The 34 EMA can point you in the direction of the trend of the market. Combined with trend lines, it can also allow you to enter trades counter trend for quick scalping opportunities.
Any time you a trading counter to the 34 EMA, you are going against the longer term trend direction so you want to make sure you tightly manage your trade so you don’t get caught in the wrong direction.
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Indicator :
34 Period EMA – exponential moving average
Technical Analysis Tool
Ability to draw trend lines consistently
You can use 34 EMA scalping strategy as a swing trading strategy as well but for this article, we are going scalp which generally means a smaller time frame. You can scalp larger time frames of course because scalping simply means taking quick profits as they are made available.
Time Frames To Use For Scalping
One minute
Five minute
Fifteen minute
Currency Pairs For Scalping
EURUSD
GBPUSD
EURJPY
GBPJPY
Buy Scalping Setup Rules
Market is in an down trend as shown by the 34 EMA
Price breaks above a downwards trend line
Price breaks above the 34 EMA
Look for a very bullish candlestick or chart pattern such as horizontal channel
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| Scalping Strategy |
Let’s go through this chart to see how it plays out
34 EMA is showing that we are in a down trend on this five minute chart
The trend line (inner trend line) contains price until…..
Price breaks above trend line, breaks slightly above 34 EMA and then breaks upwards
Profit Targets and Stop Loss
You can use the 34 EMA breakout candlesticks low for a stop loss and use risk multiples for a profit target. You can also target previous pivot highs for a take profit target.
Sell Setup Scalping Rule
Look for the 34 EMA to show we are in an uptrend
Price breaks below an upwards sloping trend line
Price breaks below 34 EMA
Look for a bearish candlestick or a chart pattern such as horizontal channel
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| Scalping Strategy |
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