Bazza's Scalping method

OK here's a few more criteria that I have found to help weed out bad trades.

For a short trade
Look for hammer/reverse hammer/hangman/reverse hangman
The above should have candles on both sides with lower highs and lows
The middle candle which we will call reversal candle should be touching outer band of Bollinger Bands. Candle to the right of reversal bar should preferably be bearish. Body of reversal bar should not be touching 3EMA.
Open trade on close of bar after reversal bar.

FoxyFX

OK done lots of backtesting with this method and I think Bazza is actually referring to "Entire candle" when he sais "body of candle" My results show that just looking at the body of the candle outside 3EMA gives too many false signals. Look at his original chart posting. There are heaps of reversal candles with bodies outside the 3ema.
I also use this method with bollinger bands. I found RSI and Williams %R to be completely useless. They can be oversold on both a buy signal that works and one that fails.
Look for a hammer/inverted hammer with entire candle not touching 3EMA that is also the first or second (third is risky) candle to hit a flat Bollinger Band. Reversal candle is Bullish if going long with 2 (or better still 3) bearish candles before it.
I go for 8 pips plus 3 pips spread(11 pips in total) limit and 12 pips in total (includes spread) stop which is a much better R/R than Bazza sugests.

I have also included a system which can be used to give signals on a Visual Trader demo account. You still need to confirm the trade by looking for the 2 or 3 previous bearish bars and 4th reverasl bullish bar for a long. Your thoughts welcome.

P.s. The attached file also shows candles with only body not touching 3EMA you can turn that off in "properties"

Good Luck

Bazza,

I am not sure whether this thread is still active >
I happen to run through this thread and dont understand on "Trade with the Trend." that you mentioned?
Is it we refer to M5 chart or refer to higher timeframe chart?

please explain.

I have done a lot of back/forward testing of this method and it is in my opinion not worth pursuing. The trend is forever changing and there is much debate about following a tend in forex. Many folks claim the trend it their friend and jump on for the ride only to find the trend is not their friend and changes direction
Their are some good systems about but steer clear of baglovino or whatever its called. Another dud in my opinion. The macD histogram guy seems to have done his research and I have used parts of his system to build my own

Can you point me in the direction of this "macD histogram guy". Thanks.

This looks interesting....thanks.

Hi, What are the settings for the 3 emas pleease?

Holy smokes, you dug up a 15 year-old thread, and seeing your question you probably haven't even read the initial post...

There's no 3 EMAs, there's just an EMA with a period of 3, so no settings. Or if you want, the setting for the EMA is 3. So a period of 3. And it's an exponential moving average. Because it's an EMA.

thanks, I hadnt noticed the age of the thread