Latest Systems
- VolcanoWMA Strategy
- Bounce Back Strategy
- Crystal Time Frame Switcher
- The Pouria Method
- The Bible Forex System
- Forex Trading Made Simple
- Scalping with Bollinger Band
- VMA Trend Trading
- 3 White Soldiers 3 Black Crows
- Price Action Scalper
Categories
- Technical
- Fundamental
- Scalping
- Trend Following
- Range-Bound Trading
- Day Trading
- Swing Trading
- Long-Term Trading
- Metatrader Only
- Hedge Trading
- Martingale Trading
- Counter Trend
- Divergence
- Breakout
- Price Action
Popular searches
- SHI channel
- scalping
- Signal
- 85 ema
- rsi
- macd
- BBands stop
- slope direction line
- heiken ashi
- Swing Trading
Forex trading system "VolcanoWMA Strategy"
Learn to scalp using the VolcanoWMA Strategy
This strategy was manly inspired from Guppy Moving Average and some other rainbows trading approach. In addition, there is another indicator called VolcanoWMA that provides the arrow and alert signal. The strategy determines the trend with the WMAs and enters the trending market using the VolcanoWMA indicator at the best timing.
Details
Categories: Technical, Scalping, Metatrader Only
Timeframes: 1 Minute
Currency pairs: EURUSD
Trading sessions: ANY
Indicators used
- Moving Averages
Period: 40 to 60 and 90 to 120
MA method: Linear Weighted
Apply to: Close
- VolcanoWMA
Download VolcanoWMA Indicator
Entry rules
Vice versa, we open a buy order when there is an up arrow, and all the WMA lines has an upward slope, and the blue WMA lines are stretched and the green / pink WMA lines are compressed as shown in the following picture.We open a sell order when there is an down arrow, and all the WMA lines has an downward slope, and the blue WMA lines are stretched and the green / pink WMA lines are compressed.
Trade management
The takeprofit and the stop loss are describe in the following exit rules.
Exit rules
As it is a scalping strategy, so the takeprofit and stoploss are small in which the takeprofit is 10 pips and the stoploss us 10 pips as shown in the following picture.
Advantages
It is a trend following strategy in which it has a lower risk as compared to strategy that trade on sideway market and retracement market.
Disadvantages
This strategy does not work well whenever there is a reversal of trend.
Metatrader 4 chart template files
 |  |  |
Comments
You should note that VolcanoWMA is an indicator. You should install it into \experts\indicators\
WMA lines must be added manually or you can download template and apply it on the chart.
WMA lines is basic MT4 Moving Average indicator applied to "Weighted Close" price
Please download chart template. It has all the MA added.
what periods are the MA? It just statest 40-60, 90-120. Is it 40, 45,50,55,60 and 90,95,100,105,110,115,120?
I tried the EA but lost quite a lot of money. It is not accurate.
I download the EA but cannot see the WMA lines