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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The system works well on all time frames: from monthly to 1 minute.
Thus it solely depends on traders own preferences whether to use 1, 5, 15 60 min TF or set it up on daily charts.
For scalping I would use 5 min charts in combination with 30 min for trend confirmation.
Regards,
Edward.
Hi all,
Could anyone tell me if this system will be effective to GBP/JPY short scalping
Regards,
Ele
Yes, in my opinion it will be.
Regards,
Edward.
For Guppy, watch your spreads when scalping.
I always belived there are more that affect currency movement than just the past average price movement. Can anyone tell if this system would function well if a market condition is being affected by economic events?
And how do one enter into such trades with low stops knowing that alot of brokers dont guarantee execution.
You are right. Market is driven by economic events and figures while past average price values only reflect the market in a convenient to traders' eyes way.
However, market experts have noticed that traders often tend to trade what they want to see... patterns in price and indicator graphics.
As a result we get an effect when certain commonly used indicators, such as, for example, moving averages (200 EMA, 20 EMA etc) start directly influencing the market as large percent of traders set orders according to patterns seeing in the relation to MAs.
That's why different indicator based strategies emerge to capture this mass reaction to known indicator patterns.
As about increased volatility on the market due to news releases, it is advised to avoid opening new trades during the moment of a release and for at least 5 minutes after the event.
Regards,
Edward
Great work Mr Tenerife. Not that I am a critic toward scalping but I just cannot assume certainty that one can execute trades with profit successively from scalping because events can cause a stir which could be a reversal leading to whipsaws without technicals identifying this.(emas are laggers)
Mr. Alfred Owei(Nigeria)
Hi Edward -
Thanks for your suggestions re profit targets. Looks like another great method from one of your contributors , Frank Tenerife.
I seem to recall a similar multiple EMA method by an Australian named Guppy. Does that ring a bell ??
Regards .
George
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