PIP SEEKER

hour. This strategy is aimed at taking quick profits so is ideal for trading trending or consolidating markets.

SETTING UP THE CHARTS

The following is required on the one-minute chart:

1. Candle charts with an 8 (green) exponential moving average (EMA), an 21 (red) EMA and an 50 simple

moving average (SMA) for trend identification.

2. A 33.1.11 Stochastic oscillator (Blue and green.

3. Levels to be highlighted on the Stochastic oscillator include:

a. 61.8

b. 38.2

c. 50

d. 56

e. 44

DEFINING THE TREND

This strategy is traded using one-minute candles, so the underlying trend is derived from five-minute candles.

1. A bullish trend will be defined as:

a. The 8 EMA (green) is trading above the 21 EMA (red).

b. The market is trading above the 50 SMA.

c. The 33 Stochastic is trading above its own signal line (11).

a. The 8 EMA (green) is trading below the 21 EMA (red).

b. The market is trading below the 50 SMA.

c. The 33 Stochastic is trading below its own signal line (11).

2. A bearish trend will be defined as:

a. The 8 EMA (green) is trading below the 21 EMA (red).

b. The market is trading below the 50 SMA.

c. The 33 Stochastic is trading below its own signal line (11).

TRADING THE TTH ONE/FIVE-MINUTE SCALPING STRATEGY

INTRODUCTION.

This strategy has proven to be more successful when trading in the direction of the trend. The strategy works in all

market conditions, however certain times of the day should be avoided when markets are incredibly quiet such as

lunch times, as markets open and when big news is expected.

This strategy can be traded as follows:

1. 33 up or down through 50 (33 50) strategy

This strategy has proven to be the most profitable and works the best when trading in the direction of the fiveminute

trend. The five- minute trend is defined by applying the 8 and 21 EMAs.

1. The rules to go long:

a. The signal line (11) is trading below the 38.2 level of the Stochastic.

b. The Stochastic (33) breaks up through the 50 level of the Stochastic – go long.

c. The Stochastic often fails at 56, so watch for follow through.

d. Take profit after a five-point target has been reached after spread.

e. The stop loss is swing low (break previous significant low) or if the 33 Stochastic breaks the 38.2 level of

the Stochastic.

f. Be careful of overtrading, this strategy is very forgiving when trading in the direction of the five-minute

trend.

2. The rules to go short:

a. The signal line (11) is trading above the 61.8 level of the Stochastic.

b. The Stochastic (33) breaks down through the 50 level of the Stochastic – go short.

c. The Stochastic often fails at 44, so watch for follow through.

d. Take profit after a five-point target has been reached after spread.

e. The stop loss is swing high (break previous significant high) or if the 33 Stochastic breaks the 61.8

level of the oscillator.

f. Be careful of overtrading, this strategy is very forgiving when trading in the direction of the fiveminute

trend.

The separation strategy.

The aim of this strategy is to identify small retracements in the underlying trend (five-minute) and then use the oneminute

triggers to trade in the direction of that trend.

1. The rules to go long one - minute – the five-minute trend is up:

a. The 33 Stochastic is trading above the 50 level of the oscillator.

b. The 11.1.1 Stochastic trades and closes below the 50 level of the oscillator.

c. The 11.1.1 Stochastic breaks up through the 50 level of the oscillator.

d. The greater the separation the better the result.

e. Stop loss is swing low.

2. The rules to go short one - minute – the five-minute trend is down:

a. The 33 Stochastic is trading below the 50 level of the oscillator.

b. The 11.1.1 Stochastic trades and closes above the 50 level of the oscillator.

c. The 11.1.1 Stochastic breaks down through the 50 level of the oscillator.

d. The greater the separation the better the result.

e. Stop loss is swing high.

Trading using the signals.

The signal service will provide two alerts for each trade.

a. The alert will indicate that the Stochastic has hit the 44 level. This is an advanced warning that the strategy

is about to trigger long. A further alert will be received as the Stochastic breaks the 50 level.

b. The alert will indicate that the Stochastic has hit the 56 level. This is an advanced warning that the strategy

is about to trigger short. A further alert will be received as the Stochastic breaks the 50 level.

CONCLUSION

The results when trading this strategy have been extremely rewarding. The triggers to trade are often very quick

and require focus. We hope and trust that these strategies will contribute to your trading success.