GBPJPY scalpers

still waiting i have upper target 199.9


But do not love the way everthing has gone vertical with NO pullback

Interesting thing is that the Gann Fann on 60 minute now shows resistance as well as my 199.50 being one of the targets. The RSI also shows a possible negative divergence. I have a hunch that this is one of those "up and down days"...

Al I think you are right

199.35 failed

everything that goes vertical has to pullback I think

50% fib of morning move is 198.44 , 61,8% is 198.2

I did my 100 pips for the day

I am out of here , i hate sitting in fornt of computrer for hours and hours.

2.45 hours of traidng today.

Have a great day all

Be back later this evening and see what happened .

Tomorrow is another day

WE have bearish div rsi on 4 hour chart YM. i expect a drop / profit taking in next day or so

c ya malcolmb

Hey Malcomb et al,

Do you factor in the "Average Daily Range" of the GJ (reputed to be 240?) in setting your targets? This beast doesn't like rules too much!

Best,

I'm now long to 199.70, possibly 201.00....We'll see what pans out at the 190.70 though. I am still expecting a move down soon though.

I do not understand your question. I trade what i see on 5 min charts , with resistance and support , moving averages and any other thing I see on the charts taken into account.

I do not like to spend to long swing trading this one , yes you can make good pips that way , but you can get massive draw downs.

I believe in freedom from trading .... get in , make pips , get out .. hit and run trading. I like the 4am to 8am PST time in the euro / us overlap

Target is 30 - 50 pips a day , hey if i get more i will not complain.

If I get no trade in my trading window I will not complain either. .... likley that means that there was no decent , safe trade trigger or my mind set was not there to trade. Sometimes a good trade is not to trade.

For targets I use 1-2-3 buy and sell triggers with fib extensions plotted on them. They work well .

Right now she is flagging on 5 min at 199.40 zone .... either getting ready for drop or breakout to test 200 level

Thanks for the quick reply, Malcomb. My question was related to how much movement one can expect daily from the GJ. Today's range so far from 0:00 to current is 216 pips. If the Average Daily Range is 240 and was a consideration, one may expect a pause before heading north again. However, with the success of this thread/your system, I wouldn't begin to consider this if you do not already. In other words, if it ain't broke, don't fix it!!!

Thanks for your generosity with the thread!

Best,

I do not really know the daily range to tell you the truth.

The reason gj would head north right now is cause DJ-30 is flagging and looks set to be breaking to the upside.

big moves in everything today , gbpchf , euraud , eurcad ,etc etc

Malcolm,

Great going!

Perhaps you can summarize that exact trade when you have some time. I know you said you use a whole bunch of stuff, ie: MA's etc, but it would be nice to get an idea of the steps you took, including the RSI indicator...If you cant do it, no worries :-)

No rush..

Al

Turn coming at 9:35 PST...possible high..time will tell

201.00 very doable at this point.

Malcolmb, This is impressive. You are the first trader that I know off that does not spend most of his time gazing at the computer screen and you make money. Unbelievable! hat's off to you.

This was a trade using the standard or rapid rsi .

So we had a bull flag formed this morning after the overnight run up.

61.8 % fib of 196.85 to 198.62 was tested at the bottom of the flag. This alone would have made for a nice trade trigger, however I never like to rush into a trade and always wait for confirmation of trend reversal.

Shortly after Standard rsi ..14 setting ..crossed up thru 30 , entry 20 pips higher ,this was also break out of top of flag. I had at least 20 pips to the 50 sma , that might have formed Resistance , so I took trade.

I took profits of the table before the new came out at 198.4 pullback zone , then news came out and it went nuts.

2nd trade was a simple breakout of the 198.70 level with buying volume coming into the dj-30 futures, ( I could see this off market depth chart). i knew that the buy on the breakout was safe., Again i took profit of table at consolidation zone.

Yes I left a bit on table both time , and could have made 220 pips for the day , but... 1) did not like holding long before news came out as most news seems to be bad these days
2) took profit off the table second trade as was close to my time window that I like to trade (till 8:00 pst) , and was happy with my 100 or so pips for the day

You do not need to spend more than 3.5 hours a day trading. More than this and sure you can make more $$$$ , but you also over trade and lose focus as a day trader , and could potentially lose money. Swing traders .. err on gj stand to have large draw downs inflicted upon their accounts.

I instead prefer to go away for the day after i have reached profit targets , and come back to her the next morning with a fresh mind.

I am getting a trading website going in the next could of weeks that I will be posting lives trades in ... kind of like in here today , but in real time. It will be subscribed website , but 1st 2 weeks will be free. We will be trading 4:30 pst to 0800 pst only.

Today I might be back in at 11:30 pst for last 1.5 hours for US markets as there will liekly be a 100 pip drops if the stock day trader longs cover into close.

Thank you, Malcolm.

Excellent trade!!

Al

gbpchf 5 min flagggin ... might give opp for long on breakout

Oh Wonderful thread and i hope you guys are enjoying it.

Well, the trading system i use is for scalping and i have been making good profits with it.

Scalping is a very good trading strategy but I will like to encourage you that this strategy is not for all traders because of the emotion and risk involved. It is an advanced trading method that needs to be mastered before committing your live account. The scalping trading strategy that I will be sharing involves simple indicators; MACD and MOVING AVARAGE(s).

The MACD is an acronym for Moving Average Convergence/Divergence. It is a trend following momentum indicator that shows the relationship between two moving averages of prices. The MACD default is the difference between a 26-day and 12-day exponential moving average. A 9-day exponential moving average, called the signal or trigger line is plotted on top of the MACD to show buy/sell opportunities.

MACD’s can be used as an oscillator, does that sound too technical? No! Oscillators indicates that the asset will revert back to its mean valuation OR a Momentum indicator; indicates that the trend is strong and will continue. Parameters: The MACD line is the difference between the 12 and 26 day EMA. The signal line is the 9 day EMA of the MACD. Visually, the MACD consists of three elements, like the MACD, it is a line plotted on the bottom of the chart. The MACD line. This is simply the difference between the 12 and 26 day EMA. It is a line plotted on the chart. The Histogram. The MACD histogram is simply a bar chart located at the bottom/top of the chart, where the MACD and signal lines are plotted. The histogram is simply a visual representation of the difference between the MACD and the signal line. The “zero” point of the histogram — meaning the point where the bars cross above and below — is referred to as the centerline.

A Trade Signal is received when the MACD crosses the signal line. Traders can enter positions following the direction of the MACD Overbought/Oversold. No specific numbers indicate whether it is overbought or oversold, but if it is relatively far from its mean compared to its recent history, this may suggest that it is due for a decline. Divergence occurs when the pair makes new highs/lows but the MACD does not, this suggests divergence, and that the trend may in fact be weakening with a reversal in store. The MACD crossover is a straight-forward indicator that provides precise timing for entry points. The one drawback of this indicator is that it is sometimes too slow to provide a signal. Sometimes it signals an entry several candles after the ideal entry point. The price has already moved far enough that the trade no longer has a favorable risk: reward ratio. Always consider support/resistance when entering a trade regardless of the crossovers.

MACD is truly a trend following indicator - sacrificing early signals in exchange for keeping you on the right side of the market. When a significant trend developed, the MACD would alert you on how to capture majority of the move. Moreover, MACD proves most effective in wide-swinging trading markets and there are three popular ways to use the MACD: Crossovers, Overbought/Oversold Conditions, and Divergences.

CROSSOVERS: The basic MACD trading rule is to sell when the MACD falls below its signal line. While a buy signal occurs when the MACD rises above its signal line. It is also popular to buy or sell when the MACD goes above or below zero line.

OVERBOUGHT OR OVERSOLD CONDITIONS: The MACD is also useful as an overbought or oversold indicator. When the shorter moving average pulls away dramatically from the longer moving average (i.e., the MACD rises), it is likely that the security price is overextending and will soon return to more realistic levels. MACD overbought and oversold conditions exist vary from security to security.

DIVERGENCES: This is an indication that an end to the current trend may soon change when the MACD diverges from the security. A bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. A bullish divergence occurs when the MACD is making new highs while prices fail to reach new highs. Both of these divergences are most significant when they occur at relatively overbought or oversold areas.

Now, for the Scalping Trading Strategy, you will modify the MACD default by 2 deviations. And you must follow the trading rule strictly, work on your trading plan and target per trade. Preferably, 5 to 10pips is attainable with this system but once you make your target, PLEASE close your trading platform to avoid over trading, agreed and losses. Does it sound funny? You can not exempt yourself from the fact that emotions can’t rule your trading strategy and plan when you over trade.

To set up MACD for scalping, subtract 2 from the default parameters i.e. Fast EMA = 12 to 10, Slow EMA = 26 to 24, MACD SMA = 9 to 7, Apply to Close. Select the Color Tab and change the color to your favorite, you could also increase the line style. Click the Levels Tab – Add the Zero line and also change the color. You could also double-click the Description space opposite the zero value and type “Center Signal” and increase the line style too. Under the Visualization Tab, deselect the “All Timeframes” and select M15 only because this trading strategy work best on 15 minutes chart and you could also try it on 5 minutes. But I recommend 15 minutes because of how emotional and noisy the 5 minutes chart is.

Add EMA 4 (yellow), LMA 10 (DarkTurquoise), LMA 120 (white), LMA 40 – 90 (red) to your trading chart.

HOW TO INTERPRETE THE MOVING AVERAGES: Exponential Moving Average (EMA) 4 is the fast EMA, Linear Weighted Moving Average (LMA) 10 is the slow LMA, LMA 120 is the Trend line while LMA 40 to 90 signifies how stronger or weaker the trend of the market is. Let me quickly state here that; do not trade when the market is trendless/sideways or consolidating because the opportunity of trading is always indecisive. I believe you know that there are three types of market trend; and you should not trade against the trend because the probability of trading along the trend is more than trading against it.

BASIC SYSTEM RULES:
Buy Signal
Notice the confirming indicators: EMA 4 crossed LMA 10 upward on up trend is advisable and realistic of achieving your target daily i.e. both moving averages crossed LMA 120, then set your Stop Loss 10pips below the LMA 120 or look for the swing low. Also confirm you signal when the MACD histogram is above the 0 line; signaling upward momentum.

Sell Signal
The chart is an example of SELL signal. Notice how MACD Histogram went from positive to negative, and how the moving averages confirmed the sell signal. The EMA 4 crossed LMA 10 down. Set your Stop Loss 10pips above the LMA 120.

When LMA 40 – 90 are above the LMA 120, it implies that the market is in up trend while below LMA 120 signifies down trend. You should also watch for overbought and over sold. Do not join the traders with mentality of “it will soon reverse” at losses. Get the trend as early as possible and follow the trend to maximize your profits.

Using 15 minutes chart, 10 to 20 pips is a realistic initial profit target, especially if you are trading EUR/USD, GBP/USD, USD/JPY. Even the other major currency pairs should yield this much on a properly measured signal.

TRADING PERIOD FOR THIS STRATEGY: Always watch out for good trading opportunity between 7:45 am NG time to 11:45 am for morning trading session, while 1.00 pm NG time to 3.45 pm is advisable for afternoon session.

TARGET: The purpose of scalping is making small profits while exposing a trading account to a very limited risk, which is due to a quick open/close trading method. I will advise you go for 10 pips plus spread per trade and demo trade this strategy for a month before going live with it. You could even go for 5 pips if you notice that the market is almost at it peak.

HIDDEN SECRETS: An additional advantage for traders technically is when there is no major news affecting the market. You will always see a clear trend for the day. When trading using technical indicators, make sure you know when the news is going to be released so that you can position yourself. i.e. close your trade 10 to 15 minutes before the (FA) news. Then 15 minutes after the (FA) news, you could trade.

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