Ichi Stock Scalping System is a combination of Ichimoku clouds and DOT-MMS Oscillator which measures the momentum of the trend.
Ichimoku cloud is a trend trading indicator which is based on the average of high and low of the candles, whereas DOT-MMS is an oscillator which indicates the overbought and oversold conditions of the market.
Ichimoku cloud gives us an idea about the trend and strength of the trend. If the green line is below the red line then the trend is bearish and if the green line is above the red line then the trend is bullish. Traders can look for sell opportunities in the bearish market and buy opportunities in the bullish market.
DOT-MMS is used as a trigger point in this Ichi Stock Scalping System. When DOT-MMS touches the oversold line it means the price is too low due to selling pressure and now it’s a good candidate for buy.
When DOT-MMS touches the overbought line it means the price is too high due to buying pressure and now it’s a good candidate for sell.
In strong trends price can remain overbought and oversold for a long period of time. So this Ichi Stock Scalping System combines the power of trend indicator along with DOT-MMS overbought and oversold zones.
Trading overbought signal in downtrend and oversold signal in uptrend is very good way of trading with the trend. This kind of signal gives indication of the end of pullback and allows traders to ride the trend.
Traders can ignore the buy signals on charts when there are a downtrend and trade only sell signals which appear on the chart. Similar way traders can ignore sell signals when there is an uptrend on the Ichimoku cloud and trade only buy signals which appear on the chart.
Ichi Stock: Buy conditions
The green line on the Ichimoku cloud should be above the red line.
Price Should trade above the Cloud.
DOT.MMS should give an oversold signal.
Buy signal should appear on charts.
Traders can hold the long trade till the price remains in an uptrend.
Ichi Stock: Sell conditions
The redline on the Ichimoku cloud should be below the green line.
Price should trade below the cloud.
DOT.MMS should give an overbought signal.
Sell signal should appear on charts.
Traders can hold the short trade till the price remains in a downtrend.
I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.
Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.
