MAIN SIGNAL STOP/EXIT 1 min scalping:

This system follows the Commandment to ‘Cut your losses short, Let your profits run’.

We do this by putting in an emergency Stop to prevent your account from being emptied. We do this by placing a Stop Above or Below the previous Swing High/Low.

 

However, your Stop will hardly ever be hit. We use the Yellow Trigger line to exit the trade. We use the Last line of Support/Resistance.

The MA lines are the Support/Resistance lines. In the Trade shown, our exit line is the Red 340 line. If the Yellow 13 Trigger line crossed back up through the 340 we would exit the trade.

MAIN SIGNAL PROFIT/EXIT:

This system follows the Commandment to ‘Cut your losses short, Let your profits run’.

For profit targets/exit, we target the Fibonacci Pivot Support/Resistance lines.

There are 3 S/R lines.

S1, S2, S3 and R1, R2, R3.

The S1 and R1 lines are almost always hit, so provide a reliable exit profit target.

The S2 and R2 lines are also regularly hit, but are less reliable targets.

The S3 and R3 lines are hit less often and do not provide a reliable target.

You may also choose to exit on the Yellow line crossing back through the 100 or 340.

CONTINUATION SIGNAL 1 min scalping:

The Second Signal we look to take is a Continuation Signal.

With a continuation signal we are taking advantage of the prevailing trend.

This happens when a Main signal has been given (13/1440 cross) and price has corrected. We now look for the Yellow signal line to cross back through the Red 340 line.

Also make sure that All RSI’s are on the correct side of the Blue Centre line before entering.

CONTINUATION SIGNAL EXIT/PROFIT:

Again we use an emergency stop above or below the last Swing High/Low.

But we will cut our losses a lot shorter than that. Our exit on this one is the Red 340 line. If the Yellow line crosses back through the Red 340, close the trade.

Profit targets will most likely be the S2/R2 or S3/R3. You can choose to close the trade once these are hit.

Another reliable profit exit for these trades is when the Yellow line crosses back through the Green 100 line.

Trendlines also provide a reliable profit target.

By using the simple moving averages in this system on the 1 minutes time frame, we are spying on the different time frame traders. The Yellow sma gives us a picture of what the short term traders are doing. The 100, 200 and 340 sma’s tells us what the medium term traders are doing, and the 1440 sma is a look at what the longer term traders are doing.

Be aware that the short term Yellow line traders have the least power to affect momemtum, and that the 1440 line trades have the most power to affect momemtum. Watch the 340 also as that has a lot of power to affect price movement.

Try not to pay attention to price movement ie. candle/bar movement. The true price movement is what the Yellow sma is doing. For example, you often see price spike above or below the higher sma’s, but the Yellow sma will not cross. So it is best to concentrate on the Yellow sma rather than the candles/bars.

The Yellow sma traders will try and lead price in a direction, but it wont happen unless at least the Green 100 sma traders follow. For decent moves, we need to see the Red 340 sma traders follow too.

Become familiar with how this works and this will allow you to extract the most from this system.

TRADE WELL!

NOTES:

This guide gives you a basic overview of the system and the signals we are looking for.

As you use the system and become familiar with it you will be able to spot more opportunities using these guidelines.

It takes time to get familiar with a system learn about its nuances, so be prepared to give it time.

To the right are some more guidelines.