Most scalpers depend upon some bit of lack when placing their trades. But lack isn’t always on their side therefore they end up making several successive loses that they out not to incur.
In forex trading, every trading strategy requires perfection and accuracy in predicting the direction of the market regardless whether it is for a short term or long term. This is the main reason why the Keltner Channels EMA Scalping system was developed.
Keltner Channels EMA system is designed for trading the majors. The main reason why it is suitable for trading the majors, is because they have smaller spreads as compared to the other quotes. Also it is an added advantage to the trader finding a scalping strategy for the majors due to their intraday movements. The major currency quotes are traded by many people and thus has a very high liquidity and their exchange rates change very often making them the perfect choice for the scalpers.
When using the Keltner Channels EMA, you should ensure that the timeframe that you are using M5 (5 minutes). The lesser the time frame when it comes to scalping the better. Remember that in scalping you open a trade and close it after a short period of time. Also it is advisable to use the candlesticks since they are easier to figure their direction as compared to the bars or the line charts.
This scalping system uses several indicators namely: the Keltner Channel period 40 so as the exponential moving average.
Fig.Illustrating the indicators ued in the Keltner Channels EMA system.
Keltner Channels and EMA system template comes with only the exponential moving average. As a scalper you have to download the Keltner Channel indicator and load it on the chart after loading the template. Then you change the period of the indicator to 40.
The Keltner Channels indicator default colors are white. However you can change the color to your desired color as done with the one in the chart above. This is by right clicking the indicator and then going to the color button and changing.
Form a glimpse of the chart above, it is clear that the system works by providing a hint of the trend of the forex market since all the indicators used in the system are all trend indicators.
Opening and closing trades following Keltner Channels EMA scalping system
A long positions or buy orders should be opened when the EMA is greater than or equal to the upper band of the Keltner Channel indicator.
The short positions or sell orders should be placed when the EMA becomes lesser than the down band of the Keltner Channel indicator.
And since you are scalping close the trades after the market moves with around 5-12pips. Whether profit or loss.
Fig. illustrating how to trade using the Keltner Channels EMA scalping system.
From the above chart, you can see that the trade should be closed after maximum of twelve pips is achieved even if the trend seems to be good for you.
Download Free Keltner Channels EMA Scalping System