316# 1 minute time frame Scalping System
MultiTimeFrame Scalping System: 1 minute time frame, 5 minute time frame, 15 minute time frame
Submit by Maximo Trader (written by Daniel Palmer) 11/04/2012
Forex Chart set-up:
1 Minute timeframe:
Bollinger Bands set to 18, exponential close
EMA set to 3, close
MACD, default settings
RSI set to 14
5 Minute timeframe:
Set up just like the 1 Minute timeframe and add:
Fibonacci retracement levels from the most recent high and low,
Pivot points, main and mid-levels,
The 5 Minute timeframe is where I have made some .suggestions.. I.ll get to that a little later.Why Fib #.s and pivots? We all know the significance of these areas. Now, some people will argue that you can plot horizontal lines at random on a chart and price action will act the same way around these lines as they would Fib #.s or pivots and it.s all nonsense.
This is not an exercise on Fib #.s or pivots, if you don.t want to plot them, then don.t.
But, just know that price action can act in a certain way around these numbers. Since we are trading on a 1 minute timeframe I think it.s a good idea to know where these are.
There.s no need to plot them on the 1 minute, just put them on the 5 minute so the 1
minute chart stays as .clean. as possible.
15 Minute timframe:
Set up just like the 5 Minute timeframe
This timeframe is up to you if you want to use it or not. But, for possible higher pip
target entries I.ll have this chart open.just because. I.ll refrain from having any 15
minute charts here because the focus is on the 1 and 5 minute charts.
Chart #1: This is what your 1 and 5 minute charts should look like. Choose whatever
colors you want.
Because people plot trendlines differently, I.ll leave those out of the charts.
OK, the original rules state to go long or short when the 3EMA crosses above or below the middle Bolinger Band as long as the and the RSI is above or below 50 and the MACD is above or below the zero line, and they .line up. or are trending in the same direction
with a long or short entry.
*** THIS IS A 1 MINUTE TIMEFRAME. KEEP PIP TARGETS SMALL! ***
5 Minute chart .reasoning.:
This is what I .see.. By having the 5 minute chart set up also, this can act as a filter to
increase the success rate of your trades in the following manner:
1) When the 5 Minute RSI is above 50, take only longs on the 1 Minute.
2) When the 5 Minute RSI is below 50, take only shorts on the 1 Minute.
Take a look at Chart # 1 again:
In the pictures below 1 minute time frame Scalping System in action.
The white box on the 5 minute shows where the RSI is below 50. The red down arrow on
the 1 minute shows the first entry for a short. But, both the RSI and MACD are sloping
up before the arrow when they should be sloping down. This is where I give more weight
to the 5 minute RSI above or below 50 rule.Chart # 2: some more short entries on the 1 minute.
The first white box has the MACD and RSI sloping up and you may have passed on this
trade with the original rules. The blue box shows a valid original rule entry (without the
5 minute RSI filter) and the last white box with the yellow line through it shows where
the MACD is actually above the zero line. But, look at the 5 minute chart and the RSI,
it.s below 50 during the short entry (red arrows) on the 1 minute.
Chart # 3: long entries.
Again, the yellow line on the 1 minute shows the cross of the 3 EMA up through the
middle BB but the RSI is right at 50 and the MACD is below zero. But, the RSI on the 5
minute chart (yellow line) when the cross happened on the 1 minute chart shows the RSI
is above 50. This is the same for the blue lines as well.
The take home point here:
There may be too many missed entries if you strictly follow the original rules. The RSI
above or below 50 on the 5 minute chart may be a .better. rule to follow for entries on the
1 minute chart when the when the 3 EMA crosses above or below the middle BB
regardless of where the RSI or MACD is on the 1 minute chart.
Share your opinion, can help everyone to understand the forex strategy.
1 minute scalping system