Hello everyone, I carefully read this scalping system presented in 2015 and I must say that I too have been using a moving average system for several years to identify the trend and buy on retracements. Therefore, I would like to show how to improve it using divergences and not just a fluctuation band as presented by the author, to whom I extend my thanks for giving me a couple of ideas.
I promised myself I wouldn't write on the forum anymore because in the end I'm just wasting time but today I decided to break the rules.
1) you need to open 2 charts at a time for a very simple reason: too many indicators reduce the space of the chart while I want to see the price movement in its entirety
2) One chart highlights the divergences, and the other shows the range.
3) Remember that at a certain point, the trend defined by the moving averages will end... but we'll ONLY know it later, so at that point we'll have a loss. This is why you need to match TIME to price... what does that mean? You need to calculate how much TIME is left until the next low, starting from a previous low. LET ME EXPLAIN: how long is a daily cycle in Forex? If I start from a low, IN THEORY, I'll find the next low 24 hours later, but OBVIOUSLY it RARELY lasts 24 hours: the time frame varies between 21 and 27/28 hours. In this 3D scenario, we're talking about scalping: that's why you need to ask yourself how long is an hourly cycle? 60 minutes? Rarely! How long is a 30-minute cycle? 30 minutes? rarely!! How long does a 15 minute cycle last?...etc..etc...it would be too easy...but every cycle, whatever its duration, has a SPECIFIC time window within which it ends
I promised myself I wouldn't write on the forum anymore because in the end I'm just wasting time but today I decided to break the rules.
1) you need to open 2 charts at a time for a very simple reason: too many indicators reduce the space of the chart while I want to see the price movement in its entirety
2) One chart highlights the divergences, and the other shows the range.
3) Remember that at a certain point, the trend defined by the moving averages will end... but we'll ONLY know it later, so at that point we'll have a loss. This is why you need to match TIME to price... what does that mean? You need to calculate how much TIME is left until the next low, starting from a previous low. LET ME EXPLAIN: how long is a daily cycle in Forex? If I start from a low, IN THEORY, I'll find the next low 24 hours later, but OBVIOUSLY it RARELY lasts 24 hours: the time frame varies between 21 and 27/28 hours. In this 3D scenario, we're talking about scalping: that's why you need to ask yourself how long is an hourly cycle? 60 minutes? Rarely! How long is a 30-minute cycle? 30 minutes? rarely!! How long does a 15 minute cycle last?...etc..etc...it would be too easy...but every cycle, whatever its duration, has a SPECIFIC time window within which it ends