by Spikehunter: This is one of my most valued system. It is also a system that I traded for a long time and grow to know very well. It is very demanding on traders' attention because is targets extremely volatile market conditions without predetermined take profit. Therefore, it requires practice and precision. Also, it is next to impossible to get it coded into an EA. But If you are looking for a fast pips, every day this might be the right system for you.
Basically, I Am looking for spikes occurring on high calculation period Bollinger Bands. By spike I mean extremely tall wick of a candle that has at some point touched the BB. By very nature of rapidly moving wick (15 min chart) profit target is usually reached within minutes upon entry. It is hard to predict the end to and movement therefore you need to acquire a habit to close as soon as possible. To put it simply: small trade closed immediately is infinitely more valuable than big trade closed later.
For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.
This system is suitable only for experienced traders with emotions under control.
Fundamentally the system is simple. Rules are simple. What makes it hard is impeccable execution.
Used Forex indicators
We will be looking for a 5 min candle with extremely tall upper wick. Wick must be at least 2-3* the size of candle body. It must also be wider than most of the candle in the left side of the chart.
Candle with this wide wick must touch the upper BB line. It is not important whether the body or the wick touches the line.
Once the candle closes we enter the trade short immediately. Stop loss is placed above the high of a candle.
Now with the take profit it gets trickier for the most traders. You must be looking to exit ASAP with the profit of at least 5 pips. Sometimes you manage to get a full candle of profit, but again is much better to exit early with small profit.
Apply same rules at the bottom BB, looking for a candle with extremely tall bottom wick.
Notes: As you can see this forex strategy is no walk in the park. But trust me, it can be very rewarding. If you have your day systems in check and you need to stay close to the charts, why not make couple of extra pips with some aggressive scalping.