Thursday, October 8, 2009

The system I'm about to show is a modified version of another system seen on forexfactory.com.

TIMEFRAME: one minute or less.

PAIR: Any (tested only on EURUSD)

INDICATORS:
1) RSI 14 with 55 and 45 level.
2) CCI 34
3) CCI 170
4) RSI 5 "Worms" with oversold and overbought levels of 15 and 85 (Great Worms).
5) RSI 5 "Worms" with oversold and overbought levels of 20 and 80 (Medium Worms).
6) RSI 5 "Worms" with oversold and overbought levels of 25 and 75 (Small Worms).

Long:

- CCI 170 is above 0 and show uptrend.
- CCI 34 cross 0 and show uptrend.
- RSI 14 is above 55 level.
Short:
- CCI 170 is below 0 and show downtrend.
- CCI 34 cross 0 and show downtrend.
- RSI 14 is below 45 level.
Exits:
Use RSI Worms to spot exits. Close the trade when a medium or great worm is displayed, even if a small worm is displayed if you are in profit and trend isn't enought strong.

S/L: 10 pips maximum

Move your SL level when you are in huge profit.

Take profit is usually 5-7 pips. Less time you stay in the market, more possibilities to make profit. Remember to take your profit as fast as you can! There isn't an ideal session to trade this strategy, but I beware you of flat and choppy market sessions. As you can see on the top of the page, I usually use a gmma channel to spot strong moves.

Please visit the dedicated thread on forexfactory.com to find templates, indicators (RSI worms and others) and other useful stuffs.

My personal thought: This is an easy and smart method to scalp the currencies. Anyway, I haven't tested it enough to spot ideal pairs and sessions, so it isn't a ready to use system. If you like it, you can search the best setup. Then let me know what are your opinions.

My personal rate is: 6/10

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