this template and apply it on higher chart timeframes.
Let's now take a look at how you can trade long and short positions using this unique trading strategy called the scalping gray strategy for MT4.
The Scalping Gray Strategy For MT4 – Long positions
For long positions using the scalping gray strategy, the first thing the trader should look at is for price to make a retracement to the downside. Following this, you will often see that a black dot appears near the low. This suggests that the market has made a short-term bottom in the markets.
The next step is to wait for price action to close above the five period simple moving average. After you see this look to the remainder of the indicators to confirm the long position. As you can see in the above chart the div stoch indicator does not really offer much information. Therefore, move on to the next indicator. Here we need to see the histogram trading above the zero line.
Now, look to the final indicator which is the AFL winner indicator. This indicator needs to plot black histogram bars suggesting that the momentum is to the upside. When this is confirmed, you can then take a long position at market. Set your stop loss to the low that formed where the black dot appeared.
For your take profit levels, you can either choose a fixed risk to reward ratio. Alternately you can keep your position open until you see the opposite signal, namely the white dot appearing on the price chart. The second method is more applicable when there are strong trends in the market. There for a bit of discretion is required.
The Scalping Gray Strategy For MT4 – Short positions
For short positions using the scalping gray strategy, the first thing the trader should look at is for price to make a retracement to the upside. Following this, you will often see that a white dot appears near the high. This suggests that the market has made a short-term top in the markets.
The next step is to wait for price action to close below the five period simple moving average. After you see this look to the remainder of the indicators to confirm the short position. As you can see in the above chart the div stoch indicator does not really offer much information. Therefore, move on to the next indicator. Here we need to see the histogram trading below the zero line.
Now, look to the final indicator which is the AFL winner indicator. This indicator needs to plot white histogram bars suggesting that the momentum is to the downside. When this is confirmed, you can then take a short position at market. Set your stop loss to the high that formed where the white dot appeared.
For your take profit levels, you can either choose a fixed risk to reward ratio. Alternately you can keep your position open until you see the opposite signal, namely the black dot appearing on the price chart. The second method is more applicable when there are strong trends in the market. There for a bit of discretion is required.
Is the Scalping Gray Strategy For MT4 profitable?
Include, the scalping gray strategy is a rather unique trading system. But looking beyond the custom indicators and the customized template that comes with this trading strategy we find that this trading system does not quite offer much for traders.
The template that comes with this trading strategy is lightweight, so you can use this to monitor multiple instruments at the same time. The scalping grey strategy can be recommended for beginners as well because of the simplicity in the trading signals that come with this trading strategy.
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