177# TMO Scalper Forex Strategy

TMO Scalper Forex Strategy leverages the TMO Scalper and LNL Trend System indicators for high-probability entries on a 5-minute time frame, optimized for the New York session to capture peak volatility. Recommended pairs include GBP/USD, GBP/JPY, USD/JPY, NASDAQ100, and EUR/JPY, Gold, DAX 40.

Indicator Setup in TradingView

1. Main Indicator: TMO Scalper (True Momentum Oscillator)

   • Settings:

     • Time frame: (1, 5, 20)

     • Period: 14

     • Calculation Length: 5

     • Smooth Length: 3

     • Signal Setting: (3, 2)

     • Extreme Overbought (OB): 9

     • Extreme Oversold (OS): -9

     • Show TMO 2 and TMO 3

     • Display TMO signals 2 and TMO 2 extreme signals

   • Other settings: Leave all other settings at default.

2. Trend Indicator: LNL Trend System

   • Settings: Default

Indicator Descriptions

1. TMO Scalper (True Momentum Oscillator)

   • The TMO Scalper is a momentum-based oscillator that helps identify shifts in price momentum, especially effective for scalping on short time frames.

   • It uses three lines: the slow line (TMO Scalper 3), which indicates the main momentum direction, and the fast lines (TMO Scalper 2), which display short-term reversal signals.

   • With defined overbought (OB) and oversold (OS) levels, the TMO highlights extreme conditions, potentially signaling reversals. Its Buy/Sell arrows identify optimal entry points in trending or volatile market conditions.

2. LNL Trend System

   • The LNL Trend System is a trend indicator that visualizes market direction through a colored cloud. A green cloud below the price suggests a bullish trend, while a red cloud above the price suggests a bearish trend.

   • This indicator is particularly useful as an optional trend filter, supporting the TMO momentum signals by confirming the overall market trend.

Entry Rules

For a Buy Position

1. The TMO Scalper 3 (slow line) should turn green.

2. A Buy arrow should appear on TMO Scalper 2.

3. The LNL Trend System cloud should be green and positioned below the price candles for further confirmation.

For a Sell Position

1. The TMO Scalper 3 (slow line) should turn red.

2. A Sell arrow should appear on TMO Scalper 2.

3. The LNL Trend System cloud should be red and positioned above the price candles for further confirmation.

Additional Rules

• Maximum Trades in the Same Direction: Limit to a maximum of two consecutive trades in the same direction (either buy or sell).

• Stop Loss: Place the stop loss at the previous swing high for sell trades or the previous swing low for buy trades. If the LNL Trend System cloud is in use, the stop loss can alternatively be placed slightly above (for sell trades) or below (for buy trades) the cloud.

• Profit Target: Aim for a risk-reward ratio of 1:1 to 1:1.2.

Strategy Notes

This strategy is designed to capitalize on short-term, high-probability market movements. The combination of TMO Scalper momentum signals with the LNL Trend System’s trend confirmation enhances the accuracy of entries during periods of high volatility, making it ideal for active trading during the New York session.