Hey everyone, (first off.. dont be shy to leave a comment.. opinions wanted!)
Going to go over using a leading indicator to scalp some pips!
Our leading indicator (a full stochastic) WHAT!?! let me explain...
Ok,
My initial setup is 2 time frames 5M and 1M
(example given as long.. reverse for short)(also see post #17 after reading this for better entry)
just need a full stochastic (5,3,3) on both time frames..
Entry Steps:
1. Look at 5 minute chart stochastic for over sold signal, or buy signal leaving the oversold area
2. look to the 1 minute chart full stochastic and find a buy signal (doesnt matter where it is (but avoid overbought area)
3. place trade and grab 3 pips!
do you see why its leading? .. heres simple examples..
the 5 minute turning over giving a buy signal would be lagging.. its showing momentum from a few minutes ago and your buying on a lagging signal.. but! we didn't wait for that lagging signal we used 1 minute to give us a leading signal so we bought when momentum was truly building on the 5 minute chart...
Purpose of this thread:
Going to go over using a leading indicator to scalp some pips!
Our leading indicator (a full stochastic) WHAT!?! let me explain...
Ok,
My initial setup is 2 time frames 5M and 1M
(example given as long.. reverse for short)(also see post #17 after reading this for better entry)
just need a full stochastic (5,3,3) on both time frames..
Entry Steps:
1. Look at 5 minute chart stochastic for over sold signal, or buy signal leaving the oversold area
2. look to the 1 minute chart full stochastic and find a buy signal (doesnt matter where it is (but avoid overbought area)
3. place trade and grab 3 pips!
do you see why its leading? .. heres simple examples..
the 5 minute turning over giving a buy signal would be lagging.. its showing momentum from a few minutes ago and your buying on a lagging signal.. but! we didn't wait for that lagging signal we used 1 minute to give us a leading signal so we bought when momentum was truly building on the 5 minute chart...
Purpose of this thread:
- I would like to see if other have same success
- Test this method with other indicators
- and possibly we can build a solid system together.
Overall this method appears to give a high probability edge over scalping pips allowing you to get in and out fast with high momentum as its happening.
Thanks,
Ryan
PS: (see post #17 after reading this for better entry)
heres two charts to give example.. you can see if I tried scalping on 5 min chart I would have been waiting a while for pips..
its not about grabbing lots of pips but grabbing trades with high probability of success for constant gains
example is not exactly the best to show how it saves you from whipsaws but its a decent example..