Scalping system #6 (EMA Bands)

Hi Edward-

There still seems to be different ideas re the pullback.

Ehsan on 4-4 ,

sez the candle that confirms the squeeze must open above / below the green and close above / below the yellow for

the entry , but on web page 4 , answering me , you said

enter after the first candle that closes above / below the 3 EMA !

Regards,
Fraser.

Thanks to EVERYONE on this web site for your comments and suggestions. I feel like I belong to a friendly Club here !!

George

Nice comment,
thank you, Ehsan.

Hi Dear Edward,
Tnx 4 Email address. I obtained a rule for "Pull Back" situation.
For Long, The alarm candle (that confirms squeeze or pull back of Yellow Ema's) must be opened sopping above the green Ema's and closed above the yellows.
For Short, The alarm candle must be opened bellow the green Ema's and closed bellow the yellows.

Regards - Ehsan

Hi Edward
Thanks again !

George

Hi George,

"Move stop to break even" means that you are setting a Stop order at the price you Entered with. You do so when you gained some pips and the trade is still open.

From the moment you're break even, you have a so called "free trade" where you risk nothing: if the market reverses, it hits your stop and you are out with 0 pips. Otherwise you make profit.

Don't forget to include the spread into calculation, move S/L order to the point where you are break even with spreads covered.

Regards,
Edward

Hello Edward,
I noted all comments re Tenerife's method. but what exactly does " move Stop to break even " mean ?

George

Hello , Edward - Thanks for your comments . I also noted the ones to Ehsan as well.

Regards ,

Fraser .

Sure,

Feel free to contact me any time.

Regards,
Edward

Hi,
Tnx 4 your help Edward. Could U please give me your email?

Regards - Ehsan

Hi Ehsan,

I wouldn't probably use Bollinger bands, I'm not a big fan of them :)
Now, regarding frequent stops - that's a part of trading. To eliminate the number of losses we may set shorter profit targets.

Thus, you are right about redefining profit targets for each time frame. I would also add here that targets should also be individually fit to each currency pair, e.g. less for EUR/USD, more for GBP/USD, even more for GBP/JPY.

I'd trade with, say, USD/JPY - I like this pair, for 3 days during one week, and 3 days during the next week and write down on paper how many pips it has brought in each trade.
Then define the best number and set your targets accordingly.

After that you may also apply next method. Upon entry signal, open 2 orders. One will be closed with the target you have defined during previous weeks testing, second, run till the cross of 13 and 21 EMA.

Happy trading!

Regards,
Edward

Hi Fraser,

I find your observation right. I'd like to add my comments on a stop and re-entry question.

For re-entry, we wait for yellow lines to squeeze, but they are required not to touch the green group. Then we enter after the first candle has closed above (for Long entries) / below (for Short entries) 3 EMA.

I wouldn't use trailing stop much for this strategy, because we are going to be stopped out too often too soon.

My view is to put a fixed stop when Short - 5 pips above the candle with highest high in the swing, when Long - below the so called bottom of the swing low.

Trading 5 min charts doesn't require trailing stops because you are most likely going to monitor the trade all the time. Therefore, exiting will be planned on the close of a candle that caused 21EMA and 13 EMA to cross. No earlier and no later.

Overall, good observation. Thank you for your comment.

Regards,
Edward

Hi,
Where R U Dear Edward? :)

Regards - Ehsan

Hi,

To add an indicator on MT4 go to menu "Insert" -> "Indicators" -> "Trend" -> "Moving average"

Regards,
Edward

Where do I find these indicators on the Metatrader 4 platform?

signed,
obviously a newbie