Urban Towers Scalping Strategy

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This method I came across on the fxfisherman forum and it was posted by a user called ” Urbanforex”. I like it’s concept as it is simple and easy to follow. I think the way money is to be made using a method like this is, to use and old addage, to let your profits run. What I would do is look over some historical trades and work out the average entry bar size and then make sure your target is is at least twice the size in my opinion. You may be able to go a little bit shorter on the target but I would expect you need a positive reward to risk ratio to make this system worth trading.

The indicator looks like a simple multiple moving average indicator. I would suggest just trial and error is the best method of finding the best moving average period. Just have a play with it and I am sure that you will find a band/area that stands out to you and you can set your ma’s around that area. Alternatively maybe you could use a moving average envelope and just make a small band using that rather than a load of individual moving averages

Name : Urban Towers Scalping Strategy by urbanforex
Indicators : Blue MA
Time Frame : 15min

Description : During a trend, when the market retraces to the blue MA with at least 3 consecutive lower highs (3 towers), we enter at the break of the high of the last high. Ok let me explain in details one by one.

Steps to Follow :

– Price is above the blue MA trend is up
– Price is below the blue MA trend is down
– Market retraces towards the blue MA with 3 consecutive lower highs (in a uptrend)
– At the break of the high of the last candle, we enter long (in a uptrend)

Trade Example Number 1

Alright, what do we know right off the bat by looking at this. We know the market is in a uptrend because the market is above the blue MA. The market retraced to the blue line with 3 consecutive lower highs (3 towers) as we can see the red candles above. Next, we entered long at the break of the high of the last retracement candle – which in this case is 3rd tower as we can see above. Ok 1 more example for you guys

Trade Example Number 2

Ok now here is a example of a no good trade

Alright, in this example, the market was in a uptrend, it did a 1, 2, 3 tower retrace but it never had a breakout on the high of the 3rd tower, in fact, the market continued down and changed to a down trend. This example is to show that this strategy helps avoid many fake trades.

12 Responses

  1. TTrader says:

    Thanks. The system looks great. How do I get the Blue MA?

  2. Jason says:

    when I posted the article people were still debating what the actual indicator was. As I suggested I would use a moving average envelope. If you are using metatrader I would suggest using the envelopes indicator that comes with it.

    Choose your MA period that looks about right and then apply several envelopes at 0.01% apart. So set one to 0.01 the next to 0.02 then next to 0.03. This would give you 3 lines either side of the the chose moving average period.

    If I come up with any other solutions or I can actually add the blue ma indicator to the database I will post back here.


  3. rahman says:

    hi. would you have urban towers scalping strategy for emini s&p500.and do you have downloading file for ninja trade.

  4. Jason says:

    You only really require moving average envelopes which you will find on Ninjatrader. I do not know of Urban being used on Spx etc but can’t see why it wouldn’t be worth trying. But I haven’t.

  5. Navin Prithyani says:

    Just wanted to take a moment to thank you for posting the strategy exactly the way it is and not making any modifications to it.

    There is a video tutorial that goes along with the strategy that can be found on YouTube : http://www.youtube.com/watch?v=0LCGVaQxNCs

    And there is a chatroom I have running for Urban Towers Scalping Strategy followers : http://www.urbanforex.com/urban-towers-conference

    Warmest Regards,
    Navin Prithyani
    Twitter : urbanforex

  6. Jason says:

    no worries. its a good concept that I think traders should at least look at.

  7. slomiray says:

    Hi Jason,

    Kindly provide me this indicator , i would like to test.


  8. Jason says:

    You have to read the article. The indicator I suggest to use is a Moving Average envelope which is on any trading platform.

  9. BAFX says:

    So has anyone figured out which is the best MA to use in setting up the envelope? I will test it but if someone has found a good MA setting then that would help if they share it.

    Additionally, has anyone tried this strategy on lower timeframes? Is 15m a MUST or does it work fairly well on say 5m or even 2m? 1m might produce excessive noise.

  10. Suresh says:


    I looked beneath the Chart as per your video as well as searched for indicator under “R”. Please point me to the link to down load rainbow indicator for,
    Urban Towers Scalping Strategy.

    Thanks in advance

  11. Jason says:

    I don’t have the indicator. As i have suggested before..try a multiple moving average envelop or contact the Urban Towers creator.

  12. Peter says:

    Here’s a code snippet:


    EMA with different periods….

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