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Scalping with Momentum - Stochastic and MACD Trading for Volatility Market

Scalping with Momentum, is a forex strategy based on Bollinger Bands, Stochastic oscillator and MACD for trading in Volatility Market. Setup Strategy: Trading Type Scalping Trading Style: Momentum- Multi time frames Time Frame 5 min, 15 min, 30 min, 60 min. Signal detection 15 min, Confirmation signal 30 minutes or H1 Trade Execution: 5 minutes. Indicators: Bollinger Bands (22 periods, 2.0 deviations); Stochastic oscillator (5,14,13) MACD (12,26,9) Trading rules  Scalping with Momentum Go M15 time frame setup indicators: MACD forms a peak Stochastic oscillator is in Oversold or Overbought zone The price touched upper/lower band.


Scalping with Momentum, is a forex strategy based on Bollinger Bands, Stochastic oscillator and MACD for trading in Volatility Market.

Setup Strategy:

Trading Type Scalping

Trading Style: Momentum- Multi time frames

Time Frame 5 min, 15 min, 30 min, 60 min.

Signal detection 15 min, Confirmation signal 30 minutes or H1

Trade Execution: 5 minutes.

Indicators:

Bollinger Bands (22 periods, 2.0 deviations);

Stochastic oscillator (5,14,13)

MACD (12,26,9)

Trading rules  Scalping with Momentum

Go M15 time frame

setup indicators:

MACD forms a peak

Stochastic oscillator is in Oversold or Overbought zone

The price touched upper/lower band.

Scalping with Momentum

Sell Signal

Blue line in the Stochastic Oscillator needs to reach the 80 level.
MACD histogram forms a peak.
The price has to touch the upper Bollinger Band.
Candlestick rejections forms.

Scalping with Momentum

Buy Signal

Blue line in the Stochastic Oscillator needs to reach the 20 level.
MACD histogram forms a peak.
The price has to touch the lower Bollinger Band.
Candlestick rejections forms.

When all the rules for sell or buy are met on M15, draw a
straight line to mark out the targeted reversal point.

Scalping with Momentum

After drawing a line on M15, move to M5 for further
confirmation. Take the following actions if you see any of the
following on M5:

Scalping with momentum

Scenario 1
all the conditions met on min 15 are also met min 5
action: mark as high potential set up
scenario 2
all the rules met on min 15 are not met on min 5
action: discard trade immediately and wait for another
signal on m15
scenario 3
all the conditions met on min 15 are about to be met on min 5
action: wait patiently for complete signal formation on
m5 before entering.

example:
The conditions for sell have been met on M15 and confirmed on M5. when you checked Min 30 and H1, you noticed that the BUYING POWER is high. This means the price might not respect the signal and move along with the trend instead.
To detect the trend direction on both M30 and H1, you will check the crossover on the Stochastic Oscillator and MACD histogram formation.
Buy: Stochastic Blue line crosses the Red and moves upward, while the MACD predicts an upward movement.
Sell:Stochastic Blue line crosses the Red and moves downward, while the MACD predicts a downward movement.If all these conditions are met, you can safely enter your trade on M5.

Exit Position

There are methods you can use to determine when the movement is done.The Bollinger Band:
Price reaches the middle band or
Price reaches the last band

The Stochastic Oscillator
The blue Stoch line touches the opposite level, e.g. For a sell entry, the line goes from 80 levels and approaches 20. Vice versa for buy.
Place initial stop loss on the previous swing High/Low.

Examples of trades

Scalping With Momentum

In the picture AUDUSD above there are 4 potential setup for trade.

Scalping with momentum

In the picture NASDAQ above there are 2 potential setup for trade.

Scalping with Momentum

In the picture Gold above there are 4 potential setup for trade and for experts I also show how to re-enter if the MACD still crosses in the opposite direction and the movement has continued in the initial direction and there has been no reversal.






 

Scalping with Momentum - Stochastic and MACD Trading for Volatility Market Reviewed by learn forex trading on April 17, 2021 Rating: 5

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