A friend introduced me to this very profitable system and thought I would share it with the intent of refining it and further developing this into an even better system. It is a very simple (K.I.S.S.) scalping system based on the 5 min time frame using the 15 min time frame to confirm. We like to trade in the direction of the trend.
You will need 2 charts open. One on the 15 min TF with the CCI8 indicator using a CCIperiod setting of 6. This will help confirm trend direction. If CCI is red we take shorts only. If it is blue we take longs only. (Above or below zero line)
Now have a 5 min chart open with a Stochastic set at 5/3/3; low/high; exponential. If on the 15 min the CCI is blue (looking for longs) and the stochastic descended below the 20 line and is rising up above the 20, that is a safe entry. Oposite is true for shorts using the 80 line.
A high probable entry would be to take trades when the stoch went below 50 line and is turning back up assuming the CCI on the 15 min is still blue (above the zero line). Again, oposite is true for shorts.
As for Stops and TP, I use a stop of 15 pips and I take half my trade out at +10 and then let the other half ride using a manual trail of about 15 pips.
I trade the EURUSD pair only at the moment but the system should work on almost any pair because it uses the power of the trend to make pips.
Now to explain the charts, the first 2 charts are a high probable power trade confirmed on the 15 min. The next 2 charts is a safe power trade confirmed on the 15 min.
If some one feels inclined to code an EA that gives you an alert w/email so you can still trade manually, feel free.
You will need 2 charts open. One on the 15 min TF with the CCI8 indicator using a CCIperiod setting of 6. This will help confirm trend direction. If CCI is red we take shorts only. If it is blue we take longs only. (Above or below zero line)
Now have a 5 min chart open with a Stochastic set at 5/3/3; low/high; exponential. If on the 15 min the CCI is blue (looking for longs) and the stochastic descended below the 20 line and is rising up above the 20, that is a safe entry. Oposite is true for shorts using the 80 line.
A high probable entry would be to take trades when the stoch went below 50 line and is turning back up assuming the CCI on the 15 min is still blue (above the zero line). Again, oposite is true for shorts.
As for Stops and TP, I use a stop of 15 pips and I take half my trade out at +10 and then let the other half ride using a manual trail of about 15 pips.
I trade the EURUSD pair only at the moment but the system should work on almost any pair because it uses the power of the trend to make pips.
Now to explain the charts, the first 2 charts are a high probable power trade confirmed on the 15 min. The next 2 charts is a safe power trade confirmed on the 15 min.
If some one feels inclined to code an EA that gives you an alert w/email so you can still trade manually, feel free.
Attached Image(s) (click to enlarge)
Attached File(s)
I could post another chart with the other one deleted so you may compare if you wish.
