Scalping System with Color Stochastic For MT4

Scalping System with Color Stochastic For MT4

The Scalping System with Color Stochastic For MT4 is a rather simple strategy that makes use of two stochastics indicators. In some ways, it feels like the color stochastics forex trading system is incomplete. As anyone might know, you also need to have trends in the market or some other identifier while trading.

FREE Scalping System with Color Stochastic

Download the FREE Scalping System with Color Stochastic for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!


The color stochastics forex trading system merely makes use of two different stochastics indicator settings. Buy and sell signals are generated as and when you see the blue and red lines appearing on the stochastics oscillator.

As a result, when it comes to actual trading signals, there are multiple ways that you can trade with this method. You might end up adding your own indicators on top of the two Stochastics oscillators that come with it.

The first stochastics oscillator is based on the 15, 3, 9, linear weighted moving average set to high and low prices. The second stochastics oscillator which sits at the very bottom of the screen makes use of the 30, 6, 18, linear weighted moving average set to closing prices.

As you can see, when you combine the above two indicators, it doesn’t quite make any sense. One would assume that that lower stochastics system might be making use of a higher time frame. This could potentially bring some confluence on the charts and allow for the muti chart time frame approach.

But this is lacking quite a bit. As mentioned earlier, there are different ways to trade with this method. In our approach, we will look at the simple buy and sell signals that are generated from both the stochastics oscillators.

The price charts are rather clean, however, when it comes to setting your take profit and stop loss levels, there is a lot of subjectivity involved. As a result, there are a few variables to consider when trading with the color stochastics scalping forex trading strategy.

Let’s take a look at how we can trade long and short positions in the market using the color stochastics forex trading system.

Color stochastics forex trading strategy – Long positions




For long positions, the first thing to look for is that price is trading near a low. This means that there should be evidence of a previous downtrend on the chart time frame you are trading. Once you see this, the Stochastics oscillator starts to print a green line.

This happens when the oscillator is in the oversold level. It indicates that price momentum is rising once again and therefore you should be ready for long positions. Wait for both the Stochastics oscillators to move out of the oversold level.

Following this, take a long position in the market. Look at the price chart and set your stop loss to the nearest pivot low point on the chart. Once you have your risk defined, the next step is to set your take profit level.

We recommend using at least a one to two risk reward set up. This will ensure that you are able to make more profits than losses. Continue watching the Stochastics oscillator. You can hold on to your position as long as both the stochastics oscillators remain the overbought level (plotting red lines). You can exit when the indicator moves out of the overbought levels.

Color stochastics forex trading strategy – Short positions




To trade short positions, the first thing to look for is that price is trading near a high. This means that there should be evidence of a previous uptrend on the chart time frame you are trading. Once you see this, the Stochastics oscillator starts to print a red line.

This happens when the oscillator is in the overbought level. It indicates that price momentum is falling once again and therefore you should be ready to take short positions. Wait for both the Stochastics oscillators to move out of the overbought levels.

Following this, take a short position in the market. Look at the price chart and set your stop loss to the nearest pivot high point on the chart. Once you have your risk defined, the next step is to set your take profit level.

We recommend using at least a one to two risk reward set up. This will ensure that you are able to make more profits than losses. Continue watching the Stochastics oscillator. You can hold on to your position as long as both the stochastics oscillators remain the oversold levels (plotting green lines). You can exit when the indicator moves out of the oversold levels.

Is the Color stochastics forex trading strategy good for you?


The color stochastics forex trading system is in a way a rather clean trading system. But it is terribly incomplete. Trading based on just two versions of the same indicator can be disastrous. The fact that the color stochastics uses two stochastics oscillators also goes to show that the developer of this forex trading system does not quite understand how the indicators work.

The trading strategy, due to the use of the indicators can be applied to any chart time frame. Buy and sell signals remain the same. One way to improve the color stochastics forex trading system is to spot divergence.

Since divergence is a powerful way of spotting short term corrections or reversals in the market, this can be a great way to trade with just the two versions of the stochastics oscillator.

We certainly do not recommend that forex beginner should use this trading system. This is merely due to the fact that you will have also have to make use of price action trading in order to figure out what is going on the markets.

We recommend adding moving averages or Bollinger bands to get a sense of the trend and the potential levels from which you can trade off. Because there are just two indicators, the template is light weight and you can apply this to multiple charts.

There are no alerts or pop ups which means that traders need to constantly keep hopping from one chart to another.

Download the complete system description and the files here:

FREE Scalping System with Color Stochastic

Download the FREE Scalping System with Color Stochastic for MT4.

To receive my email 100% sure: 
Put my email on your whitelist!

 

Partially Automated Trading Besides Your Day Job

Alerts In Real-Time When Divergences Occur

My Recommended MT4/MT5 Broker

About Me

I'm Mike Semlitsch the owner of PerfectTrendSystem.com. My trading career started in 2007. Since 2013 I have helped thousands of traders to take their trading to the next level. Many of them are now constantly profitable traders. 

The following performance was achieved by me while trading live in front of hundreds of my clients:

Connect With Me:  

Results From 5 Months!
This service starts soon! Be the first who get's notified when it begins!

This FREE Indicator Can Transform
Your Trading!

FREE Indicator + Telegram Group


Request the Ultimate Double Top/Bottom Indicator which is used by 10,000+ traders.