Once again, gbpusd and eurusd is major pairs that we like using scalping on these two kind of pairs. This method only uses macd, stochastic, and ema. Here is more detail below, so keep reading this article. Pair: Eur/UsdTime: 5 minutes
Indicators
MACD: 12,26,1 ( 1 means nothing )
Stochastic: 5,3,3
EMA: 5 to the close
EMA: 5 to the open*no trades during news times
*Risk is set to 1%
*Take profit is random based on market conditions but I’ll usually cash out based on reversal patterns or a cross of the two ema’s
*Trade signals are only confirmed on closed candles/bars.
Buy Signal
a) When the stochastic crosses up from the 20 line and is not overbought;
b) The MACD closes higher than the previous time interval;
c) The Signal candle/bar closes higher bullish;
d) The 5 ema to the close has crossed the 5 ema to the open;
Stop Loss is the low of the previous candle or 20 pips but 20 pip min.
Close when the 5 ema to the close has crossed the 5 ema to the open.
Sell Signal
a) When the stochastic crosses down from the 80 line and is not oversold;
b) The MACD closes lower than the previous time interval;
c) The Signal candle/bar closes lower bearish;
d) The 5 ema to the close has crossed the 5 ema to the open.
Stop Loss is the high of the previous candle or 20 pips but 20 pip min.
Close is based on price action. Don’t forget practice is an important key to getting steady profit in the forex market. 😉
