This is the ultimate scalping strategy for the ECN accounts brokers. The best currency pair to use with this trading system is the GBP/JPY. Then you have to use timeframes lower than 5M for better performance. When you use the lower timeframes, even the slightest market movement becomes more visible. According to broker that you have opened your account with, you can choose to trade other currencies but ensure that their spread is below 0.0002 pips. For better market evaluation you should use candlesticks instead of the bar charts in which the template comes with; so you have to change.
The Bollinger Band scalp GBP/JPY Trading system consists of three main indicators. These indicators are mainly band indicators and they are all Bollinger Band Indicators of period 50. The indicators are distinguished using different colors; one is red, the other orange and the other yellow.
Fig.the Bollinger Band scalp GBP/JPY Trading system template.
From the above chart, it is clear that the that alla the three banbs have only one middle line. The middle line is in the same color as that of the outer Bollinger Band.
When should you sell or buy when using the Bollinger Band scalp GBP/JPY Trading system
Selling: When using this trading strategy, you wait for the market levels to rise. When the prices goes past the upper line of the red Bollinger Band tending towards the orange, the trader should anticipate the prices to retrace. Immediately there is a start of the retracement you should place a sell order to benefit from this retracement. If the prices cross this red line and continues to rise even past the orange line the better. Just wait for the moment the trade starts to retrace.
Fig.Opening and closing trades using the Bollinger Band scalp GBP/JPY Trading system
Buying: When using this trading strategy, you have to wait for the market price levels to reduce. When the prices goes past the yellow middle line tending towards the lower red line, the trader should anticipate the prices to retrace up. Immediately there is a start of the retracement you should place a sell order to benefit from this retracement. If the prices cross this red line and continues to fall even past the orange line the better. Just wait for the moment the trade starts to retrace.
But mostly the market will hardly get past the lower red line. When it hits the yellow middle line the prices will rise even if it is for a short level.
Closing the orders
Once you place your orders don’t leave the market be there to watch. Remember this trading system is only viable for scalping not long term trading.
For the profits you should close the order when the market moves at most 10 pips to you favor. If you wait for it too much anticipating the profits will increase then you may end up getting losses.
However when you open a trade and you notice that you didn’t anticipate right, you may employ to ways to close the loss. You may opt to close the order depending on the loss you have made or the time the order has been in the market. You may also decide to use very tight stop losses since the timeframe you are trading with is also extremely tight.
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