Swing
Highs and Lows with Bands Scalping
is a trend-momentum strategy.
Forex
Indicators:
Bollinger
bands indicator.
Moving
averages: 7 Moving averages, 3 Moving averages. 200 Moving averages,
50 Moving averages.
Momentum
indicator (14 period) .
Swing
highs and lows.
Fibonacci
levels.
5
minute time frame.
4
Hours time frame to confirm our decision.
Because
we want to scalp the market so you need to switch to the 5 or 15
minutes timeframe.
Now
you should look at the 4 hours time frame and write on a piece of
paper thetrend line you have just discovered.This will going to help
you to not enter against the major trend line, to make 80% of your
decisions guaranteed.For me, I have defined the major trend of the
EUR / USD. And I find that the trend has changed its direction
from an uptrend to a down trend.
As
you look at the image above the trend line is tested for three
times, the price failthree times to break the trend...
This
trend is very strong.Now the trend is broken by the price, we expect
a huge fall of the price.In this case you should search for short
positions.
Come
back to the 5 minutes time frame. We are going to search for
short positions.Here are the rules:First thing before I show you how
to enter, monitor and exit the market:Do not forget the risk
management rules, do not risk more than 1-2% of your account value.
Sell
entry conditions:
(Look
at the image below)
Here
are the 5 conditions to sell:
The
50 Moving average is down [Green line].
The
200 Moving average is above the price [Pink line].
The
3 Moving average[Blue line] crosses the 7 Moving average [Yellow
line]from the top to bottom.
The
momentum is in the overbought area [above the red line].
A
bearish candle is closed below the first, second or the third
deviation of the bollinger band indicator [the three Medium Sea
Green lines].
Buy
entry conditions:
In
the case you find the major trend is an uptrend...Here are the 5
conditions to buy:
The
50 Moving average is up [Green line].
The
200 Moving average is below the price [Pink line].
The
3 Moving average [Blue line] crosses the 7 Moving average
[Yellow line]from the bottom to the top.
The
momentum is in the oversold area [under the red line].
A
bullish candle is closed above the first, second or the third
deviation of the bollinger band indicator [the three Medium Sea
Green lines].
Exit
Once
the 3 moving average begins to cross the 7 moving average from the
top to the bottom,
close the position:
On
the other side, If you open a short positionOnce the 3 moving average
begins to cros the 7 moving average from the bottom tothe top, close
the position:
PS
Make
sure to confirm your decisions using the momentum indicator
becausesometimes it could be a fake cross.I exit the market also
using the Fibonacci retracement.If you go long in a position you just
need to wait until the price approach the 61,8%Fibonacci resistance
lineThen exit the trade (like you see in the image below)
If
the 61,8% Fibonacci line has been breached by the priceOpen a new buy
position and target the 127% Fibonacci line (like you see in
thepicture above the price breached the 61,8% level, then the price
continue its direction to the 127% Fibonacci level, it's a kind of a
big deal almost 80 pips as an additionalgain).If it was not the
case, just close the position and collect your profit!Otherwise, if
you go short (Sell position) you need to wait until the price
approach the61,8% Fibonacci support line.Then get out of the market!
If
the 61,8% Fibonacci support line has been breached by the price,
target the 127%Fibonacci level.[Make sure you enter the market in the
direction of the major trend]
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