The Rockwell scalping system is among the best strategies to use for scalping. It was developed in 2015 but it still proves to be of a great value to scalpers to date. It is simple to use and recommended for beginners in Forex trading.
It is best used to trade using the 5 minutes to 15 minutes timeframes. It is designed to be used to trade the major currency pairs and mainly the EUR/USD and GBP/USD currency pairs. When using the trading strategy, you should choose to use the currency pairs with the least spread possible.
Fig.1. Rockwell Scalping System.
It is a trend following strategy that is based on the Laguerre indicator and SSL. In addition to these two indicators the scalping strategy also uses the delta trend indicator.
How the different indicators used in the this scalping system work
The Rockwell Scalping System incorporates different indicators and each of the indicators used contributes to the efficiency of the system. It is therefore necessary to understand how the indicators work so that you will be able to interpret them correctly.
- The Laguerre indicator
The Laguerre indicator is displayed on a separate chart below the main trading chart. It mainly shows the trend of the market prices. It forms a line that oscillates about two levels that are shown by horizontal yellow lines. The yellow lines are positioned at the 0.3 and the 0.7 levels.
When the white line gets below the 0.3 line the trader should be prepared to place a buy when the line crosses the 0.3 level moving upwards. Likewise, when the white line crosses the 0.7 line, the trader should be prepared for a sell when the line crosses the 0.7 level moving downwards. But the signals must correspond to the signals of the rest of the indicators.
The SSL indicator is also a trend indicator and it is displayed on the main trading chart. It forms a white dash line that follows the trend of the market prices. When the line gets below the candle sticks, the trader should be ready to buy and when the line gets above the candlestick, the trader should be ready to place a sell. But the signal must correspond to the signals of the rest of the indicators.
- Delta trend indicator
This s the most crucial indicator in this scalping system. It is the indicator that actually tells the trader whether to trade or not. It is responsible for generating arrows on the main trading chart. It generates red and blue arrows.
The red arrow is a sell signal while the blue arrow is a buy signal. The trader should place his or her orders following the color of the generated arrow.
- Heiken Ashi
The Heiken Ashi indicator changes the color of the candlesticks being formed according to the direction of the trend of the market prices. When the trend is upwards, the candlesticks are green and when the trend is downwards, the candlesticks are red.
Rules to follow when trading
- Placing a buy order
Look for: Blue arrow, laguerre indicator below the 0.3 level, price is above the SSL and Heiken Ashi is green.
- Placing a sell order
Look for: red arrow, laguerre indicator above the 0.7 level, price is below the SSL and Heiken Ashi is red.
Fig.2. Placing orders using the Rockwell Scalping System.
Exiting the orders
The trader should set stops at 10- 15 pips or close the orders when a negative signal is given by any of the indicators (the trader should not wait for the opposite signals to be similar to all the indicators).
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