The EMA’s Band Scalp Trading System represents a forex day trading strategy that comprises a set of unique exponential moving averages and a Stochastic Oscillator for tracking the trend-reversal moments.
This MT4 system serves its users in multi-purpose uses such as examining the current trend condition, anticipating the trend reversal moments, determining the trade entry and exit levels, etc.
It applies a 100-period exponential moving average providing an overview of the intraday trend situation. The three central waves of 50-EMA are plotted based on the previous price candles’ high, close, and low. We’ll use the crossover between 50 and 100 EMAs for spotting trend-reversals.
Moreover, you’ll find the Stochastics at the bottom, widely popular as a reliable momentum indicator for forex and stock day traders. The system applies its overbought/oversold signals to filter the trade signals.
Buy Signal Generation with EMA’s Band Scalp Trading System
The 50 EMA requires to move above the 100 EMA for a bullish crossover. Moreover, the price breaking above the EMAs indicates the market has just initiated an uptrend move. Also, the Stochastics value needs to be around 30 to ensure the market went oversold already. Finally, wait for a bullish breakout at the 50-EMA levels for triggering a buy order.
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Sell Signal Generation with EMA’s Band Scalp Trading System
In this example, the 50 EMA plotted a bearish crossover with the 100 EMA. Besides, the price simultaneously made a bearish breakout at the EMA levels confirming a bearish trend reversal. Moreover, the Stochastics slope started dropping from 70 to ensure an overbought market and a green signal to go for a short entry.
Conclusion
The EMA’s Band Scalp Trading System offers a consistent MT4 day trading strategy for Forex and Stock speculators. It also works well on cryptocurrency charts providing stable signals, especially for scalpers. Moreover, it suits multi-timeframes, allowing you to simultaneously examine long- and short-term trends for better trade confirmations.
