Hello, everyone! Each scalper (intraday Forex trader who takes small TP) needs his own strategy. And each strategy, in addition to filters, should have MAIN indicator that gives a signal for the entry. And, maybe, the tool Scalper’s Dream will be such indicator for you.

Characteristics of indicator

Platform: MetaTrader 4
Currency Pairs: EURUSD, GBPUSD, GBPJPY, USDJPY
Timeframe: M1, M5
Trading Time: European and beginning of American session
Recommended Broker: Roboforex, Instaforex, Hotforex

Installation

Installation is very simple.

Description of settings

• PERIOD— the main parameter. Increasing the value slows down the indicator, resulting in improved quality of the signals and number of signals reduces. Reduction of the number is more suitable for aggressive traders. Total number and number of false signals increases.

• SL_add_pips и TP_distance_pips — the number of pips added to stop loss and take profit, calculated by the indicator.

• EmailAlerts — sending a notification of the occurrence of a signal to the email.
• CORNER— choice of the corner for the location of the informer (0 — left top corner, 1 — right top, 2 — left bottom, 3 — right bottom corner, 4 — hides the informer).
• SHIFT— shift of the indicator horizontally. A positive value shifts to the right, negative shifts to the left. 1 unit=shift to width of one column.
• UseAlerts— on/off notification when a new signal appears. Notification window displays information about the signal (buy/sell, stop loss, take profit)

Rules of Entry and Exit

Enter the market the color of the indicator is changed. Changing the color from red to green is the signal to buy, from green to red - to sale. Additional condition — the value of Trend Power should be not less than 65%.

Stop loss and take profit we take from Alert. Close the position also when the opposite signal appears.

If the indicator draws the same bars for a long time, you should not enter - it is flat. Also, we must exit if there is a profit on a position, but the indicator shows 5 similar bars.

Work with indicator

The indicator ScalperDream is a histogram of vertical bars of red and green color.

If red color is changed to green, we get Buy signal. When green color is changed to red, we get Sell signal. The values of columns after the close of the candle are not changed. That is, the indicator is not redrawn.

Also, in addition to the indicator in the upper left corner of the chart you can see supporting information.

This is the current currency pair, the strength of the trend in percent, the trend direction and the time until the current candle closes. As well as your broker’s time.

I said before, the entry takes place after changing of the indicator. An additional condition is the indication of TrendPower. We enter if the value is more than 65%.

Exit trades either when the color of the indicator is changed, or focusing on the values of StopLoss and TakeProfit taken from the notification window that pops up when a new signal to Buy or Sell appears.

Let’s take the beginning of the last trading week for analysis. We will not pay attention to the sleepy Asian session. As I said earlier, we begin to become more active closer to the opening of Europe. We wait for changes of color to enter the market:

A signal appears and after the close of the first green candle we open Buy Stop order. Set StopLoss and TakeProfit according to the information from the popup window. Unfortunately, we will not get its values from the history. Of course, Trend Power must be “up” and more than 65% strength.

Generally, the Stops from the Alerts window are more advisory in nature. You can specify your own values. For example, StopLoss after the last high or low. Or specify fixed TakeProfit. You can use trailing stop. Or you can wait for the opposite signal of our indicator.

After opening the position, the price goes in our direction about 57 pips:

And if we exit the trade when opposite signal appears, then we would get about 27 pips of profit. Not bad:

But this is just the beginning of the day. Next, we have flat until American session begins. Later we open Sell order and if we exit again on the return signal, we can get about 37 pips of profit:

You should agree, this is a good result for 1 day.

In addition, I want to note at this point that if after strong movement the indicator starts drawing the similar bars, this means that flat starts. That is to say lateral movement. And if you already have some profit, then it is recommended to close this trade after 5 similar bars.

The same is relative to the entries. If there are flat bars before changing of the indicator, as in the example below:

It is better to abandon opening of the position. Especially when you consider that the picture shows the beginning of the Asian session that we ignore.

Move on. Let’s find the activity of the chart before the opening of Europe.

We enter when pop-up Buy signal appears. The price moves 20 pips forward and moves back. Thus, we will get 0 pips in total. But we don’t despair and open Sale trade immediately. We would get about 55 pips of profit from this short term:

Some of these signals, shown above, we should filter with the help of PowerTrend indicator. But I hope you understand that there are no indicators and trading systems that can give 100% correct signal.

It is equally important to try to minimize the damage of unprofitable signals. You should not follow the dream blindly, even if it is scalper‘s dream. Like any other indicator, it should be filtered additionally. You must use Price Action setups, support / resistance levels, breakouts or knockouts from the levels. Or you should combine it with other indicators. Or you should combine it with other indicators. It is up to you because of your experience and knowledge.

Summary

Remember that the indicator itself is not a complete strategy. Additional filtering of signals and system approach will allow achieving the best results in the pursuit of your dream.

Download Forex indicator “Scalper Dream”