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Improve a scalping strategy

  • #1
  • First Post: May 25, 2019 5:56am May 25, 2019 5:56am
Hi everyone. I'm getting closer to scalping, and being a fan of moving averages, I'm trying to use them as layers to take advantage of trend pullbacks.
Trade only gbpusd (good volatility, good trends) from 8:00 to 14-15.
In addition to the moving averages (26,50,100,200 periods) use:
the stochastic, going to buy in oversold when the trend is bullish, and going to sell when the price is overbought in a bearish trend.
A trend indicator based on hma, which I find very reliable, is multitimeframe and I use 15 min on a 1m chart.
My tp is about 5 pips and my stop loss is mental.
The first week was not bad, I find only difficulties when the price tends to stagnate too much in overbought / oversold. Do you think there is a way to get a "cleaner" signal?
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSDM1.png Size: 75 KB
  • #2
  • May 25, 2019 6:18am May 25, 2019 6:18am
Hi gian97,

Post a screenshot with the signal that stagnate...

I think the question that you ask is actually about consolidations. That is the oldest challenge of a technical analyst. I doubt that those who know the answer wil respond...

Cheers.
  • #3
  • May 25, 2019 6:23am May 25, 2019 6:23am
Quoting Weyk
Hi gian97, Post a screenshot with the signal that stagnate... I think the question that you ask is actually about consolidations. That is the oldest challenge of a technical analyst. I doubt that those who know the answer wil respond... Cheers.
Thanks for the answer! I am not referring to consolidation, that is easy to avoid, moving averages must be wide between them (and this amounts to a good trend) when they are tight, I avoid trading. Furthermore, it is very difficult for gbp / usd to go into consolidation during active sessions ..
I am referring to when the pullback does not happen immediately, but the price continues to come out and play around oversold / overbrought
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD.uk+M1.png Size: 72 KB
  • #4
  • May 25, 2019 6:48am May 25, 2019 6:48am
Thanks for posting the strategy ,this is the same strategy that Bruce Webb is selling 150 - 300 USD ,just to let you know
  • #5
  • May 25, 2019 8:00am May 25, 2019 8:00am
Quoting scsstnt
Thanks for posting the strategy ,this is the same strategy that Bruce Webb is selling 150 - 300 USD ,just to let you know
I don't know this trader ... but I can say that this is a strategy that can be found everywhere online
And I wanted to talk about it here because maybe someone more experienced already uses this method, and knows a way to improve it (for example a different oscillator or a different filter for the trade)
  • #6
  • May 25, 2019 9:55am May 25, 2019 9:55am
When price is os/ob doesn't mean anything at all. Better wait for a deep pulback acrording the current market sentiment. In many cases this will be between 100/200 mas. Then pa a bit.
  • #7
  • May 25, 2019 10:22am May 25, 2019 10:22am
Quoting coloroffeels
When price is os/ob doesn't mean anything at all. Better wait for a deep pulback acrording the current market sentiment. In many cases this will be between 100/200 mas. Then pa a bit.
Not always. Sometimes to wait for that touch, good chances are lost, in which the trend is very strong and tends to track down on 26/50.
One thing I noticed is that when the price creates large candles in one direction, so with many volumes, it tends to make a pullback of a greater amplitude than when it moves quickly but with normal volumes! Is it perhaps my impression?
  • #8
  • May 25, 2019 10:23am May 25, 2019 10:23am
I also have a thread with similar strategy using stochastic, but fyi there no such thing about overbought or oversold in forex. But I use stochastic to generate signal, filter it with macd, and then confirm by price action. Use price action to confirm the trade, not indicator.
  • #9
  • May 25, 2019 10:32am May 25, 2019 10:32am
Quoting jhonayahya
I also have a thread with similar strategy using stochastic, but fyi there no such thing about overbought or oversold in forex. But I use stochastic to generate signal, filter it with macd, and then confirm by price action. Use price action to confirm the trade, not indicator.
Agree. Stoachastic could be quite good using as a cycle indicator.
  • #10
  • May 25, 2019 10:38am May 25, 2019 10:38am
Quoting gian97
{quote} Not always. Sometimes to wait for that touch, good chances are lost, in which the trend is very strong and tends to track down on 26/50. One thing I noticed is that when the price creates large candles in one direction, so with many volumes, it tends to make a pullback of a greater amplitude than when it moves quickly but with normal volumes! Is it perhaps my impression?
Deep pullbacks are giving better R:R. Meaning also you can wait a bit more for confirmation. Anyway tails also works on m1.
  • #11
  • May 25, 2019 10:42am May 25, 2019 10:42am
Problem is when price is stagnate, do you mean the market is going sideways or in consolidation? You need another indicator to detect market is thin or not. Use bollinger band or MACD.
  • #12
  • May 25, 2019 10:48am May 25, 2019 10:48am
Waiting for pullbacks only on 100 & 200 doesn't seem like a bad idea to avoid false signals.
Hma also seems to me a good confirmation.
Sometimes it seems to me just a little to take 5 pips, but it is also true that on m1 the market is volatile and you have to bite and run away.
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD.uk+M1.png Size: 70 KB
  • #13
  • May 25, 2019 11:08am May 25, 2019 11:08am
My simple solution is to focus more on price action and less on the indicators. Every candlestick tells its own story.
  • #14
  • May 25, 2019 11:09am May 25, 2019 11:09am
I should test how a trailing stop of 5 pips behaves, instead of a fixed stop loss. So as to capture sometimes even 25-30 pips thanks to the pound which is very volatile
  • #15
  • May 25, 2019 11:12am May 25, 2019 11:12am
Quoting corinthia
My simple solution is to focus more on price action and less on the indicators. Every candlestick tells its own story.
Yes ok, we understand
in this method the indicators are used to help each other. The traders use the indicators from the birth of the platforms, please, let's not start with the usual war no to the indicators to the price action.
  • #16
  • May 25, 2019 11:22am May 25, 2019 11:22am
Quoting gian97
{quote} Thanks for the answer! I am not referring to consolidation, that is easy to avoid, moving averages must be wide between them (and this amounts to a good trend) when they are tight, I avoid trading. Furthermore, it is very difficult for gbp / usd to go into consolidation during active sessions .. I am referring to when the pullback does not happen immediately, but the price continues to come out and play around oversold / overbrought {image}
Many traders will not take pullback setups that occur relatively far from longer MAs as the market is more likely to reverse or do a more complex correction from overbought/oversold territory. The first pullback on a trend change is usually the surest one. Raschke uses a 3-10 osc to identify these.
  • #17
  • May 25, 2019 12:19pm May 25, 2019 12:19pm
Quoting Thruline
{quote} Many traders will not take pullback setups that occur relatively far from longer MAs as the market is more likely to reverse or do a more complex correction from overbought/oversold territory. The first pullback on a trend change is usually the surest one. Raschke uses a 3-10 osc to identify these.
What do you mean by oscillator 3-10?
However you are right, I also noticed that the first pullback after the change of trend is the safest one.
  • #18
  • May 25, 2019 1:36pm May 25, 2019 1:36pm
Quoting gian97
{quote} What do you mean by oscillator 3-10? However you are right, I also noticed that the first pullback after the change of trend is the safest one.
I attached a 3/10 oscillator. There are others out there and you can make your own by applying an MA to a favorite oscillator. When the MA crosses the osc zero
line up or down, look for a pullback to buy or sell with price action confirmation.
Attached File(s)
File Type: mq4 3-10 oscillator.mq4   2 KB | 703 downloads
  • #19
  • May 25, 2019 1:38pm May 25, 2019 1:38pm
Hey gjan97,

would you like to post the indicators used on the screenshot as well as your template? I would really appreciate that, your setup looks really interesting to me.

Many thanks in advance and have a great weekend yet.

Greetings
  • #20
  • May 25, 2019 2:42pm May 25, 2019 2:42pm
Quoting Thruline
{quote} I attached a 3/10 oscillator. There are others out there and you can make your own by applying an MA to a favorite oscillator. When the MA crosses the osc zero line up or down, look for a pullback to buy or sell with price action confirmation. {file}
thanks for your contribution, unfortunately it does not seem to me that this configuration is beneficial, the signals are similar to those of the stochastic
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