Better Forex Trading System's

Forex trading system "Scalping using EMA10"

Learning to Scalp using 3 candles with EMA10

This strategy involves the use of 3 candles with EMA 10 to scalp 10 pips on half of the open position and trail the rest of the half open position to grab as many pips as possible. This simple scalper trading method has been use for the past couple of months with consistent success but have to sit at the computer and watch for the trading to setup. We just need to grab a few pips a day, repeat and hold on to those trades, while building our trading account up to a serious amount. Trading does not have to be difficult, time consuming, complicated, and stressful in order to be profitable, rather, it should be simple, and consistently. In trading, as in many other things in life, complex isn’t always better, many times it is useful to keep things simple.

Details

Categories: Technical, Scalping
Timeframes: 5 Minutes
Currency pairs: ANY
Trading sessions: ANY

Indicators used

Moving Average
Period: 10
MA method: Exponential
Apply to: Close

Entry rules

We open a sell order when:
1) There are at least three candles closed below EMA 10
2) Those three candle bodies and wicks must not touch the 10 EMA line
3) The sum of candle bodies must be 10 pips or more
Vice Versa, We open a buy order when:
1) There are at least three candles closed above EMA 10
2) Those three candle bodies and wicks must not touch the 10 EMA line
3) The sum of candle bodies must be 10 pips or more
The following picture is an example of an buy order.

Trade management

Take Profit at 10 pips for half of the open position and move the rest to break even, trail 10 pips afterwards. You may ride the trend for as long as each candle opens in the direction of the trend.

The stop loss should be set 10 pips above or below the highest or lowest candle wick. As an example, when long look for the lowest candles body or wick to the 10 EMA line add (or subtract) 10 pips to that to get your stop loss.

Exit rules

The trade will exit by itself after we set the Stop Loss and the Take Profit, according to the rules in the trade management.

Advantages

It is a scalping method, which will give faster result as compared to swing trading.

Disadvantages

This strategy does not work well when the trend is exhausted soon after the third candle.