The Morning Scalp Strategy combines the 50EMA with the Stochastic Momentum Index. The morning period is when penny stocks usually have the highest volatility, so the strategy works between 10:00 AM and 12:10 PM.
***It opens only long positions. The ideal timeframe for this scalping strategy is 5 minutes on low-price stocks. The stock should spike in the morning with momentum and Volume. ***Look for a daily or intraday support area, close to the open position, to increase the confidence in the play
The components are:
- EMA50: Exponential Moving Average (EMA50) - Stochastic Momentum Index (SMI)
Rules:
- Period: 10:00 AM and 12:10 PM - if SMI Crossover and SMI < 0, open a position - If close < EMA50, close the position - Profit target: To be decided by the user, default value = 10% above the entry price