Scalping forex strategy
There are a large number of Scalping Forex strategies , used by experienced traders FOREX, but I in turn want to tell you about a few of them - simple enough, but the effectiveness has been tested over many years trade.
To understand these trading strategies, you need to know some technical terms :
pivotal point - pivot point . Pivotal Point - is the maximum or minimum point, which reached a price movement before touching a minimum or maximum of the day.
Swing - Swing is nothing more than vibrational movement from one point of the rod pivot point to the next the next pivotal point (see the example in Figure 1).
Scalping strategy of parallel motion.
first Scalping forex strategy - a way of parallel motion (see Figure 2). This type of trade is used during the long move up or down to the use of kickbacks. The basis of this technique, trade is the idea that the quantity of motion CD must be equal to the movement of AB . Are more profitable trades open at a time when price was no more than 25% of the movement from point C to point D.
Terms of the transaction.
- conclude a deal to buy , once the price was 25% higher than the core of C and immediately place a stop loss at the point C. < br />
- Move stop-loss level before entering the market (ie zero), once the price has advanced 50% to the set benchmark.
- Once the price has passed the point In , set trailing stop - its size is 25% of traffic to your benchmark .
- Closing the deal at a profit at the point D or wait for closing the trailing stop.
This forex strategy can be used as soon as you're going to trade direction of the main trend . Do not try to catch her help with small movements against the trend. Remember that our goal in the trade, catch - complete vibrational movement in the market. It is possible that by using this strategy, you have to make deals and to enter the market several times, especially if there is a complex consolidation.
Small market trends.
If you trade in small movements of the trend, beware of the many trading systems that are based for making deals to buy at new highs and at the conclusion of transactions for sale to new lows. must move with the trend to its complete reversal . And while some very highly regarded trade system include tactics to approximate the stop-loss level for entry into the market as a whole system of buying at new highs - it is the worst of all possible options, which only leads to a double loss, just as the market is in its phase correction. All that is enough to say in favor of this trading system is that it is very useful for large oscillatory movements in the market.
Scalping trending channel.
trend channel (see Figure 3) consists of a line, 2 rods maximum soedenyayuschuyu and 2 bar minimum. Make deals for the purchase or sale on the core points of the resulting trend channel and fix the lucrative deals in the motion by 50% or 75% of the estimated vibrational next target, depending on the direction of price movement in the market. If the market is trending in an upward motion, cover the profit on sale of trading positions on the motion by 50% to the proposed lower target, or close a profitable trade on trading positions for the purchase of a 75%-th point of the market rally. In the falling trend, respectively, close trading positions for sale at 75% the second rally point of the considered down, and to buy at 50% point of the considered rally up.
safety stop-loss . Begin to place stop-loss at a distance width of the formed channel on your point of entry in the market. Then shift stop loss to the level of entry into the market as soon as the market price goes way equal to 50% below a certain benchmark. Ie we are talking about moving the stop-loss at the near the pivotal point, as soon as the market started to move in your particular area, and it makes sense to talk about the formation of the rod points.
It is possible that you may want to enter into transactions for the purchase or sale of any reaction on the points of the rally. At 2-day market moves against the trend (see Figure 4) only make deals to buy in at 50% in the presence of the upward trend and make deals to sell at a point 50% in the presence of a downtrend. Then fix the profit level to find the previous point rod. Your stop loss must be placed at the distance of the width of the resulting price channel from the point of entry into the market. Move stop-loss level at the entrance to the market, just as the market was 50% of the price movement to your specific target, ie to move the stop loss point on the rod, which was formed when the price moves in the market in your area.
If the price on the market bounced from the borders of the channel (see Figure 5) and consolidation of the first trading day went the distance in 50% of the width of the channel, bargain for the purchase of the presence of an uptrend or a bargain for sale if the downward trend in the point 75%.
There are several variants of this approach. If there is an uptrend in the market, some traders buying on the downward closure of second trading day (see Figure 6), while trying to catch a one-day pullback prices up and / or price movement in the market back to the last point rod. From this it follows that if profits were not fixed within 2 days of trading, and price in the market closes on your side (see Figure 7), or close the income, or move the stop loss at the closing (plus or minus 1 point ).
It is possible that the classical approximate short-term trade transactions may be a deal on a figure (pattern) ABC , considered in Figure 8. If the forex trader predicts that the price formation by means of his analysis (for example, analysis by Eliot), and hence should be sold at the point - at the core of A, and close a profit once covered 75% distance from the pivotal point 1 to point C .
Mixed Scalping forex strategy.
In Figure 9 you can see a set order sell stop at point C, when the price goes over 25% of the distance from point A to point B. This point of entry into the market to be below the opening level of the trading day and below the closing level of the previous trading day. Trading position is closed when the level at point B, or your particular benchmark.
In Figure 10 we see two rather strong daytime traffic down, thus there is exhaustion of the bears on the second trading day. After opening the third trading day can predict the top of the price rally up. Conclude a deal to buy at close of the previous trading day and fix the resulting profit for the closure of the third trading day.
compression in the forex market.
Once the market is in a contraction phase, we find that 2 days from the closing of the rising, with at least half the range second trading day must be higher than the closing level of the first trading day (see Figure 11). Place a pending order to sell at (a) the distance from the daily range the closing point of the second day or, if this order is not activated at the level of (b) - 1 point below the closure of the third trading day. Trading position to close the sale on the first day down at the level of traffic movements from the close of the previous trading day at the range of the second trading day (for option a), or simply by closing the first day of top-down (for option b).
The exception is when the market was formed figure ABC when the price moves up. In this case, you should wait for the second day of closing arrived.
safety stop-loss orders are placed on a distance of 1.5 day range over the top of the day to enter the market.