Day Trading Scalping System

Day Trading Scalping system is an intraday trend trading system that tries to capture gains through the analysis of trends and momentum in a particular direction.

This trading system consists of momentum oscillator Williams Percent Range, PSS volume Bar, Free Scalping System indicator, and Moving Averages.

The combination of various trend and momentum indicators together helps to determine when the price is trending strongly and trade in direction of the major trend. Let’s try to understand the working of this trading system.

Day Trading Scalping System Overview

Day Trading Scalping System Overview

Williams Percent Range is a momentum oscillator, which is calculated by considering the high low, and closing price. Value of Williams Percent Range moves between 0 and -100.

In the Sideways market, if the value is between -25 to 0 it is considered as overbought and if the value is between -80 to -100 then markets are considered as oversold. In Strong trends, Williams Percent Range can stay overbought and oversold for a long period.

Moving averages are trend indicators and are frequently used due to their simplicity and effectiveness. 20 period moving averages is above the 200 periods moving average then the trend is up and traders should look for long trades.

And if 20 periods moving average is below the 200 periods moving average then the trend is down and traders should look for short trades.

Also Read: Best Forex Brokers in South Africa

Day Trading Scalping System Explanation

Day Trading Scalping System Explanation

The moving average is also plotted on this momentum oscillator, which will act as a filter. If the value of the moving average is below -50 and Williams’ percent range is below the moving average then the trend down and momentum is accelerating upside.

If the value of the moving average is above – 50 and the Williams percent range is above the moving average then the trend is up and momentum is accelerating downside.

Free Scalping system indicator and PSS volume bar indicator working as a filter in this trading system. Both should turn green for long trades and red for short trades.

Day Trading: Buy Conditions

Day Trading Buy Signals
  • 20 period moving averages should move above 200 periods moving average.
  • Williams Percent Range should move above -50 and moving average of WPR.
  • The scalping system indicator & PSS volume bar indicator should turn Green.

Day Trading: Sell conditions

Day Trading Sell Signals
  • 20 period moving averages should move below 200 periods moving average.
  • Williams Percent Range should move below -50 and moving average of WPR.
  • The scalping system indicator & PSS volume bar indicator should turn Red.

Recommended Brokers

Share on:

Get E-Book Worth $100 for Free!!!
in your inbox

Thank you for subscribing. Check your mailbox

Something went wrong.

I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

Leave a Comment