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Introduction to TMT Scalping System: Enhancing Your Profitability with Trends, Momentum, and Trendlines

In the world of trading, there are various scalping strategies available, and one of them is utilizing the TMT system. How does it work, and how can you apply it? Let's explore together.

What is the TMT Scalping System?

The TMT trading system, which stands for Trend-Momentum-Trendline, is a scalping strategy that combines several trend indicators and oscillators. Developed for use on MetaTrader 4 with a focus on lower timeframes, this strategy relies on trend penetration and market momentum to gain profitable entry opportunities. TMT is intended for day traders or scalpers, with recommendations for use during the European and American trading sessions due to high volatility levels. Transactions are more advisable to be opened in line with the direction of the D1 daily candle.

To implement this strategy, it is recommended to choose short-term trading on M5-M15 timeframes with the use of daily charts. You can choose any currency pairs, but it's preferable to focus on Major pairs. And as usual, practice this strategy on a demo account before using it live.

How to Use the TMT Scalping System

Here are the tools needed to use the TMT system:

  1. Two EMAs (Exponential Moving Average) with periods of 20 and 7 to determine the daily trend direction.
  2. Two oscillators: MFI (Money Flow Index) and RSI (Relative Strength Index) to measure market momentum.
  3. Chart display using Daily Candles to show the current trend and Support and Resistance levels from higher timeframes.

Principles of Using the TMT Scalping System

Like other trading strategies, TMT uses specific algorithms to search for market entry signals. These signals are determined by a combination of indicators and trend lines as additional filters.

Conditions for Sell Position:

• The Daily Candle is red.
• A red bar is formed on the RSI.
• A pink bar is formed on the MFI Meter.
• EMA 7 is below EMA 20, indicating a downtrend.
• Price is between EMA 7 and 20.

Conditions for Buy Position:

• The Daily Candle is green.
• A blue bar is formed on the RSI.
• A blue bar is formed on the MFI Meter.
• EMA 7 is above EMA 20, indicating an uptrend.
• Price is between EMA 7 and 20.

When all conditions are met, draw a trend line from the highest point (for buy) or lowest point (for sell), and wait for the price to break through that line.

Don't forget to pay attention to the Risk/Reward Ratio during trading. Based on this strategy's recommendation, the Stop Loss and Take Profit ratio is 1:1, with a suggested stop-loss of about 10-20 pips.

Scalping strategies are becoming increasingly popular among traders, and by understanding the various approaches available, you can choose a strategy that suits your trading style. However, it's important to note that not all brokers allow scalping strategies. Therefore, make sure to choose a broker that supports scalping strategies to fully leverage the potential of the strategy.

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