Traders Dynamic Index Strategy can be a little complicated if you’re not sure how to read the TDI. This indicator can use sound and visual bollinger bands forex scalping method. The indicator looks like it has a lot going on but once you understand how to read it you will see how it basically tells you everything you need to know. It gives you a powerful all in one punch.
Let’s break down the components of the TDI indicator. Two Blue lines which tend to contain all the others, are the volatility bands. They are very similar to Bollinger Bands. The Red line is called the Signal Line. It’s basically a Moving Average which will help identify a good entry setup as well as exit strategy.
The Yellow line is called the Market Base Line and it acts as a trend indicator. All the signals from the other lines will be traded only if the Yellow Master says it’s okay, so this line is very important. For scalping, enter long when the green line is above the red line and enter short when the red line is the above green line. Green cross which occurs close to the Yellow line. If you enter the trade before, it might be too soon. I tend to go with the more aggressive entry which I think is the TDI hidden secret. Green line to make a strong angle while breaking the blue volatility band.
Blue volatility line should be near 50. Enter trade when green line breaks blue volatility line. Exit trade as green line crosses blue volatility line in the opposite direction. This is the strategy that I usually use but I would recommend trying them both to see which one fits your trading style. I just gave you a complete breakdown on how to read and use the TDI, but before I go let’s sum it all up to make it easier to remember.
I hope that this indicator helps you catch more pips and help improve your trading. B minis on the Ninja Trading platform, is the market makers method trap zones exclusive to MT4 only? I can email it to you. Strategy Overview The idea behind this scalping strategy is to catch the short wave retracements that take place when the market reaches a peak overbought or oversold state.
It is a low yielding strategy. That means the profits are not huge but they are consistent when the system is correctly applied. However, it can be adapted to work at higher timescales if you choose. A key element of this strategy is that it spreads risk across a number of trades to create a scalp sequence. This averaging out is essential in restricting drawdowns and creating incremental profits. Unlike other scalping systems, trades are allowed to drawdown.
Many scalping system abandon a trade as soon as it enters a loss. However because the exposure is spread among multiple trades the impact of drawdown on the account’s balance is limited. Because of the need to allow trades to enter a loss, it is not advisable to use this method with aggressive leverage. That is, there is never more than one lot of exposure at any time. Typically, the exposure is spread over 100 trades. However, with the entry signal I use there are rarely more than 10 trades open at once.
It averages around 5 trades per day and the average total profit is 25. You can adjust the setup for more risk or less risk as required. Entry Signal I use a combined entry signal that detects high probability turning points. To do this I use a combination of the Bollinger band lines and by examining the price action at each bar. Two conditions have to be met to trigger a market entry. The first condition is that the price has to be at an extremity marked as one of the outer Bollinger band lines. This input comes from examining the recent candle activity.
For example for a buy signal, the price has to start retracing back up towards the center line of the band. For a sell signal, the price starts to retrace downwards. Essential for anyone serious about making money by scalping. It shows by example how to scalp trends, retracements and candle patterns as well as how to manage risk. It shows how to avoid the mistakes that many new scalp traders fall into.
If these conditions are met the trade is entered provided the total open volume is not exceeded. Figure 1 shows a typical scalp sequence. 10k so the exposure is fairly low. This is not a frenetic, high turnover scalping system. Using these entry signals there are rarely more than around 10 potential trades per day.
The stop is set at no greater than half of the width of the Bollinger band. So for example, if the bandwidth is 20 pips, the stop is placed half way at 10 pips. The take profit amount is also set depending on the volatility. 1, I place a market buy to open order after the price descends to the lower Bollinger and after the first bar starts to retrace back towards the center line. 2 the price moves in the direction of the scalp. 3, the price pulls back but reverses again.