Wednesday, 12 June 2019

Know What Is The TMT Scalping System In Forex?

TMT (Trend-Momentum-Trendline) is a Scalping trading system by utilizing a series of trend indicators and Oscillators. This trading system was developed in MetaTrader 4 to work at low Time Frames, based on breaking the trend direction and market momentum. This increases the opportunity to enter the market through the penetration of successful trends.

The TMT trading system is intended for traders or daily scalpers, with recommendations for use in European and American sessions, because market volatility is quite high at these times. In addition, a better transaction is opened towards the Daily Candle D1. To apply TMT, it is recommended to choose short-term trading on the Daily Time Frame M5-M15 chart. You can use any currency pair, but it's better if you focus on the Major pair.

As always, you must try this trading system on a demo account before using it on a real account. You can open a demo account at JustForex and try this trading strategy.



How to use the TMT Scalping System
Below, you can see what tools are needed to work on the TMT system. When the TMT trading system is installed correctly, your price chart will look like:


This strategy uses a series of modified technical indicators, including:

Two EMAs with periods 20 and 7 that function to determine the direction of the daily trend;
Two Oscillator: MFI (Money Flow Index), which takes into account volume and RSI.
EMA is located on the price chart, while MFI and RSI are displayed in the window below the graph. The display used is Candle Daily, to show the direction of the current trend in the D1 time range and the Support and Resistance levels of a higher Time Frame. This is intended so that traders can set Stop Loss and Take Profit more accurately. Because the indicators and templates on this strategy are Custom, so you need to download and install them in the MT4 terminal.

 Also Read : 4 Best Trailing Stop for Trading

Principles of Using the TMT Scalping System
Just like other trading systems, this Scalping strategy also uses certain algorithms. After getting the algorithm results, the trader looks for signals for the position to enter the market. The trading signal is determined by the indicator and Trendline Price Channel which are used as additional signal filters.


Candle Daily is red;
A red bar has been formed at the RSI;
A pink bar has been formed on the MFI Meter;
EMA 7 under EMA 20 - Downtrend;
Prices move in the range of EMA 7 and 20.
If all of these requirements are met, then you can search for entry points to take Sell positions. Drawing trend lines is also needed, because when the price breaks the line from top to bottom and makes corrections in it, it will be the entry point for the market.

Also Read : Simple but Effective Forex Trading Strategies for Beginners

Candle Daily is green;
A blue bar has been formed at the RSI;
A blue bar has been formed on the MFI Meter;
EMA 7 above EMA 20 - Uptrend;
Prices move in the range of EMA 7 and 20.
When this condition is fulfilled, pull the trend line from the highest maximum and wait until the Breakdown. When trading, don't forget about the Risk / Reward Ratio. According to the recommendations of this strategy, the ratio of Stop Loss and Take Profit is 1: 1. That means, if you set Stop Loss 10 points, then Take Profit is also at the same value. The recommended stop-loss is 10-20 pips.

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