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Inram Sait scalping method

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The trading technique that we will discuss in this article is known as Inram Sait and is basically a scalping method which was employed initially in 1 minute charts but due to some problems with some Market Makers brokers which do not allow this type of strategy,  it has also been used to trade in 5 minute charts. 

This is a very useful strategy for scalpers but it is important to note that scalping is not a practice for every trader, especially for those who are highly stressed and can not stand the pressure of the sudden changes of direction that occur in short term time frames  of 1 minute and 5 minutes.

Trading system description

This is a scalping trading technique designed to trade with volatile currency pairs in 1 minute and 5 minutes charts. For this reason this is not an strategy recommended for medium and long term time frames. This system uses trend indicators and oscillators to determine rapid changes in the price trend in such short time intervals.

Trading Instruments

This strategy works best with highly volatile currency pairs like the GBP/USD or GBP/JPY.

Indicators

  • A 5 minute or 1 minute candlestick chart.
  • Bollinger Bands 20,2,0 at close. 
  • Stochastic 14,3,3 L / H, Exponential.
  • EMA (exponential moving average) 60 at close. 
  • EMA 200 at close. 
  • Laguerre Gama 0.8 
  • Laguerre Gama 0.6
  • MACD 12,20,9.

Trading system rules

Rules for long positions:

  • The buy signal is triggered when Laguerre gama 0.6 (blue) crosses the Laguerre gama 0.8 (red) from above to below if both indicators are below 0.1. Also, if both indicators are above 0.1 the trading signal could be false.
  • The MACD must be in the positive zone (above the level 0).
  • The stochastic must be in the positive zone (above the level 0).
  • When these 3 conditions are produced with a difference of +/-2 candles, the trader can consider that it is a reliable trading signal.

Rules for short positions:

  • The sell signal is triggered when Laguerre gama 0.6 (blue) crosses the Laguerre gama 0.8 (red) from below to above if both indicators are above 0.9. Also, if both indicators are below 0.9 the trading signal could be false.
  • The MACD must be in the negative zone (below the level 0).
  • The stochastic must be in the negative zone (below the level 0).
  • When these 3 conditions are produced with a difference of +/-2 candles, the trader can consider that it is a reliable trading signal.

-For buy signals, it is recommended that the Laguerre is as close as possible to 0.1 before crossing to ensure the reliability of the signal.

-For sell signals, it is recommended that the Laguerre is as close as possible to 0.9 before crossing to ensure the reliability of the signal.

Additional Notes

  • Do not open any position when the EMA  60 and the EMA 200 are very close to each other, even if the three conditions mentioned above are produced.
  • Do not trade when the market is in a sideways trend specially in periods of calm with little movements in the price.
  • It is not recommended to open any position near the lower band of the Bollinger Bands on sell signals or in the vicinity of the upper band  on buy signals. Preferably, if a buy signal is produced is recommended that the price is near the lower band, but if a sell signal is produced, the signal strength is reinforced if the price is near the upper band.
  • It is not advisable to open positions 30 minutes before or after the news, nor open positions 2 hours before and after major announcements.
  • Another important consideration is not to try to catch all the market movements and not try to trade with many currency pairs at the same time.
  • As in any other trading system, if you are not at least 90% sure to open a position it is best not to open it and wait for a better opportunity.

Example 

Below is an example of a  GBP/JPY chart where this scalping technique is applied. It shows the final configuration of the indicators and examples of buy/sell signals.

5 min chart of GBP/JPY with trading signals

 
 

 

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