Scalping system #6 (EMA Bands)

Hi Edward -

Me 2 . Looking forward to your comments . The more I study these multiple EMA 'S the more I like 'em !

Bon chance ,

Fraser

HEllo,
Tnx Edward. I'll wait & hope U success :)

Regards - Ehsan

Hello Fraser and Ehsan,

I would need to re-evaluate the system again in order to comment on it. Let's wait for Mr.Tenerife to reply, and I'll be ready with my observations next week.

Regards,
Edward.

Hello Dear Edward,
Tnx 4 Ur method. But I have a little trouble with it. I think that we have to make a separate rules for each time frame. For example T/P must be 5 pip for M1 time frame. Or not to trade if the alarm candle, can touch one of bollinger band. Do you have any suggestion?
Also, I have frequently stops. Do U have any additional rules?

Regards - Ehsan

Edward Revy -

Mr Tenerife's multiple EMA's looks promising. Some of his rules are not clear , though . I agree with your suggestions re setting targets .

So....how about this for Long entries :

!- Look at 30 min chart to confirm the Trend.

2 - Then , using 1 minute or 5 min. chart, look for a distinct upswing with the yellow clearly above the green and the 55 red .

3 - Enter Long with a 10 pip Target.

Now the Pullback rule is not clear . I assume you wait for the yellow lines to pull back towards the green and squeeze or compress

together, then enter Long again , ( but with a 5 pip Target ) ; when yellow and green lines widen and continue

their upswing

4 - I am not sure where to place the Stop loss. Trailing Stop perhaps ? The rule is not clear .

Does all this sound about right ?

Thanks for great website .

Fraser

Hi George,

Sure it does :)
Guppy EMAs is a popular trading method.

Happy trading!
Edward

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

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)

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 news release and for at least 5 minutes after the event.

Regards,
Edward

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.

For Guppy, watch your spreads when scalping.

Yes, in my opinion it will be.

Regards,
Edward.

Hi all,
Could anyone tell me if this system will be effective to GBP/JPY short scalping

Regards,

Ele

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.

Where is the best time frame for this system for GBP USD and EUR USD. Thanks