Scalper Dream Indicator - the dream of any scalper

Hello everyone! Every scalper (intraday forex trader taking small targets) needs a strategy of their own. And in every strategy, besides filters, a MAIN indicator is required to provide an entry signal. And perhaps the Scalper Dream tool will become exactly that indicator for you.

Platform: Metatrader 4
Currency pairs: EURUSD, GBPUSD, GBPJPY, USDJPY
Timeframe: M1, M5
Trading time: European and the beginning of the American sessions
Recommended brokers: Alpari, Roboforex

The indicator is installed as usual.  There are two versions of the indicator: for build 509 and for 600+. Choose the suitable one, and off you go.

We enter the market when the indicator changes color. A change from red to green is a buy signal, from green to red is a sell signal. An additional condition  is that the Trend Power value must be at least 65%.

We take the stop loss and take profit from the alert. We also close the position when an opposite signal appears.

If the indicator draws identical bars for a long time, you should not enter: it is a flat market. Also, if there is profit on the position and the indicator shows 5 identical bars, we exit.

The Scalper Dream indicator itself is a histogram of vertical bars colored red and green.

When the color changes from red to green, we get a buy signal. When it changes from green to red, we get a sell signal. The values of the bars do not change after the candle closes. That is, the indicator does not repaint.

Also, besides the indicator, in the upper left corner of the chart you can observe auxiliary information.

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

As I already said, entry into the market is made after the indicator changes. An additional condition is the TrendPower readings. We enter only if the value is greater than 65%.

We exit trades either when the indicator changes color, or by using the StopLoss and TakeProfit values taken from the alert window that pops up when a buy or sell signal appears.

Let us 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 start becoming active closer to the opening of Europe. We wait for a color change to enter the market:

A signal appears, and after the first green candle closes, we open a buy order. We set StopLoss and TakeProfit according to the information from the pop-up window. Unfortunately, it is not possible to learn their value from the historical chart.

In general, the stops from the Alerts are more of a recommendation. You can set your own values. For example, place StopLoss behind the last high or low. Or set a fixed TakeProfit. Use a trailing stop. Or wait for the opposite signal from our indicator.

After opening the position, the price moved about 23 points in our direction:

And if we had exited the trade when the reverse signal appeared, our profit would have been only 5 points, which is not that much:

But this is only the beginning of the day, so there is no reason to get discouraged. Next, we open a sell order and, by exiting again on the reverse signal, we can earn about 60 points:

Which, agree, is a good result for 3 days.

In addition, I want to draw attention to the fact that if after a strong move the indicator starts drawing identical bars, this means a flat is beginning. That is, a sideways movement. And if you already have some profit, then it is advisable to close the trade after 5 identical bars:

In the example of the last trade, the indicator started drawing identical bars, and this is already the place where the trade should be closed:

Which would have been even a few points more profitable than on the reverse signal:

Everything is exactly the same regarding entries. If there are flat bars before the indicator changes, as in the example below:

Then it is better to refrain from opening a position. Especially considering that the picture shows the beginning of the Asian session, which we ignore.

Let us move on. We find histogram activity before the opening of Europe.

We enter on the buy signal that appears. The price moves only 10 points and turns back. At the same time, in total we will get 0 points. But we do not get discouraged and immediately open sells. From the short position, it would have been possible to earn about 47 points:

Some of these signals, shown above, should be filtered by the trend strength indicator. But I hope you understand that there are no indicators or trading systems that give a 100% correct signal.

It is equally important to try to minimize the damage from losing signals. It is not worth blindly following the dream, even a scalping one. Like any other indicator, it needs additional filtering. Use price action setups, levels, breakouts or bounces from levels. Or combine it with other indicators. Here it is up to you to decide based on your experience and knowledge.

Remember that a bare indicator is not a complete strategy. Additional signal filtering and a systematic approach will let you achieve the best results in chasing your dream.

Discuss on the forum

Respectfully, Andrey aka topepo241
TradeLikeaPro.ru