191# LineX Scalping Forex Trading system
Submit by Ozzy (Written by....)
The approach of this scalping trading system does not care which direction the price wants to move, it is more concerned about making a min. of 40 pips per day from the online forex market trading.
When using this forex scalping software the concept is; your success is not in the number of pips you make but in the volume you entered in.
Other attachments that come with this manual are;
1. Continuous automatic pivot calculator (Which works on metatrader platforms only).
2. An average forex daily range calculator, Average weekly range calculator and Average monthly range currency calculator (Also works on metatrader platforms only).
For the range forex calculators, I have already done my research to discover the currency pairs this trading system work with. (you may use it to research more on your own).
The currency forex pairs this scalper system work with are;
* AUD /USD (NORMAL SPEED)
* EUR / USD (NORMAL SPEED)
* AUD / NZD (LIGHTNING SPEED)
* AUD / CAD (LIGHTNING SPEED)
Fig. 1 A Metatrader Platform Screenshots
The Above is an EUR / USD 4 hours fx Chart on metatrader platform Nov/Dec 2008.
THE ONLINE FOREX STRATEGY
Pick the vertical line from the fx tool bar and demarcate the previous day from the present day make sure the line shows the present day's first candlestick at 00:00 Hours.
Pick the horizontal line from the tool bar and divide the first candle of the present day into two. Call this line; line X
Count 40 pips above line X and draw another horizontal line exactly 40 pips above line X and call this line; line X 1.
Count another 40pips above line X 1 and draw your horizontal line X 2 exactly 40 pips above line X 1.
Count 40pips below line X and draw a horizontal line exactly 40 pips below line X, call this line; line X 3.
Count another 40pips below line X 3 and draw a horizontal line exactly 40 pips below line X 3.
Your forex trading chart should look like this;
Line X is the starting point, allow price to dance between line X 1 & X 3 until it picks its direction for the day.
Set your buy stop on line X 1's price value, your take fx profit must be at line X 2, stop loss must be at line X4.
Set your sell stop on line X 3's price value, your take profit must be at line X 4, stop loss must be at line X2.
- Price could trigger your buy order and hit your take profit of 40pips.
- Price could trigger your sell forex order and hit your take profit of 40 pips.
- Price could trigger both your buy order and your sell order, hit both take profit zones, giving you a profit of 80pips.
- Price could hit your buy order and not reach your take profit, come back downwards 80 pips to hit your sell fx order and give you a loss of 80pips.
- Price could hit your sell order and not reach your take forex profit, come back upwards 80pips to hit your buy order and give you a loss of 80 pips.
Instance 4 and 5 happens around thrice a month in the currency pairs this system works with.
To reduce the number of Instance 4 and five in a month, repeat the pending orders explained above immediately you take your first profit for the day making the triggered take profit your next starting point. That is your line X.
With this system, you can catch 40 pips out of every 81pips price movement no matter the direction it goes. But let's just say 90pips to be on the safe side, 90 pips was the criteria I used when doing my research, price can have up trends for three months, moving thousands of pips upwards or downwards.
Once the direction has started these pairs find it difficult moving 80 pips in the opposite direction in the same day.
Consequently, if the price moves 1000pips upward or downwards in a month, you'll have the chance of catching almost 500 pips during such a month.
If you will use this system you need to rule out greed. Below is the blue print for entering positions when using this system;
The Forex broker Account below starts with 400USD and after 15 Trades became 4,440USD. Please stick to the rules of this forex system. Don't be too much in a hurry.
Trade $400 USD
1. $80 USD (0.2) LOTS
2. $80 USD (0.2) LOTS
3. $80 USD (0.2) LOTS
4. $120 USD (0.3) LOTS
5. $120 USD (0.3) LOTS
1. $160 USD (0.4) LOTS
2. $16 0USD (0.4) LOTS
3. $200 USD (0.5) LOTS
4. $240 USD (0.6) LOTS
5. $280 USD (0.7) LOTS
1. $360 USD (0.9) LOTS
2. $400 USD (1.0) LOTS
3. $480 USD (1.2) LOTS
4. $600 USD (1.5) LOTS
5. $680 USD (1.7) LOTS
You are expected to use half of your buying power in setting both forex trades. This enables you to enter a hedge when instance 4 and 5 above occurs.
Never wait for price to cut X 1 or X 3 and use all your buying power .
The above blue print does not guarantee that you'll win 15 Trades consecutively; it is a guide to help you when entering positions.
In the instance that you decided to follow price by setting another trade, making your first take profit of the day your point X then repeating the procedure, such trades usually last till the following day.
What I do
I reset the trades the following day by determining my first candle for the present day, delete the inactive pending orders of yesterday and take my profit from the present running trade as set yesterday.
Shift the stop loss of yesterday's trade to be the same as today's pending order counterpart.
Instances where you see a reversal pattern you can close yesterday's trade immediately.
If it is a continuation pattern, that's double profits for you today
If you don't understand how to read charts, then just leave it set along with today's trade.
Share your opinion, can help everyone to understand the forex strategy.