Grid Trading System works by creating
and maintaining trading grids. A trading grid is set of trades placed
on the chart. There are 2 basic
elements every grid has – a Base Line and a Grid Step:
- The Base Line is the initial grid line. It is often selected to be at the closest round price.
- The Grid Step is the distance (in pips) between the grid lines. For example if your Base Line is at 1.2550 and your Grid Step is 10 pips then you will execute a trade at 1.2550, 12560, 1.2570, 1.2580, etc. whenever the price gets there. All these price levels are the grid lines where you place your trades.
Here you can find an example of a grid trading chart.