65# High Proability Low Risk trading

Support and resistenze with EMA's

Submit by Leo 09/04/2017

 

High Proability Low Risk trading is a system that identifies high probability low risk

profitable trades.

Time frame 5 min or higher.

 

Currency pairs:any.

Metatatrader indicators

1. SuppRTF

2. Exponential Moving Averages

a. 15 EMA applied to High

b. 15 EMA applied to Low

c. 200 EMA applied to Close

3. MACD (12, 26, 9 applied to Close)

 

Trading Rules High Proability Low Risk trading

 

Buy

1. Price and EMA channel are above 200 EMA.

2. Price makes a swing low above the 200 EMA, which means red SR dots must form

above 200 EMA.

2. Price closes above the dodger blue EMA 15 (applied to high).

3. Enter a buy trade if MACD histogram is above the signal line. For additional

confirmation (optional), the MACD histogram is above the zero line as well.

4. Stop loss along the magenta EMA 15 (applied to close).

5. Take profit at 1:1. You have an option to trail your stops instead of, or along with,

placing a hard target. Trail your stop under every new swing low or magenta 15 EMA

 

line.

Buy example

The 200 EMA is way below the price and the 15 EMA channel. Price closed above the

upper channel line and the previous SuppRTF level before closing. At this point, the

MACD histogram is above the zero line and crossed above the signal line, so we can

place a buy trade.

 

Set the stop loss along the lower channel line and the take profit at the same distance as the stop loss. If you have time to monitor the trade, you may trail the stop loss along the magenta line then under every new swing low that formed, based on the newly formed red SuppRTF dots.

High Proability Low Risk trading
High Proability Low Risk trading

Sell

1. Price and EMA channel are under 200 EMA.

2. Price makes a swing high under the 200 EMA, which means blue SR dots must form

under 200 EMA.

2. Price closes under the magenta EMA 15 (applied to close).

3. Enter a sell trade if MACD histogram is under the signal line. For additional

confirmation (optional), the MACD histogram is below the zero line as well.

4. Stop loss along the dodger blue EMA 15 (applied to high).

5. Take profit at 1:1.You have an option to trail your stops instead of, or along with,

placing a hard target. Trail your stop above every new swing high or dodger blue 15

 

EMA line.

Sell example

Below is a sell trade on the USDCHF 1 hour chart. Price and the 15 EMA channel had

been under the 200 EMA for some time now indicating a down trending market.

Price breaks under the magenta line and the red SuppRTF. At the bottom, we can see

that the MACD histogram is below the zero line and the signal line, so we can place a

sell trade at the close of the candle.

 

Set the stop loss along the blue channel line and the take profit at 1:1. In less than 30 minutes, price tagged the take profit and the trade was closed.

 High Proability Low Risk trading
High Proability Low Risk trading

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