Linuxtroll Simple Scalping | Page 160 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Trying scalping with a 1000 bucks - Scalping is expensive! 39 replies

Indicators and Rules for Simple Method of Scalping GBP/Jpy on 5 min chart 18 replies

1M & 5M Scalping System (Scalping Paradise) 21 replies

Simple Scalping System 64 replies

xPip Simple Scalping 27 replies

Attachments: Linuxtroll Simple Scalping
Exit Attachments

Linuxtroll Simple Scalping

  • #3,181
  • Nov 1, 2007 1:56pm Nov 1, 2007 1:56pm
Quoting >Apocalypto<
5 second is so fast i am still in screen time mode on that.

I am using Oanda demo for charts and EFX for trading. I have found the eur/jpy to be a little to fast. So I am concentrating on the pair that I position trade the AUD/USD

Has anyone else had probs trading the eur/jpy? I don't know why on the aud and euro making 20 -30 and losing on a couple is a much easier task then euro/jpy, on that i am always getting my ass kicked!

another point is aud/usd brokerage is only 9.40 in and out compared to 14$ on the eur/usd and eur/jpy
Coincidence; Yesterday, I have took screentime on the AUD/USD and I liked it. The market is fast, but not too fast (like E/J) and still makes big-moves.

Today I have traded the AUD/USD in the London-session for the first time and it was not disappointing. So in the future I'll track and research the AUD/USD and maybe I'll dedicated myself to this pair.

I have some problems with the EUR/JPY, especially on Friday and when the market is slow. EUR/JPY is (very) fast, so I'll jump-in to late on the 5 sec chart. But that's only my fault. AUD/USD seems to fit me on 5 sec for my daily pip-target.

Time will tell...
Attached Image (click to enlarge)
Click to Enlarge Name: SBA_.jpg Size: 336 KB
  • #3,182
  • Nov 1, 2007 4:38pm Nov 1, 2007 4:38pm
I can't speak on the AUD/USD's behalf, but I'm glad that someone has decided to learn the behavior of the pair. Here is what I can contribute about EUR/USD vs EUR/JPY.

A fast moving pair is not all bad.
Clearly, the EUR/JPY has periods where the movement is absurdly fast; much more so than the EUR/USD and probably the AUD/USD. My take on it is that while the EUR/JPY is more volatile (larger range during a period) than EUR/USD, the direction of the movement is much more predictable than that of EUR/USD. Take a look at each on the 5sec rainbow chart during volatile periods, and you can see that EUR/USD makes its moves in big leaps, then settles down, followed by another big leap. The EUR/JPY on the other hand will ease into the move, and often times form a rainbow pattern that you can recognize and profit from. Be careful though... the EUR/JPY is may bring in more profit than EUR/USD during large price swings, but when it ranges, it can hurt you more so than the EUR/USD.

Tight ranges are not for the yen.
I also noticed during my rainbow scalping sessions that once the price volatility fades on the EUR/JPY, so does my profit. I have consistently lost trades when forcing rainbow pattern analysis on a tightly ranging market (say 10-20 pips). However, the EUR/USD trades were not as painful during this time. I attribute this to the lower spread offered from the EUR/USD pair, and the fact that EUR/USD is traditionally more liquid than EUR/JPY.

So my conclusion is that rainbow scalping the EUR/JPY leads to greater profits during price swings because of its more predictable nature but greater losses during range conditions because of its larger spread. Scalping the EUR/USD leads to mediocre profits during price swings because it traditionally doesn't move as much as the EUR/JPY and is less predictable in motion, but can lower your losses during times of range bound trading.
  • #3,183
  • Nov 1, 2007 5:27pm Nov 1, 2007 5:27pm
Though EUR/USD doesn't have such large ranges as EUR/JPY, it too has ranges where you can make a good profit. That of course comes with screen time. I used to trade EUR/JPY exclusively months before I even found this thread. However, what I've noticed is (when comepared to EUR/JPY) that EUR/USD moves more 'fluidly' and 'smoother'.
Personally I think that given enough screen time, anyone can profit from using the rainbow method on pretty much any pair when taking the spread into account, even those pairs that don't move 25 pips in one swing. A profit is still a profit.
  • #3,184
  • Nov 1, 2007 5:49pm Nov 1, 2007 5:49pm
What a fun day to ride the Rainbow! I had some winners and some losers. Ended the day up about 80 pips! This was a trade that profited 60 pips. Any analysis is welcome!

Glen
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 2007-11-01_164144.png Size: 32 KB
Click to Enlarge Name: 2007-11-01_164558.png Size: 23 KB
  • #3,185
  • Edited 6:39pm Nov 1, 2007 6:09pm | Edited 6:39pm
Hey everyone. Here's a question-challenge for you guys. I want to know if anyone has a different opinion. So here it is:

After reading and rereading some posts of the thread everything seems clear but one thing: SPINE CROSSING H-LINE RULE. Different people use different spines:144, 156, 240 wma etc. Every one of them crosses h-line at different times. So the only possible explanation I can come up with is simply a psychological trigger - just another confirmation to jump in a trade (you're already almost sure but still hesitating) . Of course you have to pick one spine and stick to it (I've seen people here marking all three )

Any other ideas?
Attached Image (click to enlarge)
Click to Enlarge Name: ScreenShot001.png Size: 43 KB
"Nothing is unexplainable, Everything is mystery" W. Liquorman
  • #3,186
  • Nov 1, 2007 6:27pm Nov 1, 2007 6:27pm
Trading the Japanese open,

I have for a few mornings now watched and attempted to trade the Japanese open, with very mixed results mind u. I have noticed that the london open and lead up to the USA open are much better times to trade. Any one else notice this? I know london and Europe are the biggest markets. But I thought the yen crosses would really fire up in Japan open.

Cheers
  • #3,187
  • Nov 1, 2007 6:45pm Nov 1, 2007 6:45pm
Quoting shutopia
I can't speak on the AUD/USD's behalf, but I'm glad that someone has decided to learn the behavior of the pair. Here is what I can contribute about EUR/USD vs EUR/JPY.

A fast moving pair is not all bad.
Clearly, the EUR/JPY has periods where the movement is absurdly fast; much more so than the EUR/USD and probably the AUD/USD. My take on it is that while the EUR/JPY is more volatile (larger range during a period) than EUR/USD, the direction of the movement is much more predictable than that of EUR/USD. Take a look at each on the 5sec rainbow chart during volatile periods, and you can see that EUR/USD makes its moves in big leaps, then settles down, followed by another big leap. The EUR/JPY on the other hand will ease into the move, and often times form a rainbow pattern that you can recognize and profit from. Be careful though... the EUR/JPY is may bring in more profit than EUR/USD during large price swings, but when it ranges, it can hurt you more so than the EUR/USD.

Tight ranges are not for the yen.
I also noticed during my rainbow scalping sessions that once the price volatility fades on the EUR/JPY, so does my profit. I have consistently lost trades when forcing rainbow pattern analysis on a tightly ranging market (say 10-20 pips). However, the EUR/USD trades were not as painful during this time. I attribute this to the lower spread offered from the EUR/USD pair, and the fact that EUR/USD is traditionally more liquid than EUR/JPY.

So my conclusion is that rainbow scalping the EUR/JPY leads to greater profits during price swings because of its more predictable nature but greater losses during range conditions because of its larger spread. Scalping the EUR/USD leads to mediocre profits during price swings because it traditionally doesn't move as much as the EUR/JPY and is less predictable in motion, but can lower your losses during times of range bound trading.

I have been comparing the two pairs as well for a while and even though the eur/jpy has large swings with greater profits, we have to take into account that greater profits go in hand with greater losses.. It all depends on a trader's risk appetite.. Eur/usd with exceptionally low spreads, might be easier on the nerves for someone not looking to have a price go against them too much and be happy with a 2 pip to 3 pip profit. Considering a spread of 1 pip usually, u can let a position go against you by 2 pips or so and try to keep a risk to reward ratio pretty close to 1:1. I've found that to be pretty hard to maintain on the jpy crosses because of the spread, even if you let it go against you by a few pips you are sitting at 5 pips atleast as a drawdown.
  • #3,188
  • Nov 1, 2007 7:03pm Nov 1, 2007 7:03pm
Quoting eyecelll
Hey everyone. Here's a question-challenge for you guys. I want to know if anyone has a different opinion. So here it is:

After reading and rereading some posts of the thread everything seems clear but one thing: SPINE CROSSING H-LINE RULE. Different people use different spines:144, 156, 240 wma etc. Every one of them crosses h-line at different times. So the only possible explanation I can come up with is simply a psychological trigger - just another confirmation to jump in a trade (you're already almost sure but still hesitating) . Of course you have to pick one spine and stick to it (I've seen people here marking all three )

Any other ideas?
Aggressive level...
  • #3,189
  • Nov 1, 2007 7:18pm Nov 1, 2007 7:18pm
Quoting eyecelll
Hey everyone. Here's a question-challenge for you guys. I want to know if anyone has a different opinion. So here it is:

After reading and rereading some posts of the thread everything seems clear but one thing: SPINE CROSSING H-LINE RULE. Different people use different spines:144, 156, 240 wma etc. Every one of them crosses h-line at different times. So the only possible explanation I can come up with is simply a psychological trigger - just another confirmation to jump in a trade (you're already almost sure but still hesitating) . Of course you have to pick one spine and stick to it (I've seen people here marking all three )

Any other ideas?
The difference between 144 & 156 is negligible... and actually, I have my spine set at 150 because it's a nice, round number. However, the 240 I think is for the more conservative trader, who wants to use it as sort of a trailing stop or reflection of the longer-term trend*.

* A 240 wma on a 5 sec chart is really close to a 120 wma on a 10 sec chart, 40 wma on a 30 sec chart, 20 wma on a 1 min chart, etc... seriously. I found this out a few years ago while playing around with different MAs on different time period charts. It also works the same with other types of MAs, as long as they're all the same type of MA... guess it's the magic of MAs.
  • #3,190
  • Nov 1, 2007 7:20pm Nov 1, 2007 7:20pm
O I have had a bad morning!

I have been smacked around harder then a bag at boxing training! Thank god i am on demo!
  • #3,191
  • Nov 1, 2007 7:25pm Nov 1, 2007 7:25pm
  •  Yuppie
  • Joined Jun 2007 | Status: ̿ ̿ ̿̿'̿̿\̵͇̿̿\=(•̪●)=/̵͇̿̿/'̿̿ ̿ | 2,727 Posts
Quoting eyecelll
Hey everyone. Here's a question-challenge for you guys. I want to know if anyone has a different opinion. So here it is:

After reading and rereading some posts of the thread everything seems clear but one thing: SPINE CROSSING H-LINE RULE. Different people use different spines:144, 156, 240 wma etc. Every one of them crosses h-line at different times. So the only possible explanation I can come up with is simply a psychological trigger - just another confirmation to jump in a trade (you're already almost sure but still hesitating) . Of course you have to pick one spine and stick to it (I've seen people here marking all three )

Any other ideas?
It's pretty basic Eyecelll...

It really has [almost] nothing to do with the MAs... What is key... is how you interperet the MAs...

You can have 10->240 or 6->156... It really does not matter... Pick either one... or pick any configuration in between... there is nothing significant about any of these numbers.... What is significant is learning how to interperet them on your chosen pair...

The Rainbow does help visually though... Why do so many people customize the Rainbow?... Because everyone is different... Taking some MAs away; adding some extra MAs; changing the colours; etc does not make it better/worse or more/less effective in itself... It just may be more effective for you if you do this... because it helps you to interperet it better...

I changed the colour of the Rainbow after a couple of days - I found the solid colour too hazy; and I found the multi-coloured one too busy... I changed the spine to be more solid, the middle MAs to be the same colour, and the flame to be more distinct... I have seen many others (including LT on his last post) also adopting this since then...

It is how the Rainbow observer interperets their Rainbow that is the overiding factor to success.


Magnus
  • #3,192
  • Nov 1, 2007 7:37pm Nov 1, 2007 7:37pm
Quoting shutopia
I can't speak on the AUD/USD's behalf, but I'm glad that someone has decided to learn the behavior of the pair. Here is what I can contribute about EUR/USD vs EUR/JPY.

A fast moving pair is not all bad.
Clearly, the EUR/JPY has periods where the movement is absurdly fast; much more so than the EUR/USD and probably the AUD/USD. My take on it is that while the EUR/JPY is more volatile (larger range during a period) than EUR/USD, the direction of the movement is much more predictable than that of EUR/USD. Take a look at each on the 5sec rainbow chart during volatile periods, and you can see that EUR/USD makes its moves in big leaps, then settles down, followed by another big leap. The EUR/JPY on the other hand will ease into the move, and often times form a rainbow pattern that you can recognize and profit from. Be careful though... the EUR/JPY is may bring in more profit than EUR/USD during large price swings, but when it ranges, it can hurt you more so than the EUR/USD.

Tight ranges are not for the yen.
I also noticed during my rainbow scalping sessions that once the price volatility fades on the EUR/JPY, so does my profit. I have consistently lost trades when forcing rainbow pattern analysis on a tightly ranging market (say 10-20 pips). However, the EUR/USD trades were not as painful during this time. I attribute this to the lower spread offered from the EUR/USD pair, and the fact that EUR/USD is traditionally more liquid than EUR/JPY.

So my conclusion is that rainbow scalping the EUR/JPY leads to greater profits during price swings because of its more predictable nature but greater losses during range conditions because of its larger spread. Scalping the EUR/USD leads to mediocre profits during price swings because it traditionally doesn't move as much as the EUR/JPY and is less predictable in motion, but can lower your losses during times of range bound trading.
Very interesting observation shutopia,

Indeed, eur/jpy = eur/usd x usd/jpy, so when the latter two move in tandem (carry trade wind/unwind) ej makes big moves, while in slower market conditions it would be reasonable to trade single pairs (eu or uj) because ej may provide many false signals. Knowing when to trade and what to trade is one of the key points. Screentime solves everything
"Nothing is unexplainable, Everything is mystery" W. Liquorman
  • #3,193
  • Nov 1, 2007 7:43pm Nov 1, 2007 7:43pm
Quoting eyecelll
Very interesting observation shutopia,

Indeed, eur/jpy = eur/usd x usd/jpy, so when the latter two move in tandem (carry trade wind/unwind) ej makes big moves, while in slower market conditions it would be reasonable to trade single pairs (eu or uj) because ej may provide many false signals. Knowing when to trade and what to trade is one of the key points. Screentime solves everything
Yep. In fact, I have smaller charts of the E/U and U/J on the side, so I can glance at them every once in a while. By the very logic of currency pairs, when these move in the same direction, the E/J is sure to make a large move in that direction... when they move in opposite directions, expect the E/J to become choppy.
  • #3,194
  • Nov 1, 2007 7:47pm Nov 1, 2007 7:47pm
Quoting Yuppie
It's pretty basic Eyecelll...

It really has [almost] nothing to do with the MAs... What is key... is how you interperet the MAs...

You can have 10->240 or 6->156... It really does not matter... Pick either one... or pick any configuration in between... there is nothing significant about any of these numbers.... What is significant is learning how to interperet them on your chosen pair...

The Rainbow does help visually though... Why do so many people customize the Rainbow?... Because everyone is different... Taking some MAs away; adding some extra MAs; changing the colours; etc does not make it better/worse or more/less effective in itself... It just may be more effective for you if you do this... because it helps you to interperet it better...

I changed the colour of the Rainbow after a couple of days - I found the solid colour too hazy; and I found the multi-coloured one too busy... I changed the spine to be more solid, the middle MAs to be the same colour, and the flame to be more distinct... I have seen many others (including LT on his last post) also adopting this since then...

It is how the Rainbow observer interperets their Rainbow that is the overiding factor to success.


Magnus
It's all true Magnus, but my post was about the spine, actually spine crossin h-line rule. What I meant to say is that it's pretty useless and probably even harmful to have all three spines on a rainbow. Customizing your rainbow is ok unless you put more than one spine on it.
"Nothing is unexplainable, Everything is mystery" W. Liquorman
  • #3,195
  • Nov 1, 2007 8:02pm Nov 1, 2007 8:02pm
Btw, welcome back Magnus. Hows your progress?
"Nothing is unexplainable, Everything is mystery" W. Liquorman
  • #3,196
  • Nov 1, 2007 8:19pm Nov 1, 2007 8:19pm
GBP/USD is a fluid pair that you can also sort of ride to waves up and down with confidence. I kept my eye on this pair all day today. Nice moves.


DeeNY
  • #3,197
  • Nov 1, 2007 8:35pm Nov 1, 2007 8:35pm
Quoting Yuppie
It's pretty basic Eyecelll...

It really has [almost] nothing to do with the MAs... What is key... is how you interperet the MAs...

You can have 10->240 or 6->156... It really does not matter... Pick either one... or pick any configuration in between... there is nothing significant about any of these numbers.... What is significant is learning how to interperet them on your chosen pair...

The Rainbow does help visually though... Why do so many people customize the Rainbow?... Because everyone is different... Taking some MAs away; adding some extra MAs; changing the colours; etc does not make it better/worse or more/less effective in itself... It just may be more effective for you if you do this... because it helps you to interperet it better...

I changed the colour of the Rainbow after a couple of days - I found the solid colour too hazy; and I found the multi-coloured one too busy... I changed the spine to be more solid, the middle MAs to be the same colour, and the flame to be more distinct... I have seen many others (including LT on his last post) also adopting this since then...

It is how the Rainbow observer interperets their Rainbow that is the overiding factor to success.


Magnus
Numbers make the difference... I have released several Rainbows, to help others to adopt it (for many years)... My last post Rainbow is a different animal (Camilla and I used it for our Auto Trader for several years) - that's where the name flame and spine generated... I screen captured it from our auto trader... Note - the Orange color for Money - Gold - Symbolic thing...

Original Rainbow with the colors help you identify the entry/exit and trend strength -- that's an advanced level -- for manual scalping... Single color will not show those levels... Hope this clear your thoughts...

Anyway, whatever works for you... but do not tweak too much...
  • #3,198
  • Nov 1, 2007 8:37pm Nov 1, 2007 8:37pm
Quoting DeeNY
GBP/USD is a fluid pair that you can also sort of ride to waves up and down with confidence. I kept my eye on this pair all day today. Nice moves. DeeNY
Charge on... Master it and own it... First find out the times it moves and scalp only during those times...
  • #3,199
  • Nov 1, 2007 9:22pm Nov 1, 2007 9:22pm
Quoting linuxtroll
Aggressive level...
Aggressive traders use spine?

"Nothing is unexplainable, Everything is mystery" W. Liquorman
  • #3,200
  • Nov 1, 2007 9:27pm Nov 1, 2007 9:27pm
I was going through some previous posts and found gold!
I think nobody will mind if i post it again...
Attached Image (click to enlarge)
Click to Enlarge Name: linuxtroll.png Size: 105 KB
"Nothing is unexplainable, Everything is mystery" W. Liquorman
3 traders viewing now