Scalping strategy to finish the year strong

The one I started on from the start of your thread was EMA Channel Cross by kungfumachine. It’s based of your original strategy.

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Nice one I will check those out, thanks. I did a bit of research the other day about the cap channel inidicator to see if there was anything like it on TV and according to Chat GPT:-

The equivalent indicator for the CAP Channel Trading indicator on TradingView would be the “Donchian Channel” indicator. Donchian Channels are similar to price channels and are also based on the concept of support and resistance levels. The indicator plots two lines above and below the price, representing the highest high and lowest low over a specified period. These lines can be used to identify potential breakouts or reversals in the market, similar to the CAP Channel Trading indicator on MT4.

Not that I am trying to convert everyone away from MT4.


I’ve got three different tabs not testing the different combos of TV indicators I’ve come across in this thread, plus a couple extras. It’ll be interesting to see if come to the same conclusion on taking trades.

The good and the bad about spikes like today’s.

The good: Samewise cleaned up on existing trades.
The good: I finished scalping, like I always try to, before the high impact news and my D1 chart trades are not affected by giant spikes like that because my SLs are safely away from any possibility of getting hit.

The bad: Anyone who was not properly prepared for the spike. Automatic loss.

Often, the market goes back to where it was before the spike. After all, everyone’s economy was already terrible. The news of that coming out on any given day does not mean that’s the day it started being terrible and tomorrow is not the day that it started getting better.

But we need to watch the majors as Usd is near a years long high against Jpy. It could break above and in 2024 it’ll be the wild west, or it could begin to fall against the Euro and Japanese Yen.

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I can confirm, I had a SL get hit on a 40 pip, less-than-5-minute spike. wow! if you’re scalping, bye bye trade. Even if you’re not scalping, do you use 40+ pip stops?

I got lucky from last week that I didn’t set stops. I was down 80 pips at one point on GBPUSD. I guess I could have put something like a 150 pip stop for end-of-world volatility, but now I get why some traders don’t use stops at all.


Rats. I tried to take the screenshot before closing.


More MACD strategy direction from today’s top trades on Eur/Usd


Eur/Usd EMAs
I am finding I like the fast at 6 and the slow at 25.
Confirmation is usually the MACD changing side of zero line.

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Today’s spike returns price to where the price range was before yesterday’s spike.

I rode it up and closed near the top.

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A spike corrupts the first signal that follows it. No trade.

M1 Trading guidance

What is the next safest thing to do?
We have an uptrend indicated by the yellow Hieken Ashi just below the Cap channel. We have a downtrend Macd and ema cross signal.

We WAIT until price comes down toward the bottom of the Cap and if Heiken Ashi is still yellow and we get a buy signal from Macd or ema cross, we enter a buy trade.

Minutes later: Price bounces up off Cap mid-point and order block/support line.


Hello dear author. hello to you big from Kazakhstan, Central Asia. If it’s not difficult, could you send off your settings for m1, d1, 4h - eurusd, usdjpy, gbp usd for the upper and lower charts. I re-read all your posts, unfortunately I’m confused.
Thank you very much dear American Trader, i love you)


The settings are not critical. They can be optimized for recent price movement and time frame, but you don’t have to.

I recommend starting with a fast ema at 6 to 8. The slow emas set to 25, one at “high” and the other to “low”. (They are the same on the main chart and the oscillator window on the bottom.). It’s just easier to see them in the bottom window without the candles in the way.

Cap Channel: just use default settings.

MACD: I’m using 6, 14, 10. Remember, the macd is really just another way of looking at an EMA cross, just with volume thrown in.

These settings will work on all time frames. You can consider a higher number on the slow EMA’s if you want to stay in trades longer. You can also consider using a faster fast EMA on daily charts.

At some point I am sure you will adjust the settings to best fit your own personal trading style. And that is perfectly okay.


thank you very much dear. you motivate me, I hope someday I will see you and we will have coffee. Hello from Kazakhstan

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So far, so good! Here are my results after 4 trading days. I managed to not violate the daily drawdown rule and passed the free trial. Without having a SL. I don’t know how much longer this would work, I think I will need to work with SL’s anyways if I wish to keep an account long term. Still working it out, for now experimenting without SL’s still.



That’s great!

Are you finding the addition of the CAP Channel useful in combination with the KOF Full EMA Strategy? I’m practicing the same at the moment, in terms of adding on the CAP Channel, Order Block, and MACD to see if this lets me get a hang of the KOF EMA strategy on MT4.

Which time frame are you trading - 1-min. etc.?

I tried to use the EMA Channel Signals in Combination with the cap Channel signals so far, but found the EMA Channel signals to be kind of useless. Now trying it with the KOF EMA’s as you said. But I am not really placing many orders like with KOF, rather waiting for price to go beyond the Cap channel and then placing 2-3 cost averaging positions. As I said, I have to be really careful with the drawdown.
TP is the middle line of the cap channel.

From 6-9AM UTC+1 which is the 3 hours before London opening, I trade the Min1 signals, after LD open I rely on the Min5 Signals, I find them very accurate. I don’t trade NY Session, too many news and too much volatility.

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Raining pips today.

I think the Asian markets takes holiday today and New York takes holiday tomorrow.

After a market is closed for a day, there is usually a lot of built up momentum waiting to unleash. Followed by a couple of days ranging.

We will see if that holds true next week.


i have also just been wondering about holiday hours, etc.

i don’t know how it works with spot forex, i guess it’s up to the brokers (within reason) as they’re only “trading” their own “products”?

forex futures are open on the CME tomorrow (Thanksgiving) until 12.00 noon, and then the same again on Friday - kind of “half days” … i was thinking Monday may be busy (“built up momentum”, as you said) and midweek maybe quieter, next week … hard to know(?)