Webring - Forex
Intraday Trading
“Do not move unless it is advantageous
Do not execute unless it is affective
Do not challenge unless it is critical”
For those of you who have been following my blog you will have seen my live videos of DAX intraday scalps, if you haven’t seen them you can see them here Live Intraday DAX scalps
I have described my chart setting for scalps here My Scalping Chart set up
As I have been asked many questions about my scalping method I will try to summarize and explain it here in a way that is easier to understand. Firstly, my scalping method is based on the above quote from Sun Tzu a famous Chinese general and author of the ‘must read’ book ‘The Art of war‘. If you google it you will find free ebook versions of it.
For me scalping is an activity which is done with full focus and maximum concentration and I really only scalp 2 periods during the day. Most of my profits come from the scalping and are supplemented by currency trading based on pivot points, support and resistance, which I will discuss in more detail in coming days. As some of you know, I meditate twice a day, once before the European markets open and once before the US market opens. The reason for this is that I want to clear my mind of all bias and clatter that has accumulated for numerous reason, so that by the time the market opens, I am focused, clear minded and ready.
As I live in London, UK, my morning scalps are executed between 08:00 London time (03:00 NY time and 10:00 London time. After 10:00 I may enter intraday swing trading, but will never allow them to chew much of the profit made from the 2 hour scalping. My next scalping session starts at 13:00 London time (08:00 NY time) until 15:30 (10:30 NY time), which means that I scalp the pre open, as earning reports and any economic news are digested by Mr. Market. For the economic news I sometimes use software which places me in a position very quickly. You can check it out here Fast Economic news software
I only scalp 3 instruments, The Dax (the German Index), the FTSE and the S&P, never scalp anything else unles it is news related, such as WTI (Crude oil) during inventory releases etc.
The only indicators I am concerned with are Bollinger bands, and the 10 EMA. You can see the setup in the following charts:
My scalping method is by now pretty intuitive, but essentially I enter with momentum build and exit when the momentum wanes. Visually, I enter once the Bollinger band has been pierced and scalp in the opposite direction. The first few minutes of the market open are intense and it is easy to make 5-10 points at a time. You need to see what the futures have been doing prior to the open as it is likely that a reversal will occur. Most importantly is that we are in REACTIVE mode, we trade what we see presented and not what we think. You may have read several articles before the open, predicting a sell off or a rally, forget them and act in the reality of now. Each time we enter a trade, we are fully focused, these trades are for 4-10 points, so any move of 3-4 points (DAX, for S&P adjust to 0.4-0.6) against our position we exit and look for a better entry. On average I trade over 150 scalps a day, making an average of 50 points a day. This is a probability game and some scalps will be expenses, and some will be profitable, we remain completely ruthless as we become one with market, 3-4 points tell you, you are wrong, get out. Very often and especially during the open, if you catch the price at a good point (top or bottom), you can get a good runner which will make 30+ points, thus you be able to finish your trading day then, or go for the reversal (which will come, every strong action will be followed by a reaction). There is no point scalping the consolidation and the consolidation period can last much longer than you think. In fact if you’re happy with what you’ve got, you may as well go and do something else. Come back later and look for a very low risk intraday swing opportunity which will have only a minimal impact of your profits so far.
Scalping is intensive and each person has their own focus time limits, get to know them, DO NOT SCALP beyond your ability to focus. Over time you can train yourself to focus for longer, but hey, make a good profit and relax.
There are many things to say, and I will happily expand if you submit questions and comments, for me this is as natural as breathing (and very similar) so I am aware that I may have missed many questions which are obvious to me. Please don’t be shy, send your questions in and I will answer as best I can. I will also record live trades that I make and place them here whenever possible.
Finally, one of the best courses I’ve ever done was a short course from Guy Finley, available here Guy Finley Organization This has done more for my trading than thousands of dollars spent on expensive trading seminars and books.
Wishing you a great day and happy scalping.
Newly Reviewed Forex Trading system that works for me at ==> Forex Rebellion
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hi
i am trading with ur scalping method and it’s been great ! plz if u can email me more details and rule u follow will be very appreciated !
happy trading
omie
Thank you, glad it works for you. Subscribe to my newletter and you will receive all new methods I use.
[...] In any event some serious focus is required to get in at a good level, or indeed scalp for smaller moves. Numerous intraday trading opportunities were presented for low risk profits. Check this blog entries for Scalping the Dax and Dax Scalping, The ABC of Profitable Trading. [...]
[...] money in the Trading Game? If the answer is no, then this post is not for you, go here ==> ABC of Profitable intraday Trading Ok, you’re still here, so now the second question is: Will you wake up tomorrow and hope [...]
[...] This is a very short post, just to let you know that I have extended my DAX scalping to the Euro now. Why? There are many fundamental changes in Europe now, with Greece issues and other members under the financial cosh. Also, my broker has reduced the spread to only 1 pip that means that it’s cheap enough to get in. The scalping method is identical to my DAX system see it here ==> DAX Scalping [...]
Hell Mark, I would like to trade your method but the page where you describe your scalping setups is not available.
Could you send me the Bollinger Band settings, Pivot Points and indicators for MT4 to my email address above please?
What do the small arrows indicate on your charts and finally do you setup all your charts with MT4 and take trades on Tradefair SB account?
Thanks
Phil
Hey Phil, looks like the page has disappeared for some reason. Will see if I can retrieve it. Anyway, the indicators I use are all regular MT4 indicators (for the scalping method). Bollinger bands are set at 14 . 1 with Standard deviation 1 and 1 with SD 2. Then I have the 10 ema and standard stochcastics. It’s a simple method of either enter with momo on break or enter on retrace. Watch the video here http://www.youtube.com/watch?v=YIJALhRGwDk
and yes I watch MT4 and trade on Tradefair and other SB accounts.
I would like to trade your method