Scalping Trading System with RSI MA Cross filtered For MT4
The Scalping Trading System with RSI MA Cross filtered For MT4 is an intraday trading strategy. As the name suggest, the scalping with RSI MA filtered trading system makes use of the RSI as the main indicator. Following this, we also have the C2R wavesmooth indicator and the MACD flat trend indicator. And finally, the pivot levels on the price chart.
The pivot levels are used as points of entry and exit to you trades. The signals are derived from the RSI MA filtered indicator. This is the main indicator that determines when you should go long or short. Following the RSI MA filtered oscillator, the next is the MACD filter. Depending on the market conditions, you can also choose to use the MACD filter as an additional confirmation indicator for your trades.
But this is a bit subjective as sometimes, the MACD might be lagging and will not confirm to the market conditions as depicted by the RSI MA filtered oscillator. But having said that, the RSI indicator does a pretty good job in signaling the direction of the trends in the market.
You can use the scalping with RSI MA filtered trading system across different forex currency pairs. But remember that this is used on the intraday charts. Therefore, you might need to pay attention to the spreads. We recommend that you use the scalping with RSI MA filtered trading system only on major forex currency pairs as they tend to have lower or smaller spreads compared to cross currencies or even exotic forex currency pairs.
Let’s dig deeper into how you can trade using the scalping with RSI MA filtered trading system on your MT4 trading platform and how you can manage your positions in the market.
Scalping with RSI MA filtered trading system – Long positions
The RSI filtered indicator is your main indicator that you should be looking at. Therefore, wait for the blue line to cut across the red line. This suggests that the trend is up and prepares you to take a long position. Following this, we have the wavesmooth indicator which is also plotting green bars. And as can be seen from the example of the long position chart above, the MACD is also green.
Therefore, we have a perfect set up here. We take a long position on the open of the next candlestick session. You could also use the pivot lines to set up a pending order. The same applies for take profit levels as well.
Use the pivot lines to set up your take profit levels. You can breakdown your positions such that you can book profits at multiple pivot levels to the upside. For setting up your stop loss, use the bar’s low point as the area to set your stop loss. In some circumstances, you could also use the lower pivot levels. However, note that this will increase the risk you have on your trade and could also diminish the profits because of such a set up.
And if the market turns choppy, you might end up losing a lot more. Therefore, aim for consistency in the markets when trading with the scalping with RSI MA filtered trading system.
Scalping with RSI MA filtered trading system – Short positions
The short position set up is also quite straight forward with the scalping with RSI MA filtered trading system. Firstly, we need to have the RSI MA filtered indicator turning bearish. This occurs when we have the red line cutting across the blue line. When this happens, the RSI MA filtered indicator is telling you that the markets are bearish.
After the RSI MA filtered gives you the alert, the next step is to look for the smoothwave and the AMCD indicators. Ideally, you should have both these indicators in sync and confirming that the trend is indeed down. Note that this might not happen all the time. At some point one of the two indicators might lag and you will not get the perfect signal.
This is a bit subjective as you will be able to know when to go short even if one of the two wavesmooth or MACD indicators are not in sync. So a bit of practice is required when trading with the scalping with RSI MA filtered trading system.
Once we have our short set up lined up, we place a pending sell order at the pivot line. If price is trading quite far away from the immediate pivot line, go short on the open of the next candlestick. Set your stop loss to the nearest high or at the nearest pivot point above your short order.
For take profit, you can set it initially to the immediate pivot level from your entry. If the pivot line are too close to each other, you might want to adjust your positions such that you are aiming for a good risk to reward set up.
Is Scalping with Scalping Trading System with RSI MA Cross filtered For MT4 good for trading?
The scalping with RSI MA filtered trading system is quite effective for scalping the markets. But considering the fact that this is a scalping strategy, you will need to constantly monitor the charts if you want to make consistent money day in and day out.
Therefore, the scalping with RSI MA filtered trading system might be out of reach for swing traders. Also, note that given the way this strategy works, you might be cautious when the markets are trading flat or when volatility is high. Prices can tend to chop around the pivot levels and this is something to bear in mind. In fact volatile and choppy markets are two things that work against the scalping with RSI MA filtered trading system.
But having said that, under regular conditions, the scalping with RSI MA filtered trading system is quite good in the way it works. It can bring you consistent profits over time and is also relatively light weight when it comes to impacting the performance of your MT4 trading terminal.
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