Intraday Scalping Strategy with round levels

As we can see from the title this strategy uses round levels. Therefore, first of all, we shall determine what kind of levels are they and why are they called «round».

These are the levels, which values have two zeros at the end. We all learnt in mathematics lessons at school what the rounding is. In this strategy we also deal with the rounding, because the real levels of resistance or support may be very close.

Lets view an example. Assume that the nearest resistance level for the currency pair EUR / USD is 1.3495. In our strategy we will round it to 1.3500 and we will do it for all currency pairs and on any timeframe.

Note that this trading strategy does not use any indicators. And this is a big advantage. This strategy does not require from a trader to know a system of candlestick analysis or price action. Trade is conducted on the basis of breakdown of the round levels.

It is assumed that after breakout of the important levels market is experiencing correction. Usually, the correction starts at a distance of thirty points from the broken round level.

First of all it is necessary to determine the nearest to the price round levels on the chart. Look at the screenshot. Here, the nearest level was 1.31000. Lets count thirty points away from this level. This is the level where we can open a position.

How this strategy works

Let‘s view the rules of placing sell and buy orders in accordance with this strategy. We will begin with sell orders. Assume that the price breaks down important round level from bottom to top. Let’s count 30 points down and place a Sell limit order at this level. A sell order will be opened automatically.

After that we shall determine the level of take-profit and stop-loss orders. The author of this strategy recommends to close a trade after reaching a profit of 10 points. The stop-loss order is placed at a distance of 21 points. This strategy uses not typical way of calculating risks. But these methods are applicable for scalping.

It is possible to place a stop loss order closer, but market noise is too great in the intraday trading and if stop orders will be repeatedly activated, it will cause losses.

For placing buy orders with the use of intraday scalping strategy with round levels, traders shall wait when the price breaks out the round level from top to bottom. Count thirty points from this level and at this point place a Buy Limit order.

Take-profit can be placed at the distance of 10 points and a stop-loss order at the distance of 21 points.

For the currency pair USD / CAD the rules are slightly different. In order to determine entry point, it is necessary to count not thirty but fifty points away from the breakout point of the round level. The rules of placing Take-profit and Stop-loss orders remain the same.

The author of the strategy recommends to start work at 1 oclock Moscow time and finish trading not later than 20.00 Moscow time. If the orders are not activated until 23.00 Moscow time, they should be removed and a trader can start trading on the next day. It is advisable to use the largest round levels (eg, 1.31000) instead of lower levels, such as 1.31200 or 1.31100.

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