144# Forex Forecast Trading System
A true scalping system
Submit by Joy22 30/11/2011
The scalping system we are about to show you is very flexible, it can be traded on any time frame from 1 Minute to 1 Day. My personal favorites are 5 Minute and 1 Hour charts as they seem to provide the best setups, I scalping the 5 Minutes charts and Plan longer term trades on the 1 Hour charts throughout the week.
Time Frame 5 min.
The system will work on any pairs at all but I suggest scalping the pairs with the lowest spread and mainly sticking to the major pairs for trading the longer term time frames.
On your chart you will see 5 orange lines and 2
pink lines, these lines are for gauging the trend. Below are 2 examples of a normal trend up and one of no trend at all.
When the pink lines cross the orange lines and they widen we have a trend in progress, the wider the lines the stronger the trend.
When the orange lines are close together and the pink lines are going from one side to the other there is no trend direction.
When a pullback is occurring the 2 pink lines often move closer together but do not cross the orange lines.
The Indicator that is at the bottom of the chart is
the stochastic indicator set to 9,3,3, this shows us with reliable accuracy when price is over sold or over bought. At the top of the indicator is an 80 line and at the bottom is a 20 line.
This indicator is out trigger for the trade!
In a downtrend as price makes a pullback to the orange Gamma lines and the pink lines come closer together we watch the blue line of the stochastic indicator for it to go over the 80 line and then back again, as soon as it crosses back over the 80 line we take a short trade.
In a sell position it is the opposite, once price
is in an uptrend we look for a pull back to the
pink lines and wait for stochastic to cross the 20 line and cross it back again to enter a buy position. See examples and more see pdf in attach
Share your opinion, can help everyone to understand the forex strategy.