The Dolphin Vomit Strategy is based on a strategy by Saty Mahajan (SATY VOMY). The idea is to wait for a strong trend to develop on the 10 minute chart (although it can work on other timeframes too), based on the 8/21/34 ema’s. A Ripster style ribbon is displayed to help identify the trend.
As the ribbon develops, it starts to look like a Dolphin. You then wait for a break of the EMAs (specifically the 48ema). This indicates a potential reversal developing (The Vomit), and you enter the trade. It is important to take note of any major support/resistance levels nearby as that could invalidate the 48ema break, causing a fake out.
Saty Mahajan also has a great write up on how to trade the VOMY setup.
The Cash+ SATY VOMY Indicator
The Cash+ SATY VOMY Indicator will automatically plot the SATY ribbons and ATR targets on your chart. These are adapted from the Free Saty Indicators that Saty Mahajan provides.
The indicator will automatically label when the EMA crossovers happens, and alert you on the chart when we get a successful break of the 48ema with a recommendation of going long or short off that level. I recommend trading on the 3min chart, where the ribbons from the 10min chart will be overlaid. This will allow you to get into an entry sooner.
The indicator will also recommend a Stop Loss level on a reclaim of the 21ema, and a target of the next SATY ATR level.
No strategy will win 100% of the time, but this strategy provides a low risk high reward scenario.
To get access to these indicators (and more), please sign up for the Cash+ Indicators.