Scalping strategy for index using BB and MACD
🧵
- completely rule-based
- good for options buying/selling
- Originally was developed for forex markets
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@kuttrapali26 @KommawarSwapnil @bhatiamanu
🧵
- completely rule-based
- good for options buying/selling
- Originally was developed for forex markets
🔖bookmark to save
Tags
@kuttrapali26 @KommawarSwapnil @bhatiamanu
▶️Most of the scalping is done using trend following system
▶️But this strategy works on the mean reversion system
▶️This means the price will eventually return to its the mean or average price before making a further move
▶️But this strategy works on the mean reversion system
▶️This means the price will eventually return to its the mean or average price before making a further move
The strategy primarily uses ⭕️Bollinger band
🟢Change the Bollinger band setting to 100,2
🟢When the price is above the upper band look for selling
🟢When the price is below the lower band look for buying
🟢Change the Bollinger band setting to 100,2
🟢When the price is above the upper band look for selling
🟢When the price is below the lower band look for buying
Before we enter a trade we need some confirmation
🟢Divergence in MACD histogram will give us confirmation
🟢Divergence occurs when there is a conflict between price and indicator
🟢Divergence in MACD histogram will give us confirmation
🟢Divergence occurs when there is a conflict between price and indicator
Combining BB and MACD for selling opportunity
🟢Time frame 2 min
🟢see if price is over stretched i.e above upper band
🟢Wait for a negative divergence
🟢Entry when price closes below upper band
🟢SL = previous swing high
🟢Target = central moving average
🟢Time frame 2 min
🟢see if price is over stretched i.e above upper band
🟢Wait for a negative divergence
🟢Entry when price closes below upper band
🟢SL = previous swing high
🟢Target = central moving average
Combining BB and MACD for Buying opportunity
🟢Time frame 2 min
🟢see if price is overstretched i.e below lower band
🟢Wait for a positive divergence
🟢Entry when the price closes above the lower band
🟢SL = previous swing LOW
🟢Target = central moving average
🟢Time frame 2 min
🟢see if price is overstretched i.e below lower band
🟢Wait for a positive divergence
🟢Entry when the price closes above the lower band
🟢SL = previous swing LOW
🟢Target = central moving average
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