Triple EMA Scalping Strategy That Works
55sThe core strategy is explained concisely, offering immediate actionable value for aspiring traders.
▶ Play ClipAI Summary
The video presents two scalping strategies for day trading forex, each with specific entry, exit, and risk management rules. The first strategy uses three exponential moving averages (25, 50, 100) to identify trends and pullback entries, while the second combines the RSI, 200 EMA, and engulfing patterns. The video also provides five general tips for improving scalping performance.
Chapters
[00:03]
Triple EMA Scalping Strategy Overview
Uses 25, 50, and 100 period exponential moving averages. Strategy requires all three EMAs to be aligned in the same direction and separated, indicating a trend. Avoid sideways or crossing EMAs. Candles should be fully outside the 25 EMA.
[01:13]
Entry Signal for Triple EMA Strategy
Entry occurs when price makes a pullback and closes below the 25 or 50 EMA, but must not cross below the 100 EMA. After the pullback, wait for price to reverse back up to the 25 EMA, then take a buy position (or sell for downtrend).
[02:00]
Exit Strategy for Triple EMA
Stop loss is set at the 50 EMA. Profit target is set at 1.5 times the stop loss distance. If price breaks below the 100 EMA, cancel the setup as it may indicate a trend change.
[04:05]
RSI, 200 EMA, and Engulfing Strategy
Uses RSI set to 50 (single line), 200 EMA, and engulfing pattern with 'no detection' setting. Timeframe is 1 minute. For buy: price above 200 EMA, bullish engulfing pattern, and RSI above 50. For sell: price below 200 EMA, bearish engulfing pattern, and RSI below 50.
[05:06]
Exit Strategy for RSI/Engulfing
Stop loss is set below (for buys) or above (for sells) the entry candle. Profit target is set at 2 times the stop loss distance.
[06:48]
Five Tips for Better Scalping
1) Don't take every trade; manage only what you can. 2) Risk no more than 1% of capital per trade, ideally 0.5%. 3) Know when to stop; take breaks to avoid fatigue. 4) Use a broker with low spread because every pip counts. 5) Choose one strategy and stick with it; don't switch frequently.
The video provides two concrete scalping strategies with clear rules for entry, exit, and risk management, along with practical tips for improving scalping discipline. It emphasizes the importance of trend alignment, proper stop losses, and risk control.
Tutorial Checklist
2
00:31
Identify an existing trend: all three EMAs must be heading in the same direction and separated from each other.
4
01:42
Wait for price to reverse back up to the 25 EMA, then enter a buy position (or sell for downtrend).
6
04:05
For second strategy: set RSI to 50, use 200 EMA, and set engulfing pattern to 'no detection'.
7
04:35
For buy: price above 200 EMA, bullish engulfing pattern, RSI above 50. For sell: price below 200 EMA, bearish engulfing pattern, RSI below 50.
Study Flashcards (9)
What are the three exponential moving averages used in the first scalping strategy?
easy
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What are the three exponential moving averages used in the first scalping strategy?
easy
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25, 50, and 100 period EMAs.
00:03
What condition must be met for the three EMAs to indicate an existing trend?
easy
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What condition must be met for the three EMAs to indicate an existing trend?
easy
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All three EMAs must be heading in the same direction and separated from each other.
00:31
What is the entry signal in the triple EMA strategy?
medium
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What is the entry signal in the triple EMA strategy?
medium
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Price makes a pullback and closes below the 25 or 50 EMA, but not below the 100 EMA, then reverses back up to the 25 EMA.
01:13
Where is the stop loss set in the triple EMA strategy?
easy
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Where is the stop loss set in the triple EMA strategy?
easy
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At the 50 EMA.
02:13
What is the profit target in the triple EMA strategy?
easy
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What is the profit target in the triple EMA strategy?
easy
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1.5 times the stop loss distance.
02:13
What settings are used for the RSI and engulfing pattern in the second strategy?
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What settings are used for the RSI and engulfing pattern in the second strategy?
medium
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RSI set to 50 (single line) and engulfing pattern set to 'no detection'.
04:20
What are the conditions for a buy signal in the RSI/engulfing strategy?
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What are the conditions for a buy signal in the RSI/engulfing strategy?
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Price above the 200 EMA, a bullish engulfing pattern, and RSI above the 50 line.
04:49
What is the recommended risk per trade according to the tips?
easy
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What is the recommended risk per trade according to the tips?
easy
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No more than 1% of capital, ideally 0.5%.
07:16
Why is using a broker with low spread important for scalping?
medium
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Why is using a broker with low spread important for scalping?
medium
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Because every pip counts, and a wide spread makes it hard to profit.
07:57
💡 Key Takeaways
🔧
Triple EMA Strategy Introduction
Provides a clear, rule-based approach to trend identification using three EMAs.
00:03
🔧
Pullback Entry Rule
Defines a precise entry condition that filters out weak setups.
01:13
⚖️
Risk-Reward Ratio
Sets a concrete profit target of 1.5R, which is a key risk management principle.
02:13
🔧
RSI and Engulfing Combination
Combines momentum and price action for higher probability entries.
04:05
⚖️
Risk Management Tip
Emphasizes capital preservation with a 1% risk limit, a fundamental trading principle.
07:16Full Transcript
[00:03] and profitable scalping strategy that is proven to have a high win rate so without further ado let's get on with the video for this scoping strategy i'm using three types of exponential moving
[00:17] averages the 25 50 and 100 period time frame so this is how the strategy works the first step is that we want to find
[00:31] an existing trend and the way we do that is by looking at the ema all three lines needs to be heading in and are also separated from each other like this
[00:43] like this which can be identified by the ema heading sideways you also want to avoid markets where the lines are crossing each other like this remember we want the three indicators to
[00:58] be in the same direction the position of the candles are also you want to find a setup where the candles are fully outside of the 25 ema like this so once you've identified the setup the
[01:13] next step is finding our entry signal our entry will be when the price makes a pullback and closes below the 25 and closes below the 25 or 50 ema let me show you what i mean
[01:25] so in this chart we have spotted an existing uptrend as shown by the three all of them are heading upwards while the candles are above them make a pullback towards the 25 or 50 ema
[01:42] and so this will act as their entry setup the next step the 25 ema again once this happens ema again once this happens you take a buy position here
[02:00] and broke below the 100 ema you cancel your whole setup and look for other trade opportunities because this may indicate that the trend is changing now for your exit strategy so let's say
[02:13] you took a buy position here you want to set your stop loss at the 50 ema and for your profit target you set it at 1.5 times your stop loss so here's an example of the strategy in
[02:28] in this chart we can see that the market is currently on an uptrend as shown by all three ema heading upwards while all the candles are above the ema next we are waiting for a pullback
[02:41] towards the 25 or 50 ema but remember it must not cross below the 100 ema so once the pullback happens the next step is to wait for the price to reverse back up to the 25 ema
[02:57] once this happens you take a buy position next we set up our profit target and stop loss here and as you can see the price ends up hitting our profit target
[03:10] so this counts as a successful trade let's look at another example in this chart we can identify an existing downtrend as shown by all three ema heading downwards while all the candles are
[03:24] below the ema next we are waiting for a pullback towards the 25 or 50 ema and remember the pullback must not overlap the 100 ema
[03:37] so once the pullback happens we wait for the price to go back to the 25 ema again and when it does you take a saddle position here next we set up our profit target and stop loss here
[03:52] stop loss here and as you can see the price hits our and this would have been a successful trade so that's how you trade the triple ema scalping strategy
[04:05] you another highly profitable scalping strategy so for this next strategy i'm using a combination of the rsi the 200 ema and the engulfing pattern
[04:20] so this is how the strategy works first you need to change the settings for the engulfing pattern to no detection next for your rsi you want to set it at both 50. so now you have a single line in the
[04:35] middle of the rsi next i'm using the one minute time frame for your entry setup if the price is above the 200 ema while a candle shows a bullish engulfing pattern
[04:49] while the rsi is above the 50 line you take a buy position it's the same for short positions as well if the price is below the 200 ema engulfing pattern while the rsi is below the 50 line you
[05:06] take a cell position entered a trade you want to set your stop loss below your entry candle here and set your profit target at 2 times
[05:19] your stop loss so now let's look at this strategy in action in this chart we can see that the price is above the 200 ema meaning that the price is on an uptrend
[05:31] and so we only take signals from the bullish engulfing pattern next we can actually see a bullish engulfing pattern formed however we can see that the rsi is still below the middle line
[05:44] below the middle line so you want to ignore this signal next we can see that another bullish engulfing pattern has formed but this time the rsi is already above the middle line
[05:56] so this is our entry signal and you want to take a buy position here now for your stop loss you set it below your entry candle here and for your profit target you set it at 2 times your stop loss
[06:09] 2 times your stop loss and so as you can see this trade ended up being profitable let's look at another example in this we can see that the price is below the 200 ema
[06:22] meaning we only take signals from the bearish engulfing pattern then we can spot that a bearish engulfing pattern has formed and the rsi is below the middle line and so you want to take a sell position
[06:35] here next you set your stop loss above your entry candle and for your profit target you set it at two times your stop loss and so this ended up being a profitable
[06:48] trade now i'm going to give you five quick tips to make you a better scalper the first tip is that you don't need to take every trade when you're scalping you will find
[07:01] situations where you would receive multiple entry signals if this happens you don't need to take all of them only take traits that you are able to manage multiple traits at once especially when you're scalping
[07:16] capital you never want to risk more than one percent of your capital per trade i recommend risking only 0.5 percent the third tip is knowing when to stop
[07:30] when you're scalping you can easily find yourself trading for hours and hours and over time you will get tired and lose focus take a break you don't have to worry about missing
[07:44] entry signals because there will always be other opportunities in the market the fourth tip is making sure you're using a broker with a low spread this is actually very important because when you're scalping
[07:57] every single pip counts and if you're using a broker with a wide spread you will have a hard time making a profit pair when you're scalping entry signals will
[08:11] very often so you don't have to worry about missing entry signals from other just choose one that you're comfortable with and stay with it so i just revealed two profitable scaling strategies
[08:25] that you can immediately trade right now and all i ask for in return is for you to take two seconds of your time into liking the video and subscribe to the channel it literally takes only two clicks but
[08:37] and you can also check out my other videos as well so thank you guys for watching and i'll see you in the next video
