One Simple “Forex & Stock” SCALPING Trading Strategy to MAKE YOU RICH

Forex and Stock EMA SCALPING Strategy – This strategy has been carefully crafted to offer you a competitive advantage in the market and boasts a pretty impressive win-rate ratio.

Alright, without further ado, let’s get straight into the strategy!

In executing this scalping strategy, I’ll be harnessing the power of three Exponential Moving Average (or EMA) indicators:

• The 34-period EMA,
• The 68-period EMA,
• and the 136-period EMA.

This combination forms the cornerstone of my trading approach, drawing from years of experience navigating the dynamic markets.

My intention is to apply these indicators on a one-minute time frame chart, or a 5-minute time frame chart, a choice informed by the strategy’s responsiveness to short-term price movements.

Drawing from my experience as a trader, I have found that this combination of EMA periods works exceptionally well for my trading approach. While these periods might not enjoy widespread popularity among novice traders, I firmly believe that the secret techniques and configurations often yield the most favorable results. Therefore, this is the best strategy I am opting to share with you.

• Download “TraderVersity-EMASCALPING” (Zip/RAR File).
• Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
• Copy the “TraderVersity-123System.tpl” file (template) to your Metatrader Directory …/templates /
• Start or restart your Metatrader Client.
• Select Chart and Timeframe where you want to test your forex system.
• Right-click on your trading chart and hover on “Template”.
• Move right to select “TraderVersity-EMASCALPING” trading system and strategy.
• You will see the “TraderVersity-EMASCALPING” is available on your Chart.

The initial phase of this trading strategy entails discerning the prevailing market trend, a critical determinant of our trading decisions.

This task is accomplished through a thorough examination of the Exponential Moving Average (EMA) lines. To ascertain a clear trend direction, we seek alignment among all three EMA lines, with each exhibiting consistent movement in a unified direction.

Ideally, these lines should be visibly spaced apart, reflecting a robust and sustained trend momentum. We steer clear of markets characterized by erratic EMA movements, indicative of a sideways or ranging market environment. Such conditions pose inherent challenges for scalpers, as price movements lack clear direction and stability.

Moreover, we exercise caution against entering trades in markets where EMA lines intersect, as this often signifies indecision and potential reversal signals.

Our overarching goal is to identify markets where all three EMA indicators harmoniously align, reinforcing our confidence in the prevailing trend direction and enhancing the probability of successful trade executions.

You should seek setups where the candle completely sits outside the 34-period EMA.

Once this setup is identified, our focus shifts to pinpointing the precise entry signal. This occurs when the price retraces and concludes a session below either the 34-period EMA or the 68-period EMA.

As you can see in this chart (below), an uptrend scenario, denoted by upward-sloping EMA lines and candles positioned above them, we patiently await a price retracement, signaling an opportune entry point.

Subsequently, our attention turns to the price’s behavior in relation to the 34-period EMA, or 68-period EMA. Upon its return to this level, we execute a buy position, capitalizing on the potential resumption of the prevailing uptrend.

However, if the price drops significantly and closes below the 136 period EMA, we will have to be more careful with all existing setups. This is because the market has great potential for trend reversals, so it requires a careful approach to avoid undue losses.

By diligently adhering to these sequential steps and remaining vigilant of market dynamics, we position ourselves for informed and strategic trading decisions, enhancing the likelihood of favorable outcomes in our scalping endeavors.

In this chart, we can identify a BULLISH TREND, evident from the three upward-sloping EMA lines, with all candles positioned above them. Next, we await a pullback towards the 34-period EMA or the 68-period EMA. And remember, during the pullback, the price should not surpass the 136-period EMA.

So, once the pullback occurs, we wait for the price to return to the 34-period EMA. When that happens, we can initiate a BUY position. Then, we set our profit target and stop loss levels. And, as you can see, the price reaches our profit target, making this trade ultimately profitable.

• Stop Loss
  You should always secure your open trades with a stop loss order. Although the success rate of these patterns is relatively high, there is never a guarantee that the trade will work in your favor. Your stop loss is below the 34-period EMA.

In this chart, we can identify a bearish trend or downtrend, evident from the three downward-sloping EMA lines, with all candles positioned below them. Next, we await a pullback towards the 34-period EMA or the 68-period EMA. And remember, during the pullback, the price should not surpass the 136-period EMA.

So, once the pullback occurs, we wait for the price to return to the 34-period EMA. When that happens, we can initiate a SELL position here. Then, we set our profit target and stop loss levels. And, as you can see, the price reaches our profit target, making this trade ultimately profitable.

So, that’s how we trade scalping with this triple EMA strategy. However, it’s important to remember that there’s no Holy Grail strategy with 100% accuracy. My suggestion is to conduct a Backtest first before you utilize this strategy.

Now, I’ll give you 5 quick tips to help you become a better scalper.

• The first tip is, you don’t need to take every trade at once. When scalping, you’ll encounter situations where you receive many entry signals. If this happens, you don’t need to take them all. Only take positions that you can manage because handling multiple trades at once can be very difficult, especially when scalping.
• The second tip is, don’t risk too much of your capital. My advice is to never risk more than one percent of your capital per trade. I recommend risking only 0.5% on each trade.
• The third tip is knowing when to stop trading. Because when scalping, we often don’t realize that it can consume hours of our time. And the longer it takes, the more tired we become, and we start to lose focus. So, it’s crucial to know when to take breaks. Personally, I limit my scalping time to a maximum of 4 hours per day. You don’t need to worry about missing entry signals as there will always be other opportunities in the market.
• The fourth tip is to ensure you use a broker with low spreads. This is essential because when scalping, every pip counts. If you use a broker with wide spreads, you’ll struggle to make a profit.
• And the final tip is to focus on one market only. When scalping, entry signals can appear very frequently. So, you don’t need to worry about missing entry signals from other markets. Just choose one market that you feel comfortable with and stay focused on trading it.

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