Schaff Trend Scalping
Posted: Wed Jul 29, 2009 4:33 amHi everyone,
Its been quite a long time since I posted a Trading Strategy but here is just another new Scalping method which I've tested for quite a long time and now I feel confident to share it with everyone around.
However, please note that although the Logic is same but this particular Indicator behaves bit differently when I use it on MT4 or AlTrade Platform compared to the ProRealTime platform that I use with my CFD Broker. IMHO, I've found the ProRealTime much more reliable than the way it works on MT4.
Here goes my Scalping method:
Timeframe: 5, 10, 15 Minutes
Pairs: Any pair will do however Cable (GBPUDS, GBPJPY) is my favorite for Scalping
Go Long When:
1. Schaff Trend Cycle has been rising
2. Schaff Trend >= 25
3. MACD is in uptrend
4. Parabolic is in Uptrend
Go Short When:
1. Schaff Trend Cycle has been declining
2. Schaff Trend <= 75
3. MACD is in downtrend
4. Parabolic is in downtrend
Exit When:
Really depends on the MACD Pattern, sometimes you may want to Exit when the MACD line separates itself from the Histogram while sometimes you need to Exit when the Schaff has reached to 75 level (if you're on Long Trade). Based on my experience, it also depends on how quickly the Schaff Trend has moved from one extreme to another.
Advantage:
Basically, it filters out the False MACD signals, such as the one shown in Chart. The key is to avoid the MACD signals which are not confirmed by the Schaff Trend Cycle.
Tips:
1. Also try to use it on larger timeframes, you'll find it quite useful especially on 4H timeframe
2. Try it in combination with ADX (see my previous strategy on this site "ADX Power" at http://forex-strategies-revealed.com/basic/adx-power)
3. If you're not using this system for Scalping but for the longer term Entries than you might want to keep yourself in trade until the Schaff Trend hasn't changed its color (sorry only available in ProRealTime) or moved to the other side (25 to 75 or from 75 to 25)
Caution:
1. Only use this system during the active trading hours (European Session is my favorite)
2. Its not necessary that the Schaff Trend will always move between 25 and 75 levels, sometimes this might change its direction well before reaching its destination. If that happens, you must exit your trade immediately.
Once again, good luck with your trades and keep making pips.
Nariman (Asherewt)
http://ichi360.wordpress.com
Its been quite a long time since I posted a Trading Strategy but here is just another new Scalping method which I've tested for quite a long time and now I feel confident to share it with everyone around.
However, please note that although the Logic is same but this particular Indicator behaves bit differently when I use it on MT4 or AlTrade Platform compared to the ProRealTime platform that I use with my CFD Broker. IMHO, I've found the ProRealTime much more reliable than the way it works on MT4.
Here goes my Scalping method:
Timeframe: 5, 10, 15 Minutes
Pairs: Any pair will do however Cable (GBPUDS, GBPJPY) is my favorite for Scalping
Go Long When:
1. Schaff Trend Cycle has been rising
2. Schaff Trend >= 25
3. MACD is in uptrend
4. Parabolic is in Uptrend
Go Short When:
1. Schaff Trend Cycle has been declining
2. Schaff Trend <= 75
3. MACD is in downtrend
4. Parabolic is in downtrend
Exit When:
Really depends on the MACD Pattern, sometimes you may want to Exit when the MACD line separates itself from the Histogram while sometimes you need to Exit when the Schaff has reached to 75 level (if you're on Long Trade). Based on my experience, it also depends on how quickly the Schaff Trend has moved from one extreme to another.
Advantage:
Basically, it filters out the False MACD signals, such as the one shown in Chart. The key is to avoid the MACD signals which are not confirmed by the Schaff Trend Cycle.
Tips:
1. Also try to use it on larger timeframes, you'll find it quite useful especially on 4H timeframe
2. Try it in combination with ADX (see my previous strategy on this site "ADX Power" at http://forex-strategies-revealed.com/basic/adx-power)
3. If you're not using this system for Scalping but for the longer term Entries than you might want to keep yourself in trade until the Schaff Trend hasn't changed its color (sorry only available in ProRealTime) or moved to the other side (25 to 75 or from 75 to 25)
Caution:
1. Only use this system during the active trading hours (European Session is my favorite)
2. Its not necessary that the Schaff Trend will always move between 25 and 75 levels, sometimes this might change its direction well before reaching its destination. If that happens, you must exit your trade immediately.
Once again, good luck with your trades and keep making pips.
Nariman (Asherewt)
http://ichi360.wordpress.com
to register an account... so many views and no comments. 
I had found this Colored STC just last night and wanted to post here as an attachment now when I saw that you've already done it. Thanks a lot for doing this, and yes the colored MACD looks good too.