Profitable Scalping on Tick Charts
you talk about placing ADX 14 and DMI 14 in tick chart, how do i go about putting this on the tick chart..pls i want to know how, have a niece time
Thanks for the share..Trading on the tick chart I guess is very risky. Do you have any performance results that you can share?
I personally do not suggest any trades to be taken on timeframes below 15 min. chart.
Thanks for the share..Trading on the tick chart I guess is very risky. Do you have any performance results that you can share?I personally do not suggest any trades to be taken on timeframes below 15 min. chart.
I make my living trading off the 1m charts. I think trading with 15m or 1hr or more is far too risky. But that’s the thing about trading, everyone has to find a style they’re comfortable with. I would never say trading a 1hr chart doesn’t work because it does work for some people it that’s they’re style. It doesn’t work for me and I don’t have the stomach to trade longer timef
I normally trade the 1m charts and this thread has me interested in looking at tick charts. However, I’m having trouble find the indicators that bossxero mentioned. Can anyone help
I make my living trading off the 1m charts. I think trading with 15m or 1hr or more is far too risky. But that’s the thing about trading, everyone has to find a style they’re comfortable with. I would never say trading a 1hr chart doesn’t work because it does work for some people it that’s they’re style. It doesn’t work for me and I don’t have the stomach to trade longer timef
Thanks Max99 for the honest reply..Can you tell me the strategy that you are using on 1 min chart..?
Please do that only if you are comfortable sharing.
Hi Max,care to share how you trade off 1 min chart?
I make my living trading off the 1m charts. I think trading with 15m or 1hr or more is far too risky. But that’s the thing about trading, everyone has to find a style they’re comfortable with. I would never say trading a 1hr chart doesn’t work because it does work for some people it that’s they’re style. It doesn’t work for me and I don’t have the stomach to trade longer timef
I make my living trading off the 1m charts. I think trading with 15m or 1hr or more is far too risky. But that’s the thing about trading, everyone has to find a style they’re comfortable with. I would never say trading a 1hr chart doesn’t work because it does work for some people it that’s they’re style. It doesn’t work for me and I don’t have the stomach to trade longer timef
Can you please share scalping system with us for that one minute chart as I just don't have any success with it. Like you I can't wait an hour only to find out I was wrong.
Hi, very interesting reading. I was just wondering if I could contact you sometime and if you could possibly help me to get started with the scalping as described by you? Much appreciated. Regards Peter
For this scalping strategy to work, you will need to have access to Tick Charts on Metatrader. By default you cannot have this type of chart but there are 2 tools which you can download from the PIP bar thread that should provide you with the tick charts. Normally, most brokers do not provide tick charts but some do, so in this case, you will not need any additional tool as you will have access to the charts from the Broker Instrument list itself. We will be working with the EUR/USD as it has the lowest spread of all. Also, spread should be lower that 2pips for the strategy to be profitable on the long run. Place the following indicators on the tick chart with these settings: ADX (14)DMI (14) And place these indicators on a normal 1min bar chart (same pair): Damiani signal/noise (on this forum, just search)Momentum (14)ADX (14), optional What we should be doing... We will be using the tick charts to identify surges in trading volume. This happens all the time. So when this happen, we will try to take advantage of these surges to make a few pips. Our main filter for this strategy is the damiani indicator. If the damiani says 'No Trade', then we will not be trading even if the trade looks 'delicious'... First Steps We will first look at the ADX indicator on the Tick Chart. If the ADX is above 20, THEN we look at the Damiani indicator on the 1min Chart. If the Damiani is green and telling us that we can trade. If all these indicators are okay, then we will open a trade in the DIRECTION indicated by the DMI on the TICK chart. If DMI is up, we will open a LONG and if the DMI is down, we will open a SHORT. What to do after we are in a trade? Now after you are into a trade... JUST do not be GREEDY! As soon as your trade is in profit by 4-5 pips... Just close it and get out. We will not be missing anything by doing so as we will have plenty of opportunities like this during the whole day. The best part of this system is that we are entering the trade almost at the exact moment when the pair decides to move with some power in one direction or the other. Most of the time, while you are closing the trade, in this little time, the trade will already move a few pips more and can be closed with more pips. This already tell you something very important, you always need to be aware about what is going on the chart the moment you open your trade. These types of trade are true scalping and hit-and-run trades, most of them will only be open for a few seconds or 1-2 minutes at most. Just don't try to catch too many pips per trade as you cannot afford to bank negative pips+spread on such trading system. One loss can wipe 4-5 profitable trades easily. A little about the MOMENTUM indicator If you look at the Momentum indicator with the chart zoomed out you will see that it forms very uniform peaks and valleys all across the charts. These are very helpful in indicating which signal to take on our trades. For instance, the DMI can go above 20 with the ADX signalling a BUY and the momentum indicator has just formed a nice upward hook from the bottom of it's range- a valley-this would be a good time to BUY. But if the same happens and momentum is in very high ascent you may want to pass on it and wait for the market to settle. It's a good indication that the volume is there but the price is over-bought. Be patient, if the volume holds out you WILL make money on the downside. The price must go up AND down. The momentum can be used as a good measuring stick. This is all about this interesting scalping strategy. Have fun and post back your experience. Thank you
I am Peter from New Zealand and have tried to scalp with the 1min chart. Do you think you could maybe help me? I like to learn and am keen. Regards Peter
Can you please share scalping system with us for that one minute chart as I just don't have any success with it. Like you I can't wait an hour only to find out I was wrong.
I am Peter from New Zealand and have tried to scalp with the 1min chart. Do you think you could maybe help me? I like to learn and am keen. Regards Peter
Try this: put a 20 period, 2 deviation bollinger band on the 1 minute chart. Then put an RSI 14 with OB/OS levels at 70 and 30. Wait for the price to be outside the bollinger band and the RSI to be oversold or overbought. Now you can either trade immediately here or you can wait for a higher probability trade which is as follows: say there was a high outside the bollinger and RSI is overbought (above 70). Now wait for the price to retrace a little, and then for it to equal or exceed the previous high. At this point, look at the RSI - if it is at a lower level than it was at the original high, you've got divergence and you enter short. Look for 3-5 pips or however long you can stomach staying in the trade. This setup is particularly useful if the overall trend is short (I use a 50 SMA on the 5 minute to give me a quick and dirty trend). If the overall trend is short, and you short, you can try to hold on for more pips. This happens a number of times each session.
PS - This thread is 2 years old, not sure if anyone is going to respond about the original system. I use ADX sometimes, but as an indication that the trend is reversing when it peaks over 25, unlike the original poster.
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For this scalping strategy to work, you will need to have access to Tick Charts on Metatrader. By default you cannot have this type of chart but there are 2 tools which you can download from the PIP bar thread that should provide you with the tick charts. Normally, most brokers do not provide tick charts but some do, so in this case, you will not need any additional tool as you will have access to the charts from the Broker Instrument list itself. We will be working with the EUR/USD as it has the lowest spread of all. Also, spread should be lower that 2pips for the strategy to be profitable on the long run.
Place the following indicators on the tick chart with these settings:
ADX (14)
DMI (14)
And place these indicators on a normal 1min bar chart (same pair):
Damiani signal/noise (on this forum, just search)
Momentum (14)
ADX (14), optional
What we should be doing...
We will be using the tick charts to identify surges in trading volume. This happens all the time. So when this happen, we will try to take advantage of these surges to make a few pips. Our main filter for this strategy is the damiani indicator. If the damiani says 'No Trade', then we will not be trading even if the trade looks 'delicious'...
First Steps
We will first look at the ADX indicator on the Tick Chart. If the ADX is above 20, THEN we look at the Damiani indicator on the 1min Chart. If the Damiani is green and telling us that we can trade. If all these indicators are okay, then we will open a trade in the DIRECTION indicated by the DMI on the TICK chart. If DMI is up, we will open a LONG and if the DMI is down, we will open a SHORT.
What to do after we are in a trade?
Now after you are into a trade... JUST do not be GREEDY! As soon as your trade is in profit by 4-5 pips... Just close it and get out. We will not be missing anything by doing so as we will have plenty of opportunities like this during the whole day. The best part of this system is that we are entering the trade almost at the exact moment when the pair decides to move with some power in one direction or the other. Most of the time, while you are closing the trade, in this little time, the trade will already move a few pips more and can be closed with more pips. This already tell you something very important, you always need to be aware about what is going on the chart the moment you open your trade. These types of trade are true scalping and hit-and-run trades, most of them will only be open for a few seconds or 1-2 minutes at most. Just don't try to catch too many pips per trade as you cannot afford to bank negative pips+spread on such trading system. One loss can wipe 4-5 profitable trades easily.
A little about the MOMENTUM indicator
If you look at the Momentum indicator with the chart zoomed out you will see that it forms very uniform peaks and valleys all across the charts. These are very helpful in indicating which signal to take on our trades. For instance, the DMI can go above 20 with the ADX signalling a BUY and the momentum indicator has just formed a nice upward hook from the bottom of it's range- a valley-this would be a good time to BUY. But if the same happens and momentum is in very high ascent you may want to pass on it and wait for the market to settle. It's a good indication that the volume is there but the price is over-bought. Be patient, if the volume holds out you WILL make money on the downside. The price must go up AND down. The momentum can be used as a good measuring stick.
This is all about this interesting scalping strategy. Have fun and post back your experience.
Thank you