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Thread: Tick charts

  1. #1

    Default Tick charts


    I saw this posting on the FX fisherman site. Would this be worth testing ?

    Thanks !


    Profitable Scalping on Tick Charts


    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.

  2. #2
    Administrator funyoo's Avatar
    Join Date
    Sep 2008


    Hi Dutchess,

    According to my knowledge, we can not convert the combination "indicator over tick chat" with MQL.

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