1 minute scalping with 50 EMA

1 minute scalping with 50 EMA is a trend-momentum strategy based on two moving averages and stochastic oscillator.
Currency pairs:majors.
Time frame 1 min and 5 min.
Indicators for trading
1. 100 Exponential Moving Average (EMA) - set to the close price.
2. 50 EMA - set to the close price.
3. Stochastic Oscillator with default settings - %K period = 5, Slowing = 3, %D
period = 3, Price field = Low/High, MA method = Simple and with levels at 20 and
80 (default).

Rules for trading with 1 minute scalping with 50 EMA
Buy
1. The 50 EMA must be above the 100 EMA.
2. We wait for the price to retrace back to the EMAs.
3. The Stochastic Oscillator must cross above the 20 level from below.
4. As soon as all the conditions above are met, we can open a buy order.
5. The Stop Loss is set 2-3 pips below the last swing low point or the 100 EMA,
whichever is closer.
6. The Take Profit target is set 7-12 pips away from our entry.
1 minute scalping with 50 EMA

Buy example
First, the 50 EMA is above the 100 EMA and this gave the signal to look for long entries only. The price retraced back to the 100 EMA and the Stochastic Oscillator crossed above the 20 level from below, which gave us the actual entry trigger.
A long trade was opened at the close of the signal candle, where all the conditions above were met along the horizontal line “B” at 1.29333.
Immediately after the long position was opened, a Stop Loss of 6 pips was set at 1.29273. That is exactly 2 pips below the last swing low point (horizontal line “C”). Then, a Take Profit Target of 12 pips above the entry was set at 1.29453 (horizontal line “D”).
As you can see, the Profit Target was hit 4 minutes later.
1 minute scalping with 50 EMA

Sell
1. The 50 EMA must be below the 100 EMA.
2. Wait for the price to retrace back to the EMAs.
3. The Stochastic Oscillator must cross below the 80 level from above it.
4. As soon as all the conditions above are met, we can place a sell trade.
5. The Stop Loss is set 2-3 pips below the last swing high point or the 100 EMA,
whichever is closer.
6. The Take Profit is set 7-12 pips away from our entry.
1 minute scalping with 50 EMA

Sell Example
Firstly, the 50 EMA was below the 100 EMA and this tells us to look for short entries
only. The price retraced back to the area between the 50 EMA and the 100 EMA and
the actual short entry signal was given by the Stochastic Oscillator that crossed below
the 80 level from above.
Immediately, a short trade was placed at the close of the signal candle, where all the
conditions above were met along the horizontal line “B” at 1.02397.
Then, a Stop Loss of 5pips was set at 1.02445, and that’s exactly 3 pips above the last
swing high point (horizontal line “C”).
Then, a Take Profit of 12 pips below the entry was set at 1.02277 (horizontal line “D”).
The profit target was hit 9 minutes later.

Related

Scalping Strategies 8214114374406779363

Post a Comment

emo-but-icon

item