669# Algo Scalping
Trend Momentum Scalping and Divergence Scalping
Two strategies for scalping and day trading
Submit by Janus Trader
Algo Scalping is a template for scalping and day trading based on trend and momentum-cycle indicators. i show two types of entries with the same template one based on the trend and another based on the divergence of the MACD.
Time Frame 5 min, 15 min, 30 min, 60 min.
Currency pairs: major, minor Indices and Commodities.
Matatrader 4 indicators:
Simple moving average 8 period, close;
Exponential moving average 21 period, close;
Exponential moving average 64 period, close;
FX Divergence V.1.1 (12, 26, 9);
MACD (11, 26,3);
Schaff Trend color (10, 23, 50).
Trading rules Algo Scalping
Trend momentum Scalping strategy
Trades only in the direction of the trend.
Trend up= SMA 8> EMA 21 and EMA 64
Trend down= SMA 8> EMA 21 and EMA 64
Buy
Condition=trend up
MACD crosses upward
Schaff trend green color above or near at 90 level.
FX Divergence green bar
Sell
Condition=trend down
MACD crosses downward
Schaff trend red color below or near at 10 level.
FX Divergence red bar
Divergence Scalping
Buy
Condition: buy arrow below red histogram of FX Divergence
Timing for entry
Schaff trend green color above or near at 90 level.
MACD crosses upward
FX Divergence green bar
SMA 8> EMA 21 optional
Sell
Condition: sell arrow above green histogram of FX Divergence
Timing for entry
Schaff trend red color below or near at 10 level.
MACD crossesdownpward
FX Divergence red bar
SMA 8< EMA 21 optional.
Exit position
Place initial stop loss below/above the previous swing high/low.
Profit target ratio stop loss from 1:1 to 1:1.2.
This is a winning strategy but it is recommended to learn how to use it starting from the time frame 30 min or h1. The technique with the divergence is recommended to use the time frame of 60, then when you are expert you can try it at 30 min or 15 min. The best timi frame for trend momentum scalping is 5 min.
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