by StopThescalp: This is one of my most favourite scalping forex strategies. I prefer to use it in 15 min timeframe, but there is no reason for it not to be used in any other timeframe. It can be also used as a standard day trading system when scaled properly.
The system uses morning/evening star formation confirmed by two forex indicators
Exponential moving averages (EMA) 100 and 50. Standard EMA cross, respectively portion of faster EMA relatively to slower will determine trend. All positions are entered in the direction of EMA determined trend.
Stochastic (default setting). Stochastic will help us to avoid entering the formations at the bottom of price wave. Stochastic signal alone works very well in this type of setup. Combination with m/e star improves the signal accuracy even further.
Forex strategy rules
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SELL
EMA 50 must trend below EMA 100 signalizing downtrend. Only short positions must be entered.
Stochastic oscillator rising above 70 line.
Evening star formation formed and closed.
Three candle formation:
1: bullish candle
2. Flat bullish or bearish candle
3. Bearish candle closing below the low of first candle.
We enter immediately on third candle close.
Stop loss: 1 pip above formations high
Take profit: Double the formations range.
BUY
EMA 50 must trend above EMA 100 signalizing uptrend. Only long positions must be entered.
Stochastic oscillator falling below 30 line.
Morning star formation formed and closed.
Three candle formation:
1: bearish candle
2. Flat bullish or bearish candle
3. Bullish candle closing above the high of first candle.
We enter immediately on third candle close.
Stop loss: 1 pip below formations low
Take profit: Double the formations range.
