Pinbar Detector

Pinbar Detector (MetaTrader indicator) — tries to detect Pinbars (or "Pin-bar", or "Pin bar") and marks them by placing "smiling face" symbols below the bullish Pinbars and above the bearish Pinbars. It's a pure price action indicator, which isn't using any standard technical indicators in its code. The configuration of Pinbar detection can be modified via the input parameters. Pinbar Detector can issue platform alerts and email alerts on detection. The indicator is available both for MT4 and MT5 versions of the trading platform.

Input parameters:

• UseAlerts (default = true) — tells the indicator to issue platform alert with sound on Pinbar detection.
• UseEmailAlerts (default = false) — tells the indicator to issue an email alert on Pinbar detection. Email should be properly configured in MetaTrader via Tools->Options->Email.
• UseCustomSettings (default = false) — tells the indicator to use custom Pinbar detections parameters described below.
• CustomMaxNoseBodySize (default = 0.33) — maximum allowed body/length ratio for the Nose bar.
• CustomNoseBodyPosition (default = 0.4) — Nose body should be position in top (bottom for bearish pattern) part of the Nose bar.
• CustomLeftEyeOppositeDirection (default = true) — tells the indicator that the Left Eye bar should be bearish for bullish Pinbar, and bullish for bearish Pinbar.
• CustomNoseSameDirection (default = true) — tells the indicator that the Nose bar should be of the same direction as the pattern itself.
• CustomNoseBodyInsideLeftEyeBody (default = false) — tells the indicator that the Nose body should be inside the Left Eye body.
• CustomLeftEyeMinBodySize (default = 0.1) — minimum size of the Left Eye body relative to the bar length.
• CustomNoseProtruding (default = 0.5) — minimum protrusion of the Nose bar relative to the bar length.
• CustomNoseBodyToLeftEyeBody (default = 1) — maximum size of the Nose body relative to the Left eye body.
• CustomNoseLengthToLeftEyeLength (default = 0) — minimum Nose length relative to the Left Eye length.
• CustomLeftEyeDepth (default = 0.2) — minimum depth of the Left Eye relative to its length. Depth is length of the part of the bar behind the Nose.

As you can see on the chart above, the indicator isn't perfect as are the Pinbar pattern itself. It's recommended to try different detection settings to filter patterns according to your own image of the perfect Pinbar. A good idea would be to attach this indicator to long-term timeframes (H1 to W1) on all currency pairs you are comfortable trading in. Then, alerts would let you know once the trading opportunity arises.

Downloads:

Pinbar Detector for MetaTrader 4 in .mq4

Pinbar Detector for MetaTrader 5 in .mq5

Support and Resistance Trading Strategy

Support and Resistance Forex trading strategy — is a widely used trading system based on the horizontal levels of support and resistance. These levels are formed by the candlesticks' highs and lows. A break-through of these levels after a period of consolidation gives a signal for a trend. This strategy doesn't require any chart indicators except for the ability to draw lines (at least imaginary).

Features

• Well-defined low stop-loss.
• Relatively high success rate.
• Unclear target levels.

How to Trade?

1. Support level is formed by the lows of two or more candlestick bars that form a rather straight horizontal line with no lower lows between them.
2. Resistance level is formed by the highs of two or more candlestick bars that form a rather straight horizontal line with no higher highs between them.
3. Consolidation is a period without any trend, forming near support or resistance level, with the relatively small candlestick bodies.
4. A close below the support level signals a short position.
5. A close above the resistance level signals a long position.
6. Stop-loss is set to the low of the previous candlestick (for the long positions) or to the high of the previous candlestick (for the short positions).
7. Take-profit can be set relatively to the stop-loss or as a trailing stop of some sort.

Example
Support set-up:

Resistance set-up:

A period of consolidation is clearly seen on both example charts. In both cases the support/resistance level is formed by two candles on a rather short period. Stop-loss is placed close to the entry level. Take-profit couldn't be clearly set at the position entry moment, but a risk/reward ratio of not less than 1:2 could be used easily.

Warning!

Use this strategy at your own risk. It's not recommended to use this strategy on the real account without testing it on demo first.

Scalping Forex Strategy

Scalping Forex strategy — is a simple trading system that relies on very close targets, extremely low stop-loss and a lot of positions opened and closed during a short period of time. Not all Forex brokers allow scalping and not all that allow are good to scalp with. Scalping may not be suitable for all traders and, personally, I don't recommend scalping to anyone. The most simple scalping Forex trading system is presented here.

Features

• Nice profits for lucky (intuitive) traders.
• No need to pay attention to technical, fundamental or any other analysis.
• Spreads eat a big part of profit.
• Reward/risk ratio is usually too low.
• Not all Forex brokers allow scalping.
• Requires a lot of time for trading and monitoring.

How to Trade?

1. Currency pairs with a lot of intraday volatility but low spreads are recommended (EUR/JPY, GBP/USD, EUR/USD and USD/JPY are good examples).
2. M1 timeframe or lower is optimal.
3. Optimal trading time is during the European/U.S. and U.S./Asian trading sessions' intersection.
4. Prepare to enter the positions by closely monitoring the market activity for 5–15 minutes.
5. When you think that you "caught" the current short-term trend, enter a position.
6. Set stop-loss to about 10 pips.
7. The general rule for target profit is one or one-and-a-half spreads. Setting take-profit to such low levels (2–5 pips) is almost impossible, so you'll need to monitor the position to see the target profit and close it manually.

Example
No example chart is present for this trading system as there is nothing important to be shown on the chart. Let's view the following examples.

1. You open Long position on EUR/USD with 10 pips stop-loss and target for 4 pips of profit. After 20 second the position reaches 4 pips of profit and you close it.
2. You open Short position on GBP/USD with 10 pips stop-loss and target for 4 pips of profit. After 3–4 minutes the trend unexpectedly reverses and the position is closed by stop-loss.
3. You open Short position on USD/JPY with 10 pips stop-loss and target for 3 pips of profit. After about 1 minute the position reaches 4 pips of profit and you close it.
4. You open Long position on EUR/JPY with 10 pips stop-loss and target for 5 pips of profit. After 5 seconds the price spikes and the position reaches 12 pips of profit and you close it.
5. That's 10 pips of profit in less than 6 minutes. Of course, it's purely hypothetical.

Warning!

Use this strategy at your own risk. It's not recommended to use this strategy on the real account without testing it on demo first.

Martingale Trading System

Martingale trading system — is based on the popular betting (gambling) system of the 18th century France. The main principle of this system is to double the bet each time you lose so that if you win (considering a 100% bet win/loss each time) you recover a previous loss and will also gain the first bet amount. If one had an infinite amount of money, this strategy would be a sure-fire thing as with the infinite amount of bets the necessary result will with probability 1 eventually come. The problem is that no trader possesses an infinite wealth and thus utilizing this strategy eventually leads to a wiped account. Although it's a very popular Forex trading system and is used in many paid Forex expert advisors, I strongly don't recommend trading with it.

Features

• Theoretically bullet-proof system.
• Practically unsound.
• Reward/risk ratio can reach extremely low values.

How to Trade?

1. Any currency pair and timeframe will work.
2. Determine your basic position size.
3. Place an order in a random direction (Buy or Sell) with some fixed stop-loss and the same take-profit.
4. After the SL or TP is triggered you either win or lose.
5. If you win, set the position size to the initial and go the step 3.
6. If you lose, double the position size and go to step 3.
7. If you have infinite trading account balance, eventually you'll win a lot. If your account balance is limited you'll lose it eventually.

Example
No example chart is present for this trading system as there is nothing important to be shown on the chart. Let's view the following example.

1. You start with $10,000 account and can trade with mini Forex lots (0.1 of the standard lot) and decide to trade on EUR/USD.
2. You define your basic position size as 0.1 lots.
3. You decide to go Long setting stop-loss at 40 pips (or $4). The take-profit is set to the same value.
4. You lose the position. Now your account balance is $9,996.
5. You double your next position size to 0.2 lots, so that using the same stop-loss and take-profit levels you risk $8 and also have a chance to win $8. You decide to change the position's direction and go Short.
6. You win and now you've recovered lost $4 and also won $4. Your account balance is $10,004.
7. You return your position to initial 0.1 lots and start over.
8. With $10,000 account balance and $4 basic risk value you'll have to lose 11 positions in a row to wipe your account. You'll have to win 250 positions to double your balance.

Warning!

Use this strategy at your own risk. It's not recommended to use this strategy on the real account without testing it on demo first.

Simple Price Based Trading System

Simple Price Based Forex trading system — an interesting system that was developed by one of the Forex traders recently. It works for any pair (though, EUR/USD is recommended) and in all market conditions. No indicators are required to trade using this system. All you need is the ability to set up the pending orders.

Features

• Position-based trading for any state of the market.
• Trailing stop protects profit.
• Lack of statistical proof.

How to Trade?

1. Higher timeframe chart is recommended as each trading setup requires some calculations based on the latest bar.
2. Key number should be calculated first. It's based on the current price. For the quotes with 4 digits after a dot the key value is the current price multiplied by 10 and then rounded. For the quotes with 2 digits after a dot the key value is the current price divided by 10 and the rounded.
3. Place pending Buy order at Current Price + (2 * Key value).
4. Place pending Sell order at Current Price - (2 * Key value).
5. Place stop-loss for pending Buy order at Open Price - (2 * Key value).
6. Place stop-loss for pending Sell order at Open Price + (2 * Key value).
7. Take-profit for both orders is calculated similarly to the key value but the current price should be multiplied by 100 for the quotes with 4 digits after a dot and shouldn't be divided for the quotes with 2 digits after a dot. In both cases the values should be rounded.
8. Trailing stop is also applied to the orders and is set to 2.5 * Key value.
9. Don't forget to cancel the untriggered orders after the timeframe period ends.
10. If this sounds too complicated, see the example below.

Example

Let's calculate the entry conditions and parameters for an example presented on the chart:

1. It's a EUR/USD H4 chart.
2. The current price is 1.4810, the current bar's open price is 1.4832.
3. There are 4 digits after a dot in the quotes for EUR/USD. That means that the Key value is calculated as 1.4810 * 10 = 14.8. Rounding it results in 15 pips.
4. Pending Buy order level is calculated as 1.4810 + (2 * 15) = 1.4840.
5. Pending Sell order level is calculated as 1.4810 - (2 * 15) = 1.4780.
6. Stop-loss for pending Buy order is calculated as 1.4832 - (2 * 15) = 1.4802.
7. Stop-loss for pending Sell order is calculated as 1.4832 + (2 * 15) = 1.4862.
8. Take-profit for all pending orders is calculated as 1.4810 * 100 = 148.1 or, after rounding, 148 pips.
9. Take-profit for pending Buy order is set to 1.4840 + 148 = 1.4988.
10. Take-profit for pending Sell order is set to 1.4780 - 148 = 1.4632.
11. Trailing stop for both orders is set to 2.5 * 15 = 37.5 or, after rounding, 38 pips.

Credits

This trading system was originally developed by The Forexkid. The version presented here has some minor modifications.

Warning!

Use this strategy at your own risk. It's not recommended to use this strategy on the real account without testing it on demo first.