Fast Scalping System Using The Guppy Moving Averages for Mt4

This is an easy to use system to begin scalping any fast moving market. It uses the Guppy Moving averages indicator for Mt4, and a really short RSI setting of 3. Read on and learn how to use it, and get the files to set up your scalping template.

First of all, we all know that trading with the underlying trend is the best way to scalp a few pips of profit. You can try scalp reversals at tops or bottoms, but in my experience you are opening your heart to failures which will bring out emotions of failure. An emotion which can be dangerous, and create fear for the short term scalper.

Use The 15 Minute Trend For Set Ups

When you set up your charts for this system, pick two or three low spread pairs. This is a scalping system, so we want to be trading high liquidity pairs, with low spreads. This most often means, EURUSD, GBPUSD, USDJPY and you can also try this on major indices like Dax, S&P500 and Dow Jones.

Add the indicators to your MT4 indicator folder, add the template to the template folder. Restart your MT4 platform, then open the charts and apply the provided template.

Set the charts to 15 minute timeframes.

What you need to be looking for is a trend. A good 15 minute direction is signaled by the orange Guppy moving averages being above or below the blue, long setting, moving averages.

Once you identify the direction, watch the RSI 3 for a pullback. The best pullbacks are when the RSI 3 goes down below 30 or above 70.

Look at the Guppy averages, at this point are they squeezing?

See the chart below. The RSI 3 has dropped below 30, the price is squeezing the orange guppys down, thin, to the blue guppys.

When you see this happen, that is when you switch to the 5 minute chart.

5 Minute Entry for the Scalping

Now you have identified a pullback in 15 minute trend, you need to watch for signs of a bounce.

As with any trend, it can end. So wait for a 5 minute bounce. Do not just buy or sell blindly on a 15 minute pullback.

Look at the chart below. The area shows the same 15 minute pullback, the look at the price begin to break above the last few 5 minute price bars.

This is where you enter. Your stop should be under the low recently made, and you should be prepared to move this up to breakeven fast once the trade heads in your direction.

Take profit?

Take what you can. This is scalping. There is no hard or fast rule. The rule you need to follow is move your stop, and try never to close at a loss.

Take 4, 5, 6, 7, or 10 pips. Take what you can, as long as you pull that stop up fast, you will end up winning more than losing.

Yes, you will get stopped out at breakeven a lot, that is part of trading. Yes, you will get occasional losing trades. That is also part of trading.

But don’t let it defeat you. Test it on demo, be fast, be ruthless. Protect your capital with aggression, and the profit will follow.

Here are the files to get started.

Download Here!

from
http://www.daytradingsite.com/fast-scalping-system-using-the-guppy-moving-averages-for-mt4/

Trading Key Reversal Bars and How To Squeeze The Best From Them

Key reversal bars can be interpreted in many ways. Every trader has their own ideas about their significance and how they should be used. Here I’ll discuss some of the best ways to trade them, and the various patterns that you’ll see time and time again on your trading charts.

The problem with key reversal bars is they can often look very similar to an outside day, a pin candle or hammer candle. If you’re a candle watcher you’ll be familiar with those.

Identifying the significant patterns takes more than just eyeballing the formation of the bar, the ones you need to watch are the reversal bars that form at significant highs, lows, support, resistance or after a chart pattern has played out, or is about to play out.

For instance, this is a standard definition of how a key reversal bar looks, the high is above previous day high then it squeezes below the recent lows, and closes up.

If you swap this out to a candle chart display, you can see it looks much like a pin or hammer candle.

Key reversals can also look like an outside day. Here is an example as a bar.

And here is the same bar displayed as a candle, a true outside day.

So how can we define which ones will be worthy of a trade, and which ones not?

Follow on and I will show you some ideas that will help, and ways to detect them.

The Continuation of Trend Key Reversal Bar

You like trading trends? After all the trend is your friend, as they say.

Key reversal bars give you a great way to enter the trend with an obvious place for a stop, and unlimited profits if the trend is strong. That’s great risk versus reward.

In our example earlier I showed you a key reversal that was also like an outside day. This happened whilst there was a clear trend formed, and the price had stalled to consolidate for a while.

Then they key reversal bar appeared. It went up to go higher, which was rejected, then went lower, and wasn’t rejected. To enter you sell the break of the key reversal bar low the next day.

Your stop would be above the previous day high. And you can pull that down to evens when price begins to accelerate, cutting out the risk.

See this example chart.

Reversals at Support or Resistance (Swing Points)

Picking any high or low just won’t cut the mustard. You want to see these reversals either squeeze a new recent high or low that is rejected, or retest the support / resistance and fail.

Here’s some easy to understand examples, and ideas for trading them.

In this example you see on the left of the chart what is commonly referred to as a swing high. These are great patterns to watch for, as key reversal bars will often squeeze toward a swing high (or low) and get rejected as no volume is found.

You can then trade the break of the key reversal bar, moving away from the resistance or support zone. For support, the exact same method applies in reverse.

Lower Risk Trading Reversals

The above method can sometimes make the initial risk quite large. As the outside day bar (which is key) can be long.

If you identify a key reversal, one less risky way to jump on the move, and have a tighter stop is to wait for a hesitation in the trend right after the reversal.

To find those short hesitations you only need to identify an inside day or bar.

And inside day is the exact opposite to the outside day. It means the current day high and low has been within the high and low of the previous day. This signifies that the market is not sure what to do next. But you know, as well as I do, that trends will often continue.

With that in mind, you will wait for an inside day AFTER a key reversal bar, then sell the break to the direction of the trend.

Here is an example of the same key reversal bar as above, but then we wait until a small consolidation forms, look for the break of the inside day.

Conclusion.

These patterns are easy to spot once you begin to look for them. They offer plain as day places to put a stop loss, and allow you to lower your risk fast if they run in your direction right away.

For novices, try using the inside day reversal method, as it is more assured and offers lower risk. Once you get accustomed to finding the reversals, you can maybe try a trade right of the break of one.

from
http://www.daytradingsite.com/trading-key-reversal-bars-and-how-to-squeeze-the-best-from-them/

Using Volume To Help With Trend Trading

When you’re trend trading, you want to be in as long as you can, but in addition you may also want to add to a position as it begins to be profitable. Once you have entered and removed the initial risk from your first stop loss, here is a way to find great levels to move your stop under, and to maybe add small positions into the trade.

Volume Level Strategy

Important levels also have high volume or thin volume. High volume means more activity took place at the price, thin volume usually means price went straight through easy, re-rating to a new value.

When you are trading in a trending move, you may be looking to add to the winning trade.

As price progresses it will always retrace, sometimes not much if there is a lot of momentum, sometimes it will chop around for quite a while until positions have shifted and operators can take it further.

Most traders will simply add on a dip, and then end up negative for a while on the extra trades. This is often unavoidable, but here is a nice method for eyeballing the levels that may offer a better dip to buy.

In all honesty, it’s basically the same as what a volume profile indicator would show you, but by simply using your eyes you can see the levels.

Take a look at the chart below.

See each high volume area highlighted, and subsequent retraces into the volume (or value) areas see a bounce.

While the price kept moving up on this 1 hour chart, during the trend price retraced intraday several times to re-test the previous days value area. This is the area where the most volume took place.

This can be a good place to watch and be ready for a bounce in a smaller time frame, and get a lower risk “add on” to your trend trading.

You also have a place to move your stops. Directly underneath each “value” area.

This allows your trade to grow with the trend, and if it decides to fall through a volume area, then it’s probably best to be out anyway.

What About Forex and Volume?

When people trade forex with a broker that doesn’t offer direct access to the market, then any volume you see will be broker tick volume (more often than not).

While this is not “true” volume, it’s still a great guide to where the most activity took place.

Tick volume counts the amount of “ticks”, or price changes, during any timeframe bar.

So, if the area has high tick volume, then quite obviously a lot of activity was happening there. You don’t get an indication to the size of the trades (as you would with real volume), but you’ll know that this is where most of the trading occurred that day.

It works on forex also.

Here you can see the tick volume areas, and the small re-tests price made into each one, before falling further.

Take some time out and add the volume to your charts, if your style is trend trading over a longer term, or swing trading, it can offer great places you reduce risk and increase position size.

from
http://www.daytradingsite.com/using-volume-to-help-with-trend-trading/