200 EMA with Stochastic Scalping Strategy is a trend reversal trading system based on the following indicators: Bollinger Bands, Slow Moving Average and Stochastic Oscillator. It only trades in the direction of the main trend determined by the 200-period moving average. If the price is above the moving average only buy, if the price is below the moving average only sell.
The stochastic crosses up / down from overbought and oversold.
TimeFrame: 5min , 10 min, 15min.
Symbol: EURUSD, USDCHF, AUDNZD, EURGBP, AUDCAD, AUDCHF, EURCHF, AUDJPY, EURCAD.
Low spreads.
Trading Session: London and New York.
Indicators:
Bollinger Bands (20, 0, 2) , as dynamic support and resistance.
Stochastic Oscillator (5, 3, 3, close)
Exponential Moving Average (200 EMA, close).
Trading rules 200 EMA with Stochastic Scalping Strategy
Buy
Price above 200 EMA.
Stochastic oscillator crosses upward from oversold.
Sell
Price below 200 EMA.
Stochastic oscillator crosses downward from overbought.
Exit Position
Place initial stop loss below above the middle band or below above the previous swing high low.
Profit Target 6-15 pips depends by pairs and time frame or at opposite band.
Examples of trades.
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