All posts by basilblazer

Forex scalping techniques16-17-18 Sept 2015

Forex scalping techniques 16-17-18 Sept 2015

It was three difficult days.The reason was that my biological clock was upset and traded in different times than those I usually trade.

The first trade I took was in 16/9/2015.

I have lost the bullish breakout(sleeping) and attempted to catch a bounce in resistance in higher time frames in GBPJPY.

The breakout was a valid signal with retracement offered 170 pips plus.As you remembered on 15-9-2015 I was trading in the Tokyo session.

The gbpjpy train passed over me and the cost was -11 pips. Closed the platform for the rest of European session.

forex scalping gbpjpy

Late at night in the closing of New York ,I have a short signal and I am attempting to fade the great bullish move.

First attempt 17-9-2015 till next day at 10,54 European EST  time = -20 pips.

Second attempt 11,30 retracement to short signal until 13.44 =-20

Third attempt double top 30 min after DOW open  till 20.55 = -20

Forth attempt same day 21.30  till 21,38 based on divergence= -20

Total for both pairs – 91 pips

forex scalping gbpusd loosing trades

Switching to gbpjpy short in 22.00 till  04,03 next morning . Total +139 pips

139 pips -91 loosing pips=48 pips net for the three days

forex scalping gbpjpy

I didn’t trade at all on Friday to relax from the stress of the previous days.Counter trend trades are among forex scalping techniques that are  very dangerous and new traders must avoid at all costs.

 

When to close forex trading positions ? 15 9 2015

When to close forex trading positions ?

When to close forex trading positions? The most of the times I close open positions around London close.I sleep better at nights.

Rarely as yesterday I had open position during the Tokyo session.

In these cases I close them few minutes before Frankfurt opens.Reversals and stop hunting will follow I don’t want to be in.

Yesterday trading was difficult for the three pairs I watch.

GBPUSD produced a nice signal with over 150 pips move south but with no retracement.

EURJPY produced a long signal with retracement but took in demo only.

Finally GBPJPY was ranging all day and since I was waiting for a breakout a took the retracement of a short signal which generated in DOW open.

Trade went bad and lost 25 pips. Left the charts open and found a pivotal point, a third touch in the upper area of the gbpjpy range and took an intraday trade with stable stop approx 20.30 EST European time.

This trade was left open during Tokyo session and produced 48 pips.

We made 23 net pips for 15 of September and closed it 20 minutes before Frankfurt open.

The three pairs we watch every day with remarks and trades

GBPUSD

forex scalping gbpjpy

GBPJPY

1592015 gbpjpy

EURJPY

forex scalping eurjpy

 

 

Consolidation and breakout 14 9 2015

Consolidation and breakout 14 9 2015

Consolidation and breakout is one of the most profitable trades you can take  in any financial instrument.

The problem is to find the real breakout or you will be caught in range .As I have predicted on Friday post GBPJPY would break in the next session.

So with patience I was waiting for a signal in the European session today.

After the fresh signal I wait for a retracement and retracement came.I entered in the most safe spot but the pair scared me initially because it continued to climb and gave opposite signal.

The higher time frame chart- which carries my swing system on it-was in pivotal point.Either it would break the pivotal point and collapse or it will bounce from the pivotal point and resume the bullish trend.

I was undecided what to do, close in breakeven or continue in the trade.Finally after 29 minutes gbpjpy moved fast in +12 pips and close my first scalping target.Since I was waited for a breakout I converted the trade to intraday by canceling the trailing stop ,entering a stable stop in 92 and left the trade with 1/3 of the position to see what it will bring.

I have opened the platform again 30 minutes after the DOW open and the trade was in +101 pips.

I decided to leave it open until London close and keep the strategy wait and  see.

Twelve minutes after the London close the pair was still in no mans land giving me 100 pips and I closed everything for the day.

I have wrote everything to video as usual ,enjoy

The three pairs I watch every day with trades and remarks on them

GBPJPY

forex scalping 14 9 2015 gbpjpyGBPUSD

forex scalping software signal for gbpusd

EURJPY

forex scalping software signal for eurjpy 14 9 2015

forex scalping 11 9 2015

forex scalping 11 9 2015

Scalping went well today.Initially I have started with a fresh signal in eurjpy .The signal came up some minutes before London open.

I took the retracement and scalping target in 2/3 of the position  came in three minutes. Ideal forex scalping duration time.

Then the pair moved very slowly in the next hour and a half, lost my patience and close it in +3 pips for the rest of 1/3 position.

Wrong decision since the target I was aiming came in the next one hour.

The second trade I took in Pound Dollar and made more than an hour to pay.Finally we got the scalping target and we left a tiny piece to close with trailing  three and half hours later.

You may find useful the below information for your trading next week.

CFTC commitment of traders released September 11, 2015:

EUR shorts 81K vs 68K shorts prior week
GBP shorts 18K vs. 11K shorts prior week
JPY shorts 7K vs 16K shorts prior week
CAD shorts 49K vs 55K shorts prior week
CHF shorts 7K vs. 8K shorts prior week
AUD shorts 53K vs 56K shorts prior week
NZD shorts 12K vs 8K shorts prior week

The data is from the close of business on September 8, 2015

EUR shorts increase by 13K
JPY shorts move closer to square and near the years smallest net position of -5.4K. JPY positions have not been net positive since Oct 16, 2012 week.

Our primary target to finish the week in green was achieved again today.

I gave the title to the video  consistent profitability.

The three pairs I watch with remarks and trades on them.

GBPUSD

forex scalping gbpusdEURJPY

FOREX SCALPING EURJPYGBPJPY

FOREX SCALPING GBPJPY

 

forex scalping 10 9 2015

forex scalping 10 9 2015

Scalping didn’t started well today.

I have entered in a ranging pair the eurjpy.

I had a counter trend signal ten minutes before London open wait for the retracement and entered. The trade went red from the first minutes and gave an opposite signal.I had a chance to close in breakeven but I haven;t got a new resistance or support in the trigger chart so I didn’t close.

One hour later I paid the error for 20 pips.

While I was in the eurjpy trade I took a long signal in pound dollar and sixty minutes later I got a perfect retracement were I got in long for intraday trade.

This trade hit in the final stage approx 65 pips. I close initially 2/3 of the position but while I saw how it was approaching a resistance in the higher 2 hour time frame I  close it all.

Few minutes later it reversed and dropped 60 pips down,

The moral of the story today is: 1. close to breakeven when you have the chance and 2.  don’t be greedy.

Another day closed green with nice profit.

The title of the video with the trades consistent profitable.

The three pairs I watch

gbpusd

forex scalping gbpusd

eurjpy

forex scalping eurjpy

gbpjpy

forex scalping gbpjpy

forex scalping 9 9 2015

forex scalping 9 9 2015

We had two successful forex scalping today in Pound dollar.

The first setup came after pound news in the morning ,industrial production.

The pair moved fast to south and we took the retracement in the borders of our Tokyo box.

The first scalping target came in three  minutes which is the ideal scalping time.Trailing stop activated but unfortunately it dint lasted and hitted in less than thirty minutes,

Then the pair made another attempt to break the 50 area and we short it again.

This scalping took over one  hour and we close it with just 5 plus pips. It reversed just after we close the trade.

The other two pairs we watch didn’t gave descent setups and signal in the European morning with retracements.

We managed to remain green today too and that is what matters.

Conclusion

Ideal scalping time is less than ten minutes if a pair sticks in a specific level for a period of an hour or so it will reverse.Some people call this pattern 1 2 3 reject.

 The three pairs we watch everyday and their signals today

GBPUSD with our forex scalping trades marked

forex scalping gbpusd

gbpjpy

forex scalping gbpjpy

eurjpy

forex scalping eurjpy

forex scalping 8 9 2015

forex scalping 8 9 2015

forex scalping is not easy.

Today I felt like the man going to the casino feeding the slot machine and the time he gets disappointment and leaves his place the next guy hits the jackpot.

This thing happened in the morning with eurjpy and gbpjpy trades. The moment they reversed I was so tired to follow.They gave 100 pips plus.

In the European morning I have took a  wrong short trade in gbpusd and I sweat to close it to breakeven.

Then in the afternoon I took a long signal in eurjpy waited the retracement. Enter in the trade in correct position . Then the pair  three times it almost touched  the first target of 10 pips with 9.5 pips and dropped.

The third time I closed it to breakeven and saved my stop loss since it dropped 40 pips entering in a range period.

So I gave up for the day at least I didn’t ended red and wrote a part in the video about consistent profitability.

the Law of large number and how it impacts your trading

Before anything else, you must understand the law of large number.

what’s that?

The law of large numbers is a theorem that describes the result of performing the same experiment a large number of times. According to the law, the average of the results obtained from a large number of trials should be close to the expected value, and will tend to become closer as more trials are performed. – Probability Theory

For a trader, this means you need a large number of trades for your edge to play out.

You will not be consistently profitable every week, taking 5 trades a month.

Why?

Because according to the law of large number, results are random in the short run, but will be closer to the expected value in the long run.

Focus on whether what you are doing is right, not on the random nature of any single trade’s outcome. – Richard Dennis

What is consistency?

Since the law of large number requires a certain number of trades for your edge to play out, how does it impact your trading?

forex scalping – Trading at very high frequency, like 10,000 trades a month. You can expect to be profitable in most of the months, or even everyday like Virtu Financial.

Day trader – Trading an average of 3 – 5 times a day, you can expect to be profitable in most of the quarters.

Swing/position trader – Trading an average of 5 – 15 times a month, you can expect to be profitable in most of the years.

The more trades you put on during a shorter period of time, the faster your edge will play out.

But without an edge in the markets, the more trades you put on, leads to blowing up your account even faster.

The pairs I watch every day

gbpjpy

forex scalping 8 9 2015gbpusd

forex scalping eurjpyeurjpy

forex scalping eurjpy

forex scalping 7 9 2015

forex scalping 7 9 2015

forex scalping yesterday brought very poor results in an extremely slow market.

Initially in the London open I have lost an entry to a valid signal to gbpjpy by two pips since my limit order didn’t trigger and the pair produced a very nice  run (….pips)

Late in the US session I gave a short order in the pair which I left it open during the Tokyo session but I have close it with +5 pips early in the morning while I saw it reversing.

gbpusd gave the signal very early in the morning so I dint touch it.

eurjpy produced one of the slowest sessions I have ever seen.

I have attempted a long 15 minutes before London close but the pair reached 9.5 pips in four hours of trading without hitting my scalping target and reversed so I closed it by loosing five pips.

Then I reverse it and left it open in the Tokyo session achieving the 10 pips target but the third part of the order stop out early in the morning.

I even forgot to open the mic while I was explaining in the video.Sorry for this.

The pairs with remarks on them

gbpusd

forex scalping gbpusd

gbpjpy

forex scalping gbpjpy

eurjpy

forex scalping eurjpy

forex scalping software in-dependable

forex scalping software in-dependable

forex scalping software with in-dependable  feed from broker.This is the third part of seven steps in forex scalping success.forex scalping demands to know your tools of the trade.

A professional trading platform in-dependable from the broker you have your account and separate market feed ensures that, what you see in your charts is correct and precise.

The problem is that software costs and feed is in a monthly subscription basis.

That means that the above combination is not suggested for newbie traders with small accounts.

Of course that doesn’t mean you can’t try them in demo or trial accounts and have in your mind what is out there to help you, if you succeed in your first steps and you decide to do professional trading for a living.

A lot of software applications are available from brokerage firms and independent vendors claiming varied functions to assist traders. The deciding factor to select the right product should be based on the product functionality best fitting one’s trading needs. Novice traders who are entering the trading world can select software applications that have a good reputation with required basic functionality at a nominal cost, while experienced traders can explore individual products selectively to meet their more specific criteria.

Most brokerage firms today offer free or premium trading software applications to individual clients when they open a brokerage account. The bundled software applications, offering a wide variety of trade, research, and analysis functions, are used as a prominent sales-pitch to the trader client. They also boast features like in-built technical indicators, fundamental analysis numbers, integrated applications for trade automation, news, and alert features. We will examine some of the most widely used, based on features

I included in the list software for stocks also.

Sorry for my English I am trying to improve by use them daily.

See the video below

My trading room setup one main pc with two 22” screens networked with an auxiliary (clone of the main) notebook  all controlled by one wired  mouse and one keyboard with Synergy. Preferred platform  ninjatrader connected with one of the suggested ECN brokers.

forex scalping trading room

 

forex scalping 4 9 2015

forex scalping 4 9 2015,the crocodile pays again

Hello traders,

Forex scalping didn’t start well in the morning.

Pound dollar and pound yen had a party last night in the Tokyo session with no fresh signals.

Euro yen had a party last night after deploying a bear flag but had a fresh signal and a divergence pointing up.So I took the trade with the usual stop of 20 pips.

As you know in trading nothing works 100% of the time, so trade went sour and our stop loss is hit.

Since it was NFP day I knew it will produce weird and choppy trading so I closed the platform and I was looking for a chance after the release to take back what the market charged me for the morning counter trend trade.

Approx one and half hour after DOW open I have spotted a very tide range in gbpjpy with repetitive short and long signals in my main chart.

I spotted a fakey breakout upside and the moment the pair reversed and broke the opposite support I enter in the trade with tide stop loss.

I took the cream of the trade with the momentum hitting approx 50 pips took my losses back and some nice profit.

Everything is written in the video and trades are on the pictures with remarks.

Have a nice weekend.

The main chart of eurjpy

forex scalping 4 9 2015

The trigger and main chart of gbpjpy

forex scalping trigger

forex scalping main

The main chart of gbpusd

forex scalping gbpusd