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Bazza's Scalping method

  • Post #1
  • Quote
  • First Post: Feb 11, 2007 7:51pm Feb 11, 2007 7:51pm
I discovered a system after looking at systems that use a lot of confusing indicators. I call all these indicators "dancing girls"
Here is my system, it works on any time frame, however, to scalp, I like 5 min charts.
Bring up a 5 min candlestick chart, then overlay your chart with a 3 EMA.
What to look for: Body of the candle OUTSIDE the 3 EMA.
The candle must be a reversal candle, & prefererably, a long wick (hammer) to go long, inverted hammer to go short.
Enter on close of next candle ( a Bull candle can turn into a bear candle) so, wait for the close.
Stop Loss is 10-15 pips away from the tip of the reversal candle.
Set a TP of 5 pips.
Trade with the Trend.
During the Asian session or Late US sessions, the market usually goes sideways, so you can trade dips & rallies.
Simple, 5 pips 4 * a day = 20 pips, = you are rich,
Bazza
Attached Image
I'll let ya know.

I love scalping methods, no patience and all, y'know.
very simple system.i like it.but is it prefer apply on low spread pairs?what is the winning ratio?
Quoting bazza
I discovered a system after looking at systems that use a lot of confusing indicators. I call all these indicators "dancing girls"
Here is my system, it works on any time frame, however, to scalp, I like 5 min charts.
Bring up a 5 min candlestick chart, then overlay your chart with a 3 EMA.
What to look for: Body of the candle OUTSIDE the 3 EMA.
The candle must be a reversal candle, & prefererably, a long wick (hammer) to go long, inverted hammer to go short.
Enter on close of next candle ( a Bull candle can turn into a bear candle) so, wait for the close.
Stop Loss is 10-15 pips away from the tip of the reversal candle.
Set a TP of 5 pips.
Trade with the Trend.
During the Asian session or Late US sessions, the market usually goes sideways, so you can trade dips & rallies.
Simple, 5 pips 4 * a day = 20 pips, = you are rich,
Bazza
hi bazza,thanks for sharing oyur system but i am not too sure of your explanation,can u pls elaborate abit on your system and perhaps with more charts,thanks!
Can you place some more charts please.
All things are difficult before they are easy.
the key is the BODY of the candle must be outside the 3 EMA. For further confirmation you can use an overbought/oversold indicator such as RSI 9 hooking back over or Williams % R. Just back test & have a look for yourself. I found this system from someone I paid big dollars for & he called thsi 3 EMA his "secret" indicator. Well, a bit of experimenting soon revealed his "secret" was a 3 EMA,
Bazza
here is an example of a counter trend trade, go for 2-3 pips,the key is speed, just get in,
Attached Image
Bazza,
which candle close to wait for, the reversal candle ? or the candle after the reversal candle ?

Quoting bazza
Enter on close of next candle ( a Bull candle can turn into a bear candle) so, wait for the close.
Quoting bazza
the key is the BODY of the candle must be outside the 3 EMA. For further confirmation you can use an overbought/oversold indicator such as RSI 9 hooking back over or Williams % R. Just back test & have a look for yourself. I found this system from someone I paid big dollars for & he called thsi 3 EMA his "secret" indicator. Well, a bit of experimenting soon revealed his "secret" was a 3 EMA,
Bazza
candle tail was part of the body?can we entry when the tail is still touch 3EMA?
How long have you been using this method ? I have found that scalping in this manner usually ends up biting me in the wazoo0000000
the key to this system is simplicity- preferably a long wick, the hammer (long) or inverted hammer (short) should be a reversal candle, eg, if going long, you should have a couple of bear candles preceding the move (orange) then a blue (bull) hammer. You really just need to backtest it for yourself, however, it is a highly successfull method.
Quoting bazza
the key to this system is simplicity- preferably a long wick, the hammer (long) or inverted hammer (short) should be a reversal candle, eg, if going long, you should have a couple of bear candles preceding the move (orange) then a blue (bull) hammer. You really just need to backtest it for yourself, however, it is a highly successfull method.
hi bazza,can you post more example with the graph as well.thanks
Well this was about the easiest back test I've ever done. Put in my first trade, got in reversal in railroad tracks on the outside of the 3 EMA, don't think it worked. It immediately went back up a couple of pips but the succeeding fallout is probably going to take out my stop. If it does I think I'll do a hammer next time.
  • Post #14
  • Quote
  • Edited 11:46am Feb 16, 2007 11:26am | Edited 11:46am
You buy on "hammer"-candle close, right ? Not on the following candle close ?
And what do u mean by "Trade with the trend"? I think u're trading here against the trend..
Or maybe u're taking in consideration longer timeframe trends ?


Thanks !
Looks interesting - anyone trading this Live?
Errr.... I want to post here an interesting system. I hope you don't mind. I thought this can work about impove this system. Anyway:

Add 10 sma HIGH
and 8 sma LOW

When the bar opens above 8 sma, you buy
When the bar opens below 10 sma, you sell

But you need to understand how it works this system. I'm attached an example picture, you'll see how it works.

http://www.forexfactory.com/attachme...1&d=1179052335
Attached Image (click to enlarge)
Click to Enlarge Name: 7.jpg Size: 56 KB
asliok,

i am not sure i understand your system corectly. so please explain it a little bit more. maybe with the help of more charts.

i am already backtesting bazza`s method which he was so kind to share with us. and i must say..... it works great on futures (3 and 5 minute charts of ER, ES and YM).
Hi Vathris,
Thanks for your mention on it working on futures, I am tending to head that way myself, especially forex futures. Forex brokers screw you with the pip spread, & I am convinced that scalping on 5,15, 30, even hourly charts is the way to go. Re a forex broker I am going to close my account with is OANDA, used to be good, now they are CROOKS! went to short the GBP the other day & they immediately widened their sread to 30 pips on a major news announcement!

That said, will be trading the forex futures very soon, but just watch liquidity outside CME hours, that means up all night for me in Australia.

Re my system, I also use RSI set at 8, & look for O/B & O/S, body of the candle outside the 3 EMA & a REVERSAL CANDLE! such as doji, hanging man, hammer, inverted hammer, shooting star.
& I just discovered this the other night- bring up Stochastics & MACD on hourly charts, look for divergance! DO NOT TRADE AGAINST DIVERGANCE! powerfull stuff!


You will miss alot of trades, but rather catch a winning trade rather than a losing one. 20 pips a day is easily achievable with a GOOD broker, not thieves like OANDA,

Cheers,
Bazza
Interesting method, may I know how long have u try this system? and which pair is work for the system? Can we use it with a pair that have 4 points spread?
hi bazza, i 'll try to use your system and show the result later
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