Momentum
scalping trading with MACD is a strategy for intraday trading,
the but of this strategy is to capture the small reversal movements
of the price.
Time Frame 5 min.
Indicators:
Moving
Average 15 period linear weighted,the moving average is used to helps
us determine the trend for trading.MACD
(Moving Average Convergence Divergence) histogram
which helps us for determine the momentum of the price.
MACD
Histogram settings is the default, EMA
= 12, EMA = 26, Signal EMA = 9, close price.
Tools optional:
Pivot Point levels as exit point or static dynamic resistance and support.
Pivot Point levels as exit point or static dynamic resistance and support.
Trading rules
Buy
1)
The price to cross above the 15-period LWMA, and the MACD above the
zero.
2)
Go long when the price retraces to the 15-period LWMA.
3)
Place initial stop at swing low on 5 minute chart or place stop 20
pips below 15-period LWMA.
Sell
1)
The price to cross below the 15-period LWMA, and the MACD below the
zero.
2)
Go short when the price retraces to the 15-period LWMA.
3)
Place initial stop at swing high on 5 minute chart or place stop 20
pips above 15-period LWMA.
Variant
with support and resistance.
Drawing on the chart, lines of support and resistance where the price must have bounced at least 2 times.
Buy
with the
previous rules only if the
price
has formed a support.
Sell
with the
previous rules only
if the price has formed a resistance .
Make
profit
1) with two predetermined target profit (after the first TP move stop loss at the breakeven, the advantage of this: is lock in gains and ensures that we never turn a winner into a loser.)
2) At the pivot points levels or midpoint levels.
The advantage of using support and resistance as a starting point of this strategy is to avoid many false signals.
1) with two predetermined target profit (after the first TP move stop loss at the breakeven, the advantage of this: is lock in gains and ensures that we never turn a winner into a loser.)
2) At the pivot points levels or midpoint levels.
The advantage of using support and resistance as a starting point of this strategy is to avoid many false signals.
Examples
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