Hi fellow and want to be traders,
I figured since there are already a few trading systems on this site. I would throw my two cents into the mix and introduce one of my strategies. If it helps you, great!:clap: If you think it sucks, I can live with that too!
To all of you price action traders,(before you start ripping me) I too am a price action trader and can do this strategy by just watching the chart and S/R levels but the indicators I use just give me an indication of WHEN to start paying attention. That way I don't have to watch the screen like a hawk and bore myself into a bad trade
That being said. Here it is:
STRATEGY: Scalping
MARKET: Futures/ Forex
CHART TYPE: Candlestick Tick Chart (1600 to 3600 ticks) is best
STUDIES: MACD, 12EMA, 24EMA
HOLD TIME: Minutes to hours
This Strategy is assuming you're going short near the top of a range. Just reverse the rules to go long at the bottom of a range. Let's begin.
Step 1) Monitor the MACD. When the MACD is BELOW the zero line, and the fast line crosses below the slow line, look at the candlestock chart
Step 2) Wait for the candle to close below both moving averages,(The candle MUST close.) When/If it does, wait for a small retracement (maybe 25 to 50% to get a better price) and immediately place a SHORT order, or place your order at the 24EMA moving average line with a stop 2 ticks above the high of the previous candle. After 2 to 3 more candles, the 12EMA should be touching or crossing the 24EMA and you should be profitable. If not, just exit the trade. (small loss/gain or breakeven)
Step 3) If the 12EMA crosses the 24EMA, It is trending pretty hard and you will most likey get about 4 to 5 or more candlesticks of profit before it starts trying to find it's way back to the 12EMA.$$$ THE END.
Extra Points of Reference To Be Successful With This Play (or any other play):
1) Do not place any trades unless you have a full understanding of support and resistance and how to find them. Place your trades accordingly. Long at support, short at resistance.
2) Any time you enter a trade short, and the market goes 1 or 2 ticks higher than the previous candle, It is probably about to turn. GET OUT!! Wait for another set up. Don't just immediately reverse.
3) Set Your stop loss and deal with it. Watch the chart, not your money(P&L).
Frequently Asked Questions:
QUESTION) What if the market is already trending down, Can I jump in?
ANSWER) Maybe, wait for a pullback to the 24EMA, then go short. Place a stop five ticks above your entry. You should see immediate results (1 or 2 candles). Then aggressively start moving you stop to the breakeven point as you profit. (reverse the rules for a ong play)
QUESTION) What if I don't get immediate results, (1 or 2 candles)?
ANSWER) GET OUT!
QUESTION) How do I manage the trade if it trends?
ANSWER) Move your stop down 1 tick above the previous candle or lower.(It's your money fool!)
QUESTION) Can I add the (special indicator) to help me see things more cleary?
ANSWER) I would suggest NO. Honestly you don't even need the MACD, but it helps give you a better visual of when to start paying attention.
QUESTION) What is the REAL Winning percentage of this trade?
ANSWER) That's not what you should worry about. I suggest you practice this and any other set-up for a few months to satisfy yourself and develop your own win loss percentage. It's safe to assume I do very well with this set-up. The key is how well you manage your money.
QUESTION) What makes this play work?
ANSWER) Getting in at the right price level and extreme selling/(buying for a long play) pressure. Tick charts don't lie. But don't go short at an obvious area of support.
QUESTION) What is "getting in at the right price level ?"
ANSWER) Getting in at a price where your account doesn't go into the negative by more than 2 or 3 ticks.
QUESTION) What makes this play not work?
ANSWER) The same thing that ruins most plays. When all things are done correctly, this play should work. Sometimes though as human beings, we mis-read the market structure of what is happening in the market.(consolidation, distribution, accumulation etc......) Also, BIG PLAYERS can step in and screw things up at anytime. You never really know there motivation to step in to the market (speculation, stop running, hedging etc.....)
Happy Trading
Ektrader
I figured since there are already a few trading systems on this site. I would throw my two cents into the mix and introduce one of my strategies. If it helps you, great!:clap: If you think it sucks, I can live with that too!
To all of you price action traders,(before you start ripping me
) I too am a price action trader and can do this strategy by just watching the chart and S/R levels but the indicators I use just give me an indication of WHEN to start paying attention. That way I don't have to watch the screen like a hawk and bore myself into a bad tradeThat being said. Here it is:
STRATEGY: Scalping
MARKET: Futures/ Forex
CHART TYPE: Candlestick Tick Chart (1600 to 3600 ticks) is best
STUDIES: MACD, 12EMA, 24EMA
HOLD TIME: Minutes to hours
This Strategy is assuming you're going short near the top of a range. Just reverse the rules to go long at the bottom of a range. Let's begin.
Step 1) Monitor the MACD. When the MACD is BELOW the zero line, and the fast line crosses below the slow line, look at the candlestock chart
Step 2) Wait for the candle to close below both moving averages,(The candle MUST close.) When/If it does, wait for a small retracement (maybe 25 to 50% to get a better price) and immediately place a SHORT order, or place your order at the 24EMA moving average line with a stop 2 ticks above the high of the previous candle. After 2 to 3 more candles, the 12EMA should be touching or crossing the 24EMA and you should be profitable. If not, just exit the trade. (small loss/gain or breakeven)
Step 3) If the 12EMA crosses the 24EMA, It is trending pretty hard and you will most likey get about 4 to 5 or more candlesticks of profit before it starts trying to find it's way back to the 12EMA.$$$ THE END.
Extra Points of Reference To Be Successful With This Play (or any other play):
1) Do not place any trades unless you have a full understanding of support and resistance and how to find them. Place your trades accordingly. Long at support, short at resistance.
2) Any time you enter a trade short, and the market goes 1 or 2 ticks higher than the previous candle, It is probably about to turn. GET OUT!! Wait for another set up. Don't just immediately reverse.
3) Set Your stop loss and deal with it. Watch the chart, not your money(P&L).
Frequently Asked Questions:
QUESTION) What if the market is already trending down, Can I jump in?
ANSWER) Maybe, wait for a pullback to the 24EMA, then go short. Place a stop five ticks above your entry. You should see immediate results (1 or 2 candles). Then aggressively start moving you stop to the breakeven point as you profit. (reverse the rules for a ong play)
QUESTION) What if I don't get immediate results, (1 or 2 candles)?
ANSWER) GET OUT!
QUESTION) How do I manage the trade if it trends?
ANSWER) Move your stop down 1 tick above the previous candle or lower.(It's your money fool!)
QUESTION) Can I add the (special indicator) to help me see things more cleary?
ANSWER) I would suggest NO. Honestly you don't even need the MACD, but it helps give you a better visual of when to start paying attention.
QUESTION) What is the REAL Winning percentage of this trade?
ANSWER) That's not what you should worry about. I suggest you practice this and any other set-up for a few months to satisfy yourself and develop your own win loss percentage. It's safe to assume I do very well with this set-up. The key is how well you manage your money.
QUESTION) What makes this play work?
ANSWER) Getting in at the right price level and extreme selling/(buying for a long play) pressure. Tick charts don't lie. But don't go short at an obvious area of support.
QUESTION) What is "getting in at the right price level ?"
ANSWER) Getting in at a price where your account doesn't go into the negative by more than 2 or 3 ticks.
QUESTION) What makes this play not work?
ANSWER) The same thing that ruins most plays. When all things are done correctly, this play should work. Sometimes though as human beings, we mis-read the market structure of what is happening in the market.(consolidation, distribution, accumulation etc......) Also, BIG PLAYERS can step in and screw things up at anytime. You never really know there motivation to step in to the market (speculation, stop running, hedging etc.....)
Happy Trading
Ektrader
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