A Simple Scalping System For M15 Timeframe!
Multiple time frames are like that too. So draw a minor trendline and wait for the price action to break it. You can download Metatrader 4 for free here: The majority of patterns work more efficiently in the main trend direction, the reversal patterns considered to be weaker. The signal is confirmed:
Peculiarities of the candlestick pattern analysis
Doji candlestick pattern or one more Engulfing pattern in the same direction. High of the first Engulfing pattern must not be renewed. We will open a short position at the moment of the next candlestick formation. Stop Loss will be set above the High confirmation signal.
The trading strategy uses candlestick patterns with high reliability level and sliding average for the determination of the current trend. EMA 9 is advised for the popular currency pair trading on M15 timeframe. The entry at the opening of the next candle depends on the market or should be made by a pending Sell Stop order. A good moment for the entry when it comes to candlestick strategy trading in regard to main currency pairs appears within minutes after the European session opening, when the market direction has been determined.
The average duration of the open deal is up to 1 hour. It is not recommended to trade without Stop Loss or enter within first 5 minutes of each hour. The deal should be opened unless: Forex candlesticks analysis comprises of a variety of types, which may involve from 1 to 6 candles. The majority of patterns work more efficiently in the main trend direction, the reversal patterns considered to be weaker.
The risk here is 10 pips. Once we enter into a trade, we will exit when the three indicators simultaneously show a bearish divergence or the EMAs 10 red crosses from above EMA 34 yellow. There is no bearish divergence so we continue in the trade. Always remember as a rule of thumb for the bearish divergence to appear, MACD should be in the positive territory.
When it is in the positive territory we wait for the bearish divergence to appear on it. When it does appear, we then check the Stochastic and the RSI for bearish divergence. If all the above three indicators show divergence at the same time we close the trade otherwise we continue in the trade.
We made pips in less than 24 hours. As you have seen above, we have used the exact same rules for scalping that we use for swing trading.
The only difference is the timeframe. We use M15 for scalping and H4 for swing trading. The only advantage of scalping is the small stop loss. We had been able to enter into a trade with a small stop loss of 10 pips. You will be able to use solid trading methods and have time to analyze the trades. You will still have opportunities for multiple trades within a day. Moves are slower and you can usually see reversals or stalls and have time to react intelligently.
You will still have more trading fees because of frequent transactions. Your entry and exits may not be as precise. The chance to look at longer term trends and make larger amounts of pips. Less likely to get stopped out because of reversals or sudden market changes. You have more time to watch the trade and make wise, less emotionally driven decisions. Not as many trades made, so you will have less transaction costs.
There will be less trading opportunities. Trades will be held overnight so you are subject to those fees. With less trading opportunities you need to make sure your system works really well on the longer time frame, as you will naturally get fewer setups while swing trading. There is no right or wrong, best or worst trading chart time frames to trade on.
Like other smart trading decisions you use the time frame that best works with your trading style and system. Take the time to observe and understand how they all work together, so you can be as successful a trader as you aim to be. Notify me of followup comments via e-mail.