Bollinger + EMA Scalping
My understanding of scalping of is short trades, trade that should end within one hour. These trades tend to be high risk and high reward and are known for adrenaline rush. So get ready and lets scalp….
Bollinger Bands – 20
EMA – 12
Time Frame – 5 – 60 min (recommended M15)
There are four set of entry and exit rules to this setup.
Entry/ Exit 1
1 – look for price action going out of Bollinger Band (20)
2- Enter short at first candle opening inside the band
3 – set profit stop at EMA 12
4 – Stop limit just outside of Bollinger band.
1 – Short Entry on open of candle under EMA 12
2 – Profit limit at bottom line of Bollinger Band
3 – Stop Limit at middle line of Bollinger Band
1 – Look for price action going out of bottom Bollinger Band
2 – Enter Long at open of candle inside Bollinger Band
3 – Profit limit at EMA 12
4 – Stop Limit 5-10 pip outside of lower Bollinger Band
1 – Long Entry on open of candle over middle Bollinger Line
2 – Profit limit at top of Bollinger Band
3 – Stop limit at EMA 12
Bounce off setup
Short – Price action bouncing off EMA 12 toward bottom Bollinger line, Entry at candle open with take profit at bottom Bollinger line, Stop limit at middle Bollinger line.
Long - Price action bouncing off EMA 12 towards top Bollinger line, Entry at candle open with take profit at top Bollinger line, stop limit at middle Bollinger line.
Caution – DONOT trade when price action is between EMA12 and mid Bollinger line.
May I ask whats the role of 12 ema, is it in case price bounces off?
Why set it at 12 rather 15 or any period?
EMA is Exponential moving average.
EMA 12 looks at last 12 periods of data, in M15 chart that mean 4 hours of data, with more preference to recent data. For me personally 4 hours data is good amount of data consider before getting into trade but it is personal choice you can use 16 or 21 up-to you.
Why use it because Bollinger Band setting is at 20 which mean middle line is SMA20 so it is more lagging then EMA12. there fore EMA12 can give signals before SMA20.
You are more then welcome to change settings and see which one works best for you.
nice strategy sardar.. i am gonna use it for sure.. gr8 work
nice strategy sardar, thanks.
Thanks, Currently I am thinking of modifying it a better with some confirmations ... so stay tuned..
today i added the system to my chart to see what it does.it really looks interessting! in which way do you want to modify it?
I will use Stoch to confirm strength of trend..
I will try to post it over the weekend
oh yes,thats cool,thank you!