Hello all,
I have a strategy that I put together that is working well for me.
You begin by “drawing” your scarf…
first change your chart to line instead of candle.
second apply the 10 sma on the thickest setting any color you choose.
third apply the 1 sma on the thickest setting. any color you choose but different than the 10. this is the price and
will cover your line. Then apply the 2,3,4,5,6,7,8 and 9. all a color you choose but different than the 1 and 10. again on the thickest setting.
You now have your " scarf" drawn.
The indicator I use is the RSI set at 9. If on the daily the scarf is being "pulled" down so I see the 10 sma on the top I sell. If the scarf on the daily is being pulled up so I see the 10 on the bottom I buy. If the 10 sma is covered by the scarf I do not trade.
My entry is when the 1 hour “pulls back”. The price will fold the “scarf” under it self. I will either set my trade when the 1 sma appears from under the “scarf” or I will set an EA on the 15 minute.
The EA is set to open a trade when the 1 sma crosses over the 10 sma in the direction I want to trade on the 15 minute chart.
my stop is 1 pip from the high of the pull back in a short trade and the low of the pullback in a long trade.
No target…I close the trade when the price makes a new high or low but the RSI on the hourly chart does not.
