Ribbon Trading System is a formation of a simple scalping strategy which is able to provide short-term trading solutions on a daily basis for the traders. This system uses a unique crossover technique between Gann-HiLo and Exponential Moving Average which is quite effective as a short-term trend detector.
Ribbon Trading System fits well with M5 and M15 time frame charts since it is a scalping system. Although, this system can be applied to trade all kinds of forex currency pairs and other financial assets available around the market.
Ribbon Trading System Overview
After the installation of the system at the MT4 terminal, your chart will appear like the following image:
Also Read: A Definitive Guide to Break out Trading
Ribbon Trading System: Explanation
- 13 EMA & Gann-HiLo-V2: Both of these indicators represent moving averages with different parameters and produces crossover signals which are well effective in detecting the short-term trend of the market. 13 EMA moves above the Gann-HiLo-V2 represents the bullish crossover signal indicating a possible opportunity for going long. On the other hand, Gann-HiLo-V2 moves above 13 EMA represents the bearish crossover signal of the market.
- TzPivotsD: TzPivotsD accumulates price data over the selected period of time and transforms them into pivot levels of the market. These levels work as horizontal supports and resistances of the price movements and represent potential swing areas of the market.
Ribbon Trading: Buy Rules
- 13 EMA moves above the Gann-HiLo-V2 level
- Price is supported by the lower TzPivotsD levels
- Buy triggers when the above conditions are met
- Set stop loss below the 13 EMA or Gann-HiLo-V2 levels
- Exit long/take profit whenever Price hits the upper TzPivotsD level and 13 EMA moves below the Gann-HiLo-V2 level
Ribbon Trading: Sell Rules
- Gann-HiLo-V2 moves above the 13 EMA level
- Price is resisted by the upper TzPivotsD levels
- Sell triggers when the above conditions are met
- Set stop loss above the 13 EMA or Gann-HiLo-V2 levels
- Exit short/take profit whenever Price hits the lower TzPivotsD level and 13 EMA moves above the Gann-HiLo-V2 level