Stochastic With 3 Moving Averages Forex Scalping Strategy For MT4
The Stochastic With 3 Moving Averages Forex Scalping Strategy For MT4 is a unique strategy that uses unusual settings of the stochastic and the exponential moving average. For the stochastic settings, the strategy uses 5, 3, 3 in a sequential number.
Note that these sequential numbers are a part of the Fibonacci series. 144 EMA, 89 EMA, and 21 EMA are used as the 3 moving average to create this unique scalping method. To this system, we will also be using the SHI Silver Trend indicator. But if you are good at using the exponential moving average, you won’t have to rely on the trend indicator.
The 144 EMA will be at the bottom when the trend is down. Above the 144 EMA, we will get the 89 and 21 EMA. On the contrary, 144 EMA will be at the top in the bearish trend. Below this band, we will get the 89 and 21 EMA. The traders Based on the cross over (bullish and bearish) you have to get ready for the trade setups. The stochastic indicator which has a green signal line will be used to determine the quality of the trade signals.
After the bullish cross over, wait for the price to drop towards the 89 EMA. At this level, we can execute the long trade with 10 pips stop below the band and make a profit of 10 pips. The second buying place its 89 EMA. Place the buy limit order at the 89 EMA. The stops will be 25 pips and the take profit is 50 pips. The third buying place is the 144 EMA and this level is traded by the position and the conservative traders. Execute long trade with the price action setup and set the RR ratio 1:5 at least.
The short trades are taken when the trend is bearish. The first sell is set to the 21 EMA. SL and TP for this execution point are 10 pips. The second sell order is the 89 EMA. SL is standard 25 pips and the take profit 50 pips. If the price manages to test the 144 EMA, you can short the PA patterns. But analyze the risk to reward ratio as it will determine the profit potential. The maximum risk you can use in this system is 2% of the account balance.
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