338# EMA Scalping System

Submit by Marco 15/05/2013

If you can trade during the busiest hours, from 3 am to 11 am EST, there is

always at least one big breakout or breakdown, good for 30-100 pips,

especially around the US news release time which is usually 8:30 am EST.

SET UP YOUR CHARTS:

Open a EUR/USD candlestick chart with a white background.

Add a moving average of 4, Exponential, Close. Change the color of the 4

ema line to black;

Add. Bollinger bands (14, 2);

Add another moving average of 14 Exponential, color red.

Add another moving average of 40 Exponential, Close any color.

Add your Chaos Awesome Indicator, then add your Momentum indicator.

Optional (Momentum Indicators): The Stochastic RSI Oscillator or SS, The Ultimate Oscillator and Support and Resistance

Here's the strategy:Ema Scalping with Momentum indicators

Going LONG:

Enter a long position when the fast black 4 EMA has crossed up through the

middle Bollinger Bands, 14 EMA (red). At the same time, the Chaos and

Momentum should be crossing their zero lines, going up and the StochRSI or SS

should be coming up and crossing it's 50 line.

Going SHORT:

Enter a short position when the fast black 4 EMA has crossed down through the

middle Bollinger Bands, 14 EMA (red). At the same time, the Chaos and

Momentum should be crossing their zero lines, going down and the StochRSI or

SS should be turning down and crossing it's 50 line.

When to take your profit:

Simple...when your Chaos Awesome Oscillator turns a different color!

Here are some screenshots of “EMA Scalping System!” :

In the 1 minute chart :

Trading in the 1 minute chart is not for everyone. If you are not mentally

nimble enough to take profits quickly and reverse your position quickly,

this trading style is not for you.

However, you might like to EMA Scalping System! in the 5, 10, 15 or 30 minute

chart. The action is not as fast and you have fewer trading opportunities,

but you (hopefully!) won't lose money.

You can also try EMA Scalping System! with a 5/15/30 or a 7/17/50 or a 9/19/50

ema moving average combo.

The next chart is “EMA Scalping System!” in a 10 minute chart:

I forgot to put in the Bollinger Bands in this screenshot, but if you

like cleaner simpler look, you can leave them off your chart.

Remember, the circles are entries and the long thin ovals are exits. Notice

how the only time you enter a new position is when the Chaos crosses it's

zero line. This keeps you out of most whipsaws and gets you into the

biggest moves.

Note: the 2nd trade entered short at 21:10 could have been entered earlier at

19:30. You could have taken profit at 22:50 when the Chaos turned green

and then re-entered short soon thereafter at 3:00 when the Chaos again

turned red for more than two bars.

Here's a “EMA Scalping System!” 30 minute chart:

Too many trades to circle entries and exits. If you're able to watch your

position, keep your trailing stop at around 35-40 pips to allow for

retracements without getting stopped out. If you can't watch your position,

keep your trailing stop a little tighter so you can take profit by getting

stopped out.

If you study this chart, you'll see that there were times when you could

have re-entered a trade in the same direction, after the Chaos had turned

color and you had taken profit or you had gotten stopped out. You can re-

enter as long as the Chaos turns color again and the Ultimate Oscillator is

under it's 50 line for a short, or over it's 50 line for a long.

If you notice that each time there was a big move, the Ultimate Oscillator

moved through it's 50 line (dotted red line). The StochRSI line shows both

overbought and oversold conditions and the entries and exits are

supported when it moves up or down through it's 50 area.

Share your opinion, can help everyone to understand the forex strategy.