Many have known the Camelback Scalping technique by reading specific trading manuals. To use this technique you need a moving channel average and an exponential moving average because you need to keep trading operations positive.
How Does the Camelback Scalping Technique Work?
To make the Camelback trading technique work better, we need 3 technical indicators that can help set up the chart. These are:
- A 15-period exponential moving average (EMA);
- A simple moving average (SMA) with 40 periods to be set on highs (high);
- A simple moving average (SMA) with 40 periods to be set on the minimum (low).
Most times, it is always better to use the popular Metatrader 4 platform, as this is offered by most Forex brokers like Juno markets forex in addition to their online trading platforms. Before testing the platform and technique with a real account, I always recommend using a demo account.
The broker mentioned above offers the ability to activate a demo account in order to test their trading strategies. In this specific case, it is also possible to test the CamelBack technique.
Entry to the Market with the Camelback Technique
One can possibly trade the market both upwards, operating with a long operation at the moment when prices are above the channel, this is when the breaking of the maximum bar that forms the local minimum occurs.
Furthermore, it is possible to enter a downward market (short), otherwise, when prices are below the channel. Here is the point where the breaking of the minimum of the bar that forms the local maximum happens, and it is the moment in which to trade on the market. But only and only if:
- The 15-period EMA is not flat and forms a trend.
- The EMA remains in the trade’s direction.
- No gaps are formed.
Camelback in Summary
- It is possible to evaluate the entry into the market on long positions, in a case where the prices are above the channel; in this case, it is necessary to look out for the breaking of the maximum of the bar which forms the local minimum;
- It is possible to evaluate the entry into the market downwards, with short transactions, only if the prices are below the channel and the break that must be the opposite of the former case.
At this point, if your interest is to try this technique, we strongly advise you do it with a demo account, choosing the broker we mentioned above by just opening a Juno markets account.
In this way, you can personally test the operation and if necessary also test the other online trading strategies.
