Lines Scapling System

The trading system that we will be reviewing was taken from the futures market. The system is based on scalping intraday moves.

The original system was modified a bit to accommodate the lack of tick charts in Meta Trader 4. The original system was traded on a 500 tick chart. I have changed this to the 30 minute chart, which is the closest time chart to the 500 tick chart.

The system uses the previous day's high, low, open, and close; as reference lines. The system requires that the trader let the first two hours of the new session go without trading. Then, the trader takes the support and resistance areas for the first two hours and uses them for two more reference lines.

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I used and tested the first two hours of the Asia session, London session, and the New York session. Due to the subjectivity of the support and resistance lines taken from the first two hours of trading, I used high and low of the first two hours for these points.

After drawing your lines, the object of this system is to find an area or space between the lines that provides a good place to scalp the market.

In the testing of this system, I used a minimum and maximum area or space, so that we would be scalping more than just a few pips and would not try to scalp to large of an area. Tests were only conducted on the EUR/USD due to the small spread.   

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