Most Profitable Signals
It is a well known fact that Scalping is the most profitable strategy but to trade it, one needs to know certain important rules because the result of each trade depends on them. This is a strategy with accurate entry points, large profits and minor stop-losses. According to Scalping, it is possible to take 200 points during one trade; when dealing with stop-losses only 30 points, that’s why this trading system is considered to be the one the most profitable among all.
Moreover, it is the most precise strategy as during the testing there were no losses and indicators were not showing wrong information. The one and only simple rule in this strategy is a complete coincidence of all signals of all indicators.
Indicators of the Trading System
Before starting trading with this system, it is needed to set up the following indicators:
- EMA – for purchasing a trader needs to wait for moving averages EMA 5 and EMA 8 to cross from bottom to top. For selling, this EMA crossing should be on the contrary (from top to bottom);
- Heiken Ashi – this indicator represents Japanese candles which demonstrate general Forex tendency. If a blue colored candle appeared on a chart, then 90% you might expect a bullish When a red candle appears then it means bearish trend. Before following indicator’s signals Heiken Ashi, it is necessary to wait until the closing of a signal candle;
- Momentum TV – this particular indicator shows market’s “behavior and mood” at this exact moment – either bullish or bearish. When an indicator’s line will cross a zero point from top to bottom it is time to think about buying. For selling, traders should wait for crossing at 0 level from top to bottom;
- QQE – the basis of this indicator is index power which demonstrates very complicated and difficult math calculations with different periods. In the Scalping trading system pattern it is represented in a form of arrows. If a red arrow appears, traders should consider selling whereas blue arrow gives a signal about purchasing;
- Dinapoli Stochastic – this indicator is very similar to Stochastic Oscillator yet with reduced number of false signals. That’s why this version is considered to be much better. Traders should sell when a blue line crosses red line from top to bottom and vice versa.
Trading System Characteristics
Trading using Scalping strategy or MACD trading strategy should be done with the help of volatile currency pairs: EUR/USD, GBP/USD etc with a recommended time-frame – M15. Additionally to that always remember that a risk of every trade shouldn’t be more than 10% from your deposit.