Kevin Ho, floor trader, reveals his six favourite high probability scalping setups with tight risk rules.. . .
When the two groups of MMAs part, you have an entry signal. You can tell when this has occurred by watching for a gap between the yellow and aqua EMAs.
The best entries are given when the long-term (red) group is already aligned in a perfect order behind the trend indicated by the short-term (green) group. Sloppy crosses result in sloppy trades.
There are a few of things you need to pay attention to with this implementation of guppy:
۱٫ Avoid trading against the 200 EMA. (I don’t like trading against the multi-day trend, either.)
۲٫ Don’t take shaky crosses. You want the candle to be moving above or below the greens with authority.
۳٫ The best crosses occur at a sharp angle against the reds.
۴٫ Do not take a cross if the reds are still pointing the other way. When the reds tighten and start to flip over, you’re ok.
۵٫ Sometimes it is better to wait for a pullback to confirm the validity of the move. When you get a candle closing at its high or low in the direction of the move, you can enter.
Here is a pictorial example. I have also attached my template.