Hybrid trading system

Hello fellow traders. Hybrid scalping system has been in development over last year and has finnaly evolved into reversal and trend trading system. System is mainly based on highs and lows and pure price action. I have almost completly stoped using indicators, which are usefull part of Hybrid trading system (Ichimoku, Bollinger band, Supply and demand, TMA) but i have decided to keep system clean and as easy and quickly as possible for beginners to learn and therefore not keeping any of those in this PDF version. I have actually completly rewritten and narrowed down PDF of this system becouse it was too big and complex with all indicators and gap trading along with fundamentals. This is now last and final version of Hybrid system as it is strongly profitable with 90% winning rate which really makes no point improving it further, along with that it is completly flexible on trading time and depends on what profits trader wants. 15 minuts trading a day (looking at charts every few hour for minute, forming 15 minute dedicated trading time at end of day) is enough. It will create usually more than 50 pips profits, trading it full time and taking entries on every single time frame can make over 1000 pips per day. System works on all time frames, no exception but mind one thing that Take Profit rules of 20 pips and 15 pips BE SL are set for TFs M15 and above. IF you trade M5 or M1 you need to use less TP and less BE SL. All currency pairs work for trading but i would suggest keeping this setup of traded pairs trough whole trading day: EURUSD, AUDUSD, GBPUSD, XAUUSD, GBPAUD, GBPJPY, USDJPY, EURAUD, USDCAD, USDCHF.

System as said before works in all trading sessions, 24 hours a day.

Important rule for placing trades are that on every entry you place 2 trades and split your lot sizes between them. First order has TP set to +20 pips, and second trade has TP exclusively based on highs and lows. Once in long entry we do not have presence of higher lows anymore we have to exit, or for short entry once there is no more presence of lower lows, we exit second trade. Secondary trades are meant to catch full trends on reversals many time catching over 100 pips. Important to use BE SL too, once 15 pips in profits we move SL to BE on both of trades.

Alright thats about it for introduction.

Lows and highs

Highs and lows are most important part of this system, recognizing them properly is important becouse recognizing them wrong could let to wrong analysis and use of system. I would suggest anyone who is beginner on Price action or this system in general to do good learning and studying of lows and highs before moving on. Bellow are examples of how we should find and define lows and highs, lows are marked with red and highs with blue color. You can use Zig Zag v2 indicator and google for it to help you start ify ou have trouble finding them.

Bellow is example of consolidated leg up where we should not be counting any lows or highs on selected time frame. Simply to avoid any confusion we dismiss and only count previous counted low or high that we were able to tell, keeping system robust is important.

Bellow is another example of smushed consolidated structures of PA that we should avoid to determine lows and highs all within that structure. Simply in case like that we are only counting current latest low or high that we did were able to define clearly by clear V shap and decent price drop/rise within it.

This is about it on lows and highs. I really suggest doing studying over historical charts of currency pairs to get better hand on it. Lows are basic of system becouse all we will trade of system (with some minor exceptions) is based of them, such as trading patterns of wedge and headn-shoulders.

Trading patterns is best way to trade system. We have two patterns to trade with this system. 1. Bullish/bearish wedge 2.Head and shoulders Rules to trade both of them are to trade them on breaks of structures so called breakouts. Wedge can be broken on both sides to make entry on, while Head and shoulders has to be broken depending on which type it is (bullish - bearish). Wedge is structured of 1 flat line and 1 trendline, flat line can be either support or resistance. It is important that flat line is flat line (resistance or support) and not trendline. This is becouse we trade them of same levels of lows or highs, whichever test flat line giving better and stronger entries than usual wedges from 2 trendlines. Head and shoulder pattern is made of "head" and two "shoulders". All of them are either lows or highs, supported by neckline which can be either resistance or support or trendline. Very important part is that shoulders are never higher than head. Additional thing is good that you are finding only Heand and shoulders with good defined highs or lows. Bellow is example of wedge:

Bellow is example of Head and shoulders:

Examples of wedges:

More wedge examples:

Head and shoulder examples, SLs placed above latest high for bearish HandS and bellow latest low for bullish HandS.

Trading breaks of lows : Lows broken can be traded with pending orders well or with market orders if we are quick enough to catch it. Broken lows are traded short.

Trading break of highs with presence of higher lows. VERY IMPORTANT, lows have to be higher from previous lows once highs are broken on upside for long to be legit. SL placed bellow lastest higher low.

As i mentioned before we always enter two trades on entry, splitting lot size between to manage our risk. We use 20 pips TP on first trade and exit second trade on highs and lows fail. This means for example if we are long we exit that long once there is no more presence of higher lows, with other words once lows have been broken longs are no longer valid. It is oposite for shorts. Another important thing to use is break even stop loss or so called BE SL. This protects our account once we are in enough profits in case if it price goes against us. This is very important becouse 50% of second trades are exited on BE, but once we hit profits second trades give 100 pips or more. For BE SL use +15 pips rule, as soon as your trade is +15 pips in profit move your SL to BE on both opened trades. Here is example of trade managment : Trade managment goes to : 1.proper use of SL (place bellow low (for long) or above high (for short) 2.Moving SL to BE once trades are +15 pips in profit 3.Exiting second trade once lows or highs are not holding anymore depending on long or short entry (do not use trailing stops for second trades, becouse it will complety chance profitability of second trades).

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