hello everyone in today's video i will talk about a simple scalping strategy
using exponential moving average if you are new on the channel please subscribe
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scalping is a fast-paced strategy to enter and exit the market in relatively rapid succession
scalp has opened many positions dozens of times in a single session
they do not carry their trades overnight or even onto another trading session
their goal is to achieve profit from a small change in price unlike other methods that close
a trade after gaining hundreds or even thousands of pips in a single position
scalpers always close a trade with only around 15 to 30 pips that number does seem small but
imagine if it is done many times a day that would surely add up to a quite rewarding number
if the average value of a pip is five dollars then a profit of ten pips would be fifty dollars
do that ten times a day then you can earn five hundred dollars at the end of the day
although realistically speaking you might need to do a little bit more than that to
reach that number since there could be some losses during your trading session
this strategy is used in a small time frame around one to fifteen minutes
that small time frame pretty much explains how fast this strategy is executed
any traders who wish to employ this technique must be highly disciplined and decisive
one of the useful tools for scalping is the moving average indicator
and so we will specifically look at exponential moving average as a scalping tool in this video
using exponential moving average for scalping compared to the simple moving average the
oldest and widely used indicator within financial markets exponential moving average places greater
weight on the most recent price so this indicator will react faster to a change in trend or price
unlike the simple moving average that might become less effective if there is a rapid
change in price and therefore more suitable for a long-term trader exponential moving average
comes in as a more responsive indicator to accommodate short-term trading needs
this is how to use this scalping strategy using an exponential moving average indicator
prepare two exponential moving average indicators with a value of
seven exponential moving average and 14 exponential moving average
the by set up the seven exponential moving average must cross the 14 exponential moving average from
below after the two lines cross wait until the bullish candle closes open by after the two
conditions above is fulfilled set stop loss about 10 to 20 pips set take profit about 15 to 40 pips
you can use stop loss and take profit according to your risk management the cell set up the seven
exponential moving average must cross the 14 exponential moving average from above after
the two lines cross wait until the bearish candle closes open cell after the two conditions above
is fulfilled set stop loss level about 10 to 20 pips set take profit level about 15 to 40 pips
you can use stop loss and take profit according to your risk management the value of exponential
moving average varies from trader to trader some set it 7 and 14 others 5 and 15 exponential moving
average do an experiment on a demo account first to find which one is suitable for you
it's important notice for scalpers despite its advantages exponential moving average is not
a perfect indicator many traders look for other confirmations to get better signals from trading
with exponential moving average other than that a scalper also needs to specifically pay attention
to trading spreads scalping should only be used on an account with low spreads in order to optimize
your scalping strategy it is better to trade in a broker with low spreads and good execution
thanks for watching in case you have any questions don't hesitate to ask in the comments please don't
forget to like the video and subscribe to the channel i'll catch you in the next video