Simple Scalp Machine

Simple Scalp Machine

Currency Pairs: all
(may be its better to prefer these ones with a little spread)

Time Frame: (30 sec.), M1, M5

Indicators: wellxAMA, Bollinger Band, Pivotal Points

Indicator settings: wellxAMA: 9, 2, 30, 2.0, 2.0, Bollinger Band: 20, 2

Stop Loss: Stop Loss could be set according to the generic well known instructions.

Rules of wellxAMA:
1. As long as the dots are of the same color - the current trend continues.
2. Whenever a wellxAMA dot changinges color - the trend changes to the opposite.
3. If wellxAMA draws a new dot with every new chart candlestick - the market is trending.
4. Whenever a dot is missing - it is an indication of a sideways moving market ahead.
(On the monitor you can see an empty thin red line stretching alongside several candlesticks in a row) - this signalize that a trend is pausing and we may encounter range-bound conditions ahead.
5. What direction to follow when the wellxAMA dots are missing? Stick to the previous trend direction = the previous wellxAMA dot color before the range occurs.
6. If you're in a trade when wellxAMA starts to range, consider tightening your stops. If you haven't started trading - you may want to keep out until the trend is resumed.

Learning to disginguish trend and range bound market condition
One of the methods to distinguish range-bound conditions from trends is to look at the WellxAMA indicator. It allows us to switch our strategy according to the current market situation. If the WellxAMA indicator showing dots of the same color, it means the current trend continues. But if the WellxAMA indicator showing missing dots, it is an indication of a sideways moving market ahead.

Be aware
Despite the nonexistence of the magic formula there are certainly high probability ways of trading the forex market. At FF the most comments are focused on the Method part, but you need to combine Method with both Money and Mind in order to attain success in the trading business.

This thread hasn't the intention to get hold of the Holy Grail, whether it truly exists or not. A lot of traders seek the perfect formula that is capable of predicting with 100% accuracy the future price movements. Want to know where it lies? It only exists in the creative part of the mind - together with fairies and gnomes.

I believe that an important factor of trading success lies in the matching of Method with the trader's own personality and trading style. "Simple Scalping Machine" could be also used with Strategies like "Breakout Fading" or "Breakout Trading" or "Decreased Volatility Breakout" or in trends with steep gradients depending on your own risk appetite and could put in in other trading styles or in confirming trend direction and trend strength with oscillators (e.g. Stochastic, MACD). You can let it simple or could use it in a more complex way.

Time Zone:
http://www.worldtimebuddy.com/?lid=5...147714,1819729

Indicators:
Indicators from GarethC, p.11, #161;

Trade Examples:
Exit Rules, p.1, #3; Trend, p.7, #7 ; Range Bound Trading, p.1, #9; Fast In - Fast Out p.1, #14; Entry Rules - Conservative Strategy, p.1, #15; Trade Management, p.2, #16; What to make when wellxAMA dots are missing?, p.2, #19; Trading The Power Hours, p.3, #35; The Best Times to Trade the US Dollar, p.3, #36; Stop Loss!, p.4, #47; EURUSD, M5, 2011 Mai 05, p.4, #51; Bollinger Band, p.4, #55; What is Risk Management?, p.4, #54; Silver, M1, 2011 Mai 05, p.7, #93; Find hundreds of Metatrader Indicators, p.8, #112; Silver, M5, 2011 Mai 09, p.9. #122; Advanced Level Trading? - EURUSD, M1, 2011 Mai 09, p.9, #125; Trade the wellxAMA with the Pivotal Point - EURUSD, M1, 2011 Mai 09, p.9, #128; Enter Long at every Hammer near the EMA200 - Silver, M5, 2011 Mai 10, p.10. #142; Focus at EMA200 as an Exit Line in this example - Silver, M1, 2011 Mai 17, p.12, #168; Trading with the Pivotal Points, EURUSD, M5, 2011 June 02, p.12, #180;

Forex Articles & Links:
Worldtime/Change Time Mode, p.10, #136; Correlation Table, p.10, #143; Trailing Stop EAs for MT4, p.12, #172 ;

Template & Indicators: see attachment, please.

see #183
2011 June 04
It's time to say Good-Bye!
Enough has been said!

I wish you Success & Happiness!
FXcube

Entry Rules - Concervative Strategy
We open a sell trade when the wellxAMA indicator shows red dots and the dots are of the same color in the previous bar, as it is an indication that the current trend continues. Likewise, we open a buy trade when the wellxAMA indicator shows green dots and the dots are of the same color in the previous bar, as it is an indication that the current trend continues as shown in the following picture.

Entry Rules - Risky Strategy
We open a sell trade when the Candle is crossing the wellxAMA indicator and closed a part of its red body or the full red body at the other side. The confirmation is given when the wellxAMA indicator is signalizing a red dot.

Likewise, we open a buy trade when the green body is at the north side of the wellxAMA indicator and the wellxAMA indicator is given a green dot.

Exit Rules
Trades have to be closed when the wellxAMA indicator dot color changes as it is an indication that the trend is going to change.

Close the trade also when the dot disappears as it is showing sideway market ahead as shown in the following picture.

Start Capital

I wish you success & happiness!

M1, M5 scalping
2011 Mai 04

Trend

Hi Forexcube

What are your rules with this new system ?
Do you trade without SL ?

Thanks

Range Bound Trading
Trade Example
EURUSD, M1, 2011 Mai 04

needs a tad of explanation if you could be so kind old chap

Hi Thierry89

I will point out the rules and the stop loss setting in #2 & #3. Everybody could then transfer it on his own rhythm.

Best regards
FXcube

Yes sure! Have fill out the #2 and #3 now there.

Learning to distinguish trend and range bound market conditions
One of the methods to distinguish range-bound conditions from trends is to look at the WellxAMA indicator. It allows us to switch our trades according to the current market situation. If the WellxAMA indicator showing dots of the same color, it means the current trend continues. But if the WellxAMA indicator showing missing dots, it is an indication of a sideways moving market ahead.

Trade Example
Fast In - Fast Out


London has closed and so I prefere the trades (21:00 GMT +1) Fast In - Fast Out.

The upper line of the Bollinger Band has given me the Exit Signal.

Also you can stay in the trade any longer till the first red wellxAMA dot will appear or the first red body of the candle will close at the other side of wellxAMA.

Trade Example
Entry Rules Conservative Staregy

EURUSD, M5, 2011 Mai 04

Trade Management

Whenever a dot is missing, it is an indication of a sideways moving market ahead. If you're in a trade when wellxAMA starts to range, consider tightening your stops. If you haven't started trading, you may want to keep out until the trend is resumed. The closing of the trade is shown in the following exit rules.

Do you open a trade when the dot changes or a dot appears after a blank?

Seems to me if you just jump in mid trend say after 4 dots, it could go either way.

cheers

Advantages

It allows us to distinguish between trending and range bound market condition, which we can switch the orders (Long, Short, Out of the market) according to the current market conditions.

Disadvantages

The drawback of using this indicator is that a significant move may have already occurred, resulting in the late entry trade position.

What direction to follow when the wellxAMA dots are missing? Stick to the previous trend direction is (=) the previous wellxAMA dot color before the range occurs.

If it seems to be too risky for you stay out and wait for a better entry chance.

Sorry, I wasn't clear. I was asking whether it was better to enter a trade when the first dot or 2 appear. I think you answered it in your other post above.