Momentum, Pullback, Engulf
Hello to all,
I am going to share with you my scalping system. Its very simple and kind of similar to my 45mom system but much simpler. The basic concept is taking trades of the pullback from current momentum.
I use the minute chart, Macd and Engulf pattern.
When price gains bullish/bearish momentum by stretching the Macd bars far enough, then wait for pullback, once the PB occurs then look for the first Engulf candle as an entry point, thats it.
(Important point; Your Engulf entry point must be inside Macds momentum direction.)
Up to you!!... Ideally getting 10 pips is a good target. You can take less or more based on what you see off the PA.
You can set your stop right above or below the PB end point, which usually is between 4 to seven pips. Your RR would be 1:1 at worst in most cases.
Advance level would be having NO Stops by looking to give the trade time and extra chances to fall into profit for you and avoiding premature exit loss. If it goes against you by totally shifting the other way then you look to exit off the PB for lower damage. I know this part raises issues but trust me its the better way to trade and better results in the long run.
Best time to trade is London first a few hours and the u.s overlap... but anytime that you see a good solid momo move its good to go.
Trade small, look for best patterns on multiple crosses and repeat the same thing over and over again.