EMA strategy for Scalper
Hello all, today I am posting one of the best intraday scalping strategy for future and option trader. So, starting with the basics we are going to use the EMA which means Exponential moving average which is one of the best lagging indicator. It helps us in capturing the reversals trade in the market. The most important feature of this strategy is that it provide more than 1:2 risk rewards ratio. To understand it more deeply we have to first configure the software. I have done configuration for trading view you can also do and take benefits from this setup.
As per the screenshot provided, you have to open trading view application either on web or mobile/desktop app and then search for Moving average exponential. Now click on moving average exponential and then move your curser outside the search area. Now in the left corner of screen, click on setting icon and configure length of EMA to 5. EMA configuration setup is done successfully. Now we will discuss some key points which we need to follow while using this setup.
Rules :
- Make candle timeframe to 5 min.
- When candle closing is above the EMA line without touching then be ready as it is alert candle.
- If the next candle break the previous candle low then this gives sign of downtrends. We have to enter in trade and keep stop loss 10 point above the previous candle high and target should be 1:2 or 1:3.
- And if the next candle does not break the low of alert candle we have to wait.
- Trade maximum 3 times a day
- Strictly follow the stop loss and target to be in market for the long run
This setup is backtested for the past three month and results are awesome. Now I will do testing for this setup for 45 days in coming market and post it in my blogs.
Thanks for giving your valuable time. I hope you get the strategy, stay connected to my blogpost as I will update the result of this strategy daily for the next 45 days to check its fruitful outcome. Happy Learning 😊