Volcano WMA Scalping is a forex trading system that is a perfect system for scalping. Volcano WMA Scalping is a very simple trading system. It does not contain any complicated technical indicators. It just consists of couple of moving averages and arrows. Since it is a scalping system, recommended time frame is 1 minute and the recommended forex pair is EURUSD as this pair has the lowest spread. While scalping in highly leveraged market like forex, you should avoid trading when the high impact fundamental events are about to come. Most of the time, such figures come with the forecasted data, past data and the actual data. When the actual data deviates significantly from the forecasted data, market reacts very aggressively. Most important part to know is such data can’t be forecasted accurately every time. It means that any surprising figures can come out and blow away your stops. Therefore, better than to gamble in such figures, avoid trading during very high impact news.
When the Volcano WMA Scalping is correctly installed on your trading platform, your chart should look like this:
- Moving Averages
The Volcano WMA Scalping system has 12 moving averages. These moving averages are categorized in to colors; golden, green, and red. All of them are linear weighted moving averages. The green color moving averages are the fastest moving average. The red color moving averages are the middle term moving averages and the golden moving averages are the slowest moving average. These moving averages are the main signal generator indicator of this system. In an up trend market, when the green moving averages cross above all the other moving averages, it’s a buy signal and vice versa. Similarly, in a down trending market, green moving averages should cross below all the other moving averages.
Buying Conditions Using Volcano WMA Scalping.
- Place a buy position when the green moving averages cross above all the other moving averages.
- Place your stop loss just below the recent swing low.
- Take your profit when the green moving averages fall back to touch the golden moving averages.
Selling Conditions Using Volcano WMA Scalping.
- Place a sell position when the green moving averages cross below all the other moving averages.
- Place your stop loss just above the recent swing high.
- Take your profit when the green moving averages rises back to touch the golden moving averages.
Download Free Forex Volcano WMA Scalping System