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427# EMA's Price Action Scalping System

EMA's with ADX Trendline indicator and Fibonacci Pivot

 

Submit By Jeffer 02/05/2014

 

EMA's price action scalping system is trend following based on the crossover of the exponential moving averages, ADX and the breakout of the high and low points (support and resistance).

 

1. Average Directional Index (ADX 14)

2. Exponential Moving Average 14 (EMA 14)

3. Exponential Moving Average 21 (EMA 21)

4. Exponential Moving Average 40 (EMA 40)

5. Trendline Indicator (sf_trend_line)

6. Fractals or Swing High/Low

7. Fibonacci Pivot Points

 

1. On the 15 Minute chart, check for any of the following signals:

a. The price is above the 21 period exponential moving average (dark orange or

red).

b. The 14 period moving average (magenta or purple) is above the 21 period

moving average. This indicates that the trend is an uptrend on the 15 Minute

timeframe. At times, I also use 5 and 8 period moving averages. They should be

above the 21 period moving average too.

c. The ADX is sloping up and is above the 30 level. This indicates that the uptrend

momentum is gaining strength.

d. The trendline indicator is slanting up. This also indicates that the trend is an

uptrend on the 15 Minute timeframe..

2. Go to the 1 Minute chart and check for the following signals:

a. The trendline indicator is slanting up, which indicates that the trend is an uptrend.

b. The ADX is sloping up or is above the 30 level.

3. Enter a buy trade on the 1 Minute chart when any one of the following conditions

occur:

a. The price breaks a resistance level or a previous swing high on the 1 Minute or

15 Minute timeframes.

b. The price bounced off from the lower trendline on the 1 Minute or 15 Minute

timeframes.

c. The price pulled back to the 21 EMA or a shorter period EMA on the 1 Minute or

15 Minute timeframes.

2. Set the stop loss level 30 pips below the price, or below the previous low. Move the

stop to the entry price (breakeven) at 5 pips profit.

3. Exit the trade at a profit of 5 pips or more.

 

Buy Example

in this example, the trendlines are going upward indicating that the main trend is an

uptrend on the 1 Minute and 15 Minute timeframes.

I noticed that the price had bounced from the lower trendline and was going up. Looking

at the ADX, it is also going up. So, once price had crossed above the moving averages,

I entered a buy trade before the candle closed.

I set my stop loss level below the swing lows. As soon as the trade reached 5 pips in

profit, I exited the trade.

This example is an ideal trade, but in case the price does not behave as expected, you

will have to take the profit that the market is willing to give you.

EMA's price Action Scalping system
EMA's price Action Scalping system

 

1. On the 15 Minute chart, check for any of the following signals:

a. The price is below the 21 period EMA (dark orange or red).

b. The 14 period moving average (magenta or purple) is below the 21 period

moving average. This indicates that the trend is a downtrend on the 15 Minute

timeframe. At times, I also use 5 and 8 period moving averages. They should be

below the 21 period moving average too.

c. The ADX is sloping up and is above the 30 level. This indicates that the

downtrend momentum is gaining strength.

d. The trendline indicator is slanting down. This also indicates that the trend is a

downtrend on the 15 Minute timeframe.

2. Go to the 1 Minute chart and check for the following signals:

a. The trendline indicator is slanting down, which indicates that the trend is a

downtrend.

b. The ADX is sloping up or is above the 30 level.

3. Enter a sell trade on the 1 Minute chart when any one of the following conditions

occur:

a. The price breaks a support level or a previous swing low on the 1 Minute or 15

Minute timeframes.

b. The price bounced off from the upper trendline on the 1 Minute or 15 Minute

timeframes.

c. The price pulled back to the 21 EMA or a shorter period EMA on the 1 Minute or

15 Minute timeframes.

2. Set the stop loss level 30 pips above the price, or above the previous high. Move the

stop to the entry price (breakeven) at 5 pips profit.

 

Sell Example

In this example, the trendlines on both 1 Minute and 15 Minute timeframes are going

downward indicating that the main trend is a downtrend.

After rejecting from an upper trendline, the price had crossed under the EMAs. The

EMAs are also beginning to form a downtrend.

The ADX is going up in the 1 Minute timeframe while it is already above 30 level in the

15 Minute timeframe. I entered a sell trade and set the stop loss level above the

previous swing high. As soon as the trade reached 5 pips in profit, I exited the trade.

EMA'S Price Action scalping system
EMA'S Price Action scalping system
Ema's price action scalping system
ema's price action scalping.rar
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EMA's Price Action scalping.pdf
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