Scalping system #6 (EMA Bands)
Submitted by Edward Revy on July 19, 2007 - 18:54.
This scalping system was sent by Frank Tenerife (Spain).
Thank you Frank! You contribution is greatly appreciated.
Here is the system:
"This is an efficient system of scalping that works in 1 minute up to 1 day all periods and all Currency
Ema 3
Ema 5
Ema 7
Ema 9
Ema 11
Ema 13
Color yellow
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Well, systematic approach is when you do what system says. Discretionary is when you make decisions on your own. I am mixing both. I am not always open positions when system says so, and I sometimes open positions when system says not yet.
well, long term for me anything longer than few seconds/ minutes:)I am scalping and sometimes day trading.
For break outs you gotta use candlesticks along with ema's. Candlesticks say you the market are moving. EMA's confirm it.
Hours for example. This strategy shows clearly where the trend is going, candlesticks show you where support/ resistance levels. You make your plan according to the information. It is not 100% of course:) but it increases probabilities greatly.
Joan,
I use 40 to 50 pips stop on EURUSD hourly charts.
Simon
Dear Edward, I use this strategy and it is really good one. However I am having a problem with detecting when real break out happens and when trend starts. How this strategy and its indicators can be used and for what signs should I watch to detect real trend start and not to get into false trends?
Real trend starts when price is no longer kept in between its previous support/resistance levels, when it breaks out and above the previous top or down and below the previous bottom.
Will a trend support our trade or it'll be stuck in drifting sideways flow, we don't know, we can't forecast a trend in advance.
We take every trade that meets our rules and use filters and indicators only to increase our chances to be on the winning side, not to predict a trend.
That's why some trades will be losers no matter what.
Regards,
Edward
I add parabolic SAR (0.02,0.2) on a 1 min GBP/USD chart. I also add 144 EMA. If yellow band crosses 144 EMA as well as 55 EMA and green band, I remove my TP order and manually close when yellow crosses green or when SAR gives opposite signal. Also, if SAR gives an exit signal and yellow has not touched green yet, I temporarily close until SAR gives confirmation that the correction is over. Also, after a large and fast price movement, I tend to expect a correction before SAR gives the signal. This early signal is the yellow band going horizontal.
Exactly, when that SAR point appears on the opposite end, it says get out:) It works real good with 11 EMA's. It even looks beautiful and simple. I think in this case beauty is really effective:)
Account is up +22.5% in 4 weeks. Was +24% but I made 3 stupid trades on Friday when actually there was nothing to do with EUR/US.
hi i have been using a method with success very much like this one i have a problem now tho, i trade with fxdd and a friend of mine has had trades disappear from his screen he has tried to withdraw his funds but they are ignoring his emails now im worried they will do the same to me has anyone else had this problem with fxdd. lj
Thank you for an interesting system that works.
Steve
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