The Trendline scalper trading system, is a scalping strategy that depends on the trend of the forex market. It is best used on the 1 minute timeframe. Using this timeframe the trader is able to determine the volatility of the market. When the market becomes too volatile it may be good to some traders while it may also be a disaster to others.it all depends on how you place and close your trades especially during trading.
The system of trading is designed in such a manner as to give best returns when used to trade the following currency pairs: the EUR/USD, the GBP/USD and the AUD/USD. These three currency pairs are very volatile and are also trades more in the forex market. They are the best currencies to choose when you decide to trade by scalping. However should you decide to choose other currency pairs, then their spread should not exceed 15. A spread of 15 is still considered to be tight but if the spread is lower the better. When the spread is small, any trade opened don’t have a large loss. When trades are opened they have a negative figure that is mainly due to the spread and the market has to move by more pips than the number of pips of the spread for you to start making any profit. Therefore when the spread is too large, most of the market movement will be for covering the spread instead of giving you profits.
The Trendline scalper trading system, incorporates the use of several indicators namely: the treadle indicator and the stochastic (5, 3,3).
Fig. showing the indicatores in the Trendline scalper trading system tempalte.
There are sometimes troubles experienced with this trading system since it has no specific template. You actually use the trendline provided on the MT4 platform. You click on the indicator and the click on the point you want the trend line to start to the point that you want the line to get to.
The stochastic oscillator also come with the MT4 plat form so there is nothing to download. You just have to load the two indicators on the chart and start using them to trade.
You may also use some arrow as shown in the above chart so indicate the level to which the markets retraced to.
Placing and exiting form trades using the Trendline scalper trading system
Placing the sell orders:
The trendline that you have drawn have to be on a downward direction showing a downward trend. Watch till the market prices retraces to the trend line but it must not cross the trend line. Then on the next bar that forms, open a sell position.
Place your stop loss at about 5 to 10 pips above the trend line. The profits should be closed when the market moves by a maximum of 10 pips.
Fig. opening and closing a sell order.
Placing the buy orders:
The trendline that you have drawn have to be on an upward direction showing an uptrend. Watch till the market prices retraces to the trend line but it must not cross the trend line. Then on the next bar that forms, open a buy position.
Place your stop loss at about 5 to 10 pips below the trend line. The profits should be closed when the market moves by a maximum of 10 pips.
Open demo account to test this system.
Download Free Trendline Scalper Trading System