I thought that I would like to contribute with a simple scalping system that I came across. It seems to work very well and can be used to make 10 pips a day or even more!
Any help to improve this strategy is appreciated. This usually happens before a trend starts and when a trend ends. I use 8 as stop loss but i'm unsure on this one, any suggestions would be appreciated! Entry example, result example, template and an optional indicator to see time left on each candle is attached below Note: I did not take all the trades in the Result example, it's just an example of trade opportunities.
Template and candletime indicator. Well you dont really know for sure but when the candle opens outside the the 5EMA the chance is big that the candle retraces back to the bands. If you wait until it has closed you might already have missed out on your 5 pips. This will give you a more accurate signal but alot lesser trades. Forgot to mention though, if the candles rides the upper or lower EMA as in a up or down trend, stay away from a trade until the trend calms down.
Thanks for putting this system on the forum!!!!!!! I have been having trouble with the one I was using and frustration had set in. I know dedication is needed, and I stuck it out for a few months, but I just hit a wall. If I would have gotten out of bed earlier, I would have even more trades!!!! I use the MACD set at 5,8,1 for confirmation of the trend coming to an end and changing direction.
The next time I post I will put up some screenshots. I have to leave for my J-O-B right now. Nice to hear AmishBuggyFX and you're welcome!
If the price moves far away from the 5 EMA close the price always seems to make a quick retrace back to the Close. You might wanna lower your stop loss if you're just going for 2 pips. Keep us informed how it's working out for you! How do you tell the candle is green or red when it first opened? Sometimes it changes color in seconds even 1 or 2 seconds. The market might not fluctuate too much.
What if our take profit is not hit after the next candle? Should we wait or exit? We can't expose ourselves too long in the market, the direction might reverse any time, it is too risky since our take profit is too small. Sorry for many questions asked. This is why i take only 2 pips BUT, i will stay way from the setup if it has long opposite wick.
This method only works with broker that have atleast 2 pips spread Now Im still testing it for awhile and trying to get suitable sl for this method. You're right it might change in seconds but if we take an example; A candle opens above the 5 EMA and is green then you might not wanna take the trade just yet as it might continue to go upwards.
Yes we can enter regardless how far away from the 5 EMA but you might want to be more carefull if it opens very close, you might not want to take 5 pips, maybe just 2 as qwertyuioped is doing, as I said in the first post "5 pips or take what you can get" This don't have to mean that you're going for 5 pips everytime, if you feel that it might turn around, get out regardless if you're up only 1 pip.
Damn, missed out on two trades sitting here and writing! I don't really understand what you mean with "pay attention to candlestick" would you like to explain? In your example, when would you enter? Before the first green candle after the bearish red candle closes?
After that candle closes? Also, I have a question regarding spread. I'm assuming you have a relatively tight spread, otherwise you wouldn't be scalping. What do you do during news reports? Sometimes spreads can widen, or price can move very quickly, I guess those wouldn't be good times to trade this system?
That's a tricky question though, if you enter on the first green candle you could risk that it's going to continue to go down but as it opened extremely far away from the 5 EMA low and 5 EMA close, it would be in most cases a pretty safe enter, in this situation it would also be good to look at the RSI and look if it's oversold, this will give you more confirmation and better confidence in the situation.
Try to aviod news times. One hour after London open and one hour after NY open would actually be pretty safe times to trade. Do most of the Forex Brokers allow scalping? Or do they set a minimum amount of time a position must be held? Are the Newbies leading the way? Free Forex Trading Systems. Let's get to it! Please read all posts before you start trading, there's alot of usefull information!
I did not take all the trades in the Result example, it's just an example of trade opportunities Result example. Just grabbed 5 pips right after posting this!
Anyway, I found this thread yesterday at work. This morning I tried it out. Interesting thought with the MACD, looking forward to some screenies! Oh and another thing! And as qwertyuioped is saying, don't trade in quite markets!More...