Linuxtroll Simple Scalping @ Forex Factory

linuxtroll · #1 Jul 14, 2007 10:17am

-Identify the time (example: EST 3:00-3:30)
-Monitor the market using <=1min time frame (use the attached setup)
-Identify the direction of the move
-Jump in and out with higher lots
-You are done for the day within 30-60min (check the charts below)
-Go out and golf

NB! Spend a few months screen time with this setup... If you detect that the price is moving against you -- jump out immediately -- you will always get better trades later... You can add Rainbow to support and capture big moves (here you can pick the time frame based on your risk capital)... Only use this scalping style with ECN and jump in when you get the spread <=zero... Keep it Simple and Smart... Make Money and Enjoy...

amenlo9 · #2 Jul 14, 2007 11:00am

can it be use on New York open?

linuxtroll · #3 Jul 14, 2007 1:33pm

Quote:

Originally Posted by amenlo9

can it be use on New York open?

Yes...

The Fxorce · #4 Jul 14, 2007 1:39pm

linux seems to be one of the few that understands the value of a pip. linux i'm searching for the best scalping techniques for 1-2 pips frequently throughout the day. My spreads are .8-1 on eurusd and usdjpy.

Can you get more advanced in this thread?

Thank you for providing everything you've provided at oanda forums and here. Good to have you here.

amenlo9 · #5 Jul 14, 2007 1:40pm

Linux,how to confirm the trend on 1 min chart?how to trade using rainbow?

Stan · #6 Jul 14, 2007 8:05pm

Linuxtroll,
Glad to see you starting your own thread.
I have been using "The Rainbow" and my trading is improving.
I still make stooopid mistakes that I realize after the fact, but they are getting further apart.
Let me ask one question here if I may...
Let's say you have identified the direction on the 1m. Do you let it continue to move in the direction and then wait for a pull back (say 33-50% or so) and then take a postion in the direction on the movement?
This is what I have been doing and it seems to work almost every time due to price action.
Movement, retracement, continuation of movement.
Thanks,
Stan

Andy12 · #7 Jul 15, 2007 12:42am

Nice to see your tread Linuxtroll!

FXSurfer · #8 Jul 15, 2007 1:13am

So glad that you started this thread, LT!
Wonderful to have you back.

FXS

Here's some eye candy for you.

linuxtroll · #9 Jul 15, 2007 11:08am

Quote:

Originally Posted by FXSurfer

So glad that you started this thread, LT!
Wonderful to have you back.

FXS

Here's some eye candy for you.

Looks like a sell to me... Jump in Surfer... LoL

I just posted my simple scalping system... You need a lot of screen time to achieve 99% hit rate (easy if you can capture one good trade per day)...

linuxtroll · #10 Jul 15, 2007 11:16am

Quote:

Originally Posted by Stan

Linuxtroll,
Glad to see you starting your own thread.
I have been using "The Rainbow" and my trading is improving.
I still make stooopid mistakes that I realize after the fact, but they are getting further apart.
Let me ask one question here if I may...
Let's say you have identified the direction on the 1m. Do you let it continue to move in the direction and then wait for a pull back (say 33-50% or so) and then take a postion in the direction on the movement?
This is what I have been doing and it seems to work almost every time due to price action.
Movement, retracement, continuation of movement.
Thanks,
Stan

Depends on the market... Mainly look for the breach of major or minor support and resistance levels; or breach of round numbers (time/price grids on the chart) for control... Whatever works for you... Following the Mantra is the key...

The Fxorce · #11 Jul 16, 2007 10:18am

Scalpers try to run stops.
When near a support resistance we see volume move strongly through the support or resistance and that is where we scalp. Very commonly we see the support become the resistance and price moves up to touch the newly formed resistance then continues down.
I have been watching John Carter's videos for a month or so and I see him doing this without saying it. Also I've been reading up on scalpers for a week and the best floor scalpers are trading this way and breakouts. It seems the best traders are all scalpers that take profits quickly then move stop to breakeven. Catching a large run on the day does not happen often.

sublimeonskunk · #12 Jul 16, 2007 5:26pm

This is gonna sound very stupid, but I dont understand whats going on here at all. I stumbled upon this from the GMMA thread and I have been using them with success on the longer time frames, but am def. interested in adding scalping to my Repertoire. Can you guys point me in the direction of more info on this. What is "The Rainbow", when you say look for breach of res/sup levels do you mean thats when we enter? I dont know, anyone want to take a stab a clarifying this mess or a question, etc.

k2kv · #13 Jul 16, 2007 6:34pm

Can someone please explain how the rainbow should be interpreted, and exactly what it is indicating?

I was able to download the template and it is indeed very pretty. But without instruction of any kind it is rather useless.

Anyone? Would be very much appreciated...

Thanks!

The Fxorce · #14 Jul 16, 2007 7:38pm

the rainbow is another way to "see" the market.
seperation means strength in trend. it's all pretty straight forward. if you look up guppy moving averages you'll learn more than you ever wanted to know about how the master trades them.

Linux has been using them for a long time and obviously he is still kicking so must be doing well.

I made a comment about scalping around stop areas. look for areas that should hold many stops just below support for example and try to take a pip out of that area as it's going down to knock them out. it's most likely going to whip back up to the previous support so just take your 1-2 pips. you can't do this on a retail broker with 2 pip spreads. you need to use 0-.5 pip spreads.

hope this helps.

thegunslinger · #15 Jul 16, 2007 7:43pm

Quote:

Originally Posted by sublimeonskunk

This is gonna sound very stupid, but I dont understand whats going on here at all. I stumbled upon this from the GMMA thread and I have been using them with success on the longer time frames, but am def. interested in adding scalping to my Repertoire. Can you guys point me in the direction of more info on this. What is "The Rainbow", when you say look for breach of res/sup levels do you mean thats when we enter? I dont know, anyone want to take a stab a clarifying this mess or a question, etc.

Basically, yes. I'm no scalping trader, but I think I understand the basic premise of what they do.

When price breaks through a S/R level, it does so with conviction. Volume picks up and price moves through the level fairly quickly and on to the next level of S/R. The scalper would enter the trade as soon as it appears that S/R is broken and quickly take profits after it has moved a few pips. That's why Linux states that to be successful with this strategy, you need to be with a broker that has minimal to no spread.