Scalping the pip out of it

Good Man!

A couple of quick questions Mike.

Do you have a link reference for Irmans system and for Jackos Anti hedge?

Thanks for participating

Sorry tonyo That last one was for you

Let me dig it up!

http://www.forexfactory.com/showthread.php?t=27286

http://www.forexfactory.com/showthread.php?t=48926

Okay thanks. I took a look at Irmans system and it def has a lot of value. I see that he takes stoch as it crosses 0 line instead of high low triggers. I wonder if that has more value or longer trades.

Honestly the Jacko system kind of turns my stomach. Not that there isnt any value there. I just scares the heck out of me. A lot of exposure to the market. Might hurt in a consolidating.

I will try to look at it in terms of my trading style

Jacko's system is for longer term. which is where I'm trying to head. But I use the anti hedge and it has worked out pretty well for my 5 min scalps. Try it I think you will be amazed. It kind of throws off your signals though.

I try to stay out of consolidating markets for lack of volume.

http://i31.tinypic.com/54vci1.gif

Interesting.

Good week fellas


I am going to explain one thing that i see in the scalping market that i stay away from. BREAKS.

Whether you are talking about 123 breaks, Pennant breaks, or trendline breaks, I dont like to trade any of them. Now some of the more experienced traders might be going " ok here we go with another stupid reason for not trading a good setup ". Ready? Ok it is becasue i am a WUSS.

The setups that I take are qualified by my standards, which includes stop loss minimizing entries. Thats why i use fibs. I truly do not take as many trades as some but I am VERY consistent with my winners.

Ok here is the thing. Breakouts are just that because price was rejected at some point for some reason.............good I am glad you are coming along with me on this. the reason for price rejection is important to understand.
It can happen for a number of reasons. News can change the direction of a currency. But lets be honest, most smaller intraday changes come from a different catalyst.

Order levels are the prime reason for small price rejection the usually follows with a resumption of trend. I WONDERED WHY FIBS WORK. LOL
A lot of the reason I dont trade breaks is that you are often pushing into an AMBUSH! of limit orders that push price right back down. Then price has to come back up and hopefully not get slapped across the face by more Market orders, limits , stops, etc.


123's are rough because where do you get in? where is your stop gonna be? I do not like to have more than a 10 pip stop when I scalp, cause come on I already have to cover 8 pips of spread. That is a 20 pip hit whenever i am wrong. Dont get me wrong they are powerful reversal indication but as usual I wait for the retrace.


Trendline breaks have to be almost the most worthless thing every #@^&ing invented. I mean come on, It breaks a price then if it comes back to test the same trend line. The test is at a much higher point cause of the ascension of the line. I might like to try punching myself in the face to work on my upper body strength as well.

If you have a huge roll, and you have good money management. Kudos.
If you want to trade breaks you are a cowboy and a M er F er

Like i said I am a wuss and that is why I trade up 75% accurate.

Have a great weekend
Put it in the bank
piitb

Hey brick. What in the world are we looking at? A little explanation goes a long way. Thanks for the hit.

Speak to you guys later!

why dont you trade with an ecn at a reduced spread. have you looked at chf/jpy, alot of overlapping movement and fairly easy to gain 10-15 pips several times a day.

You make good point. I dont change broker because it is a pain in the butt for me. I know it is a bad excuse. I do however look at the CHF/JPY cause it someitmes pulls other JPY currencies.

When I have 50K lying around i will prolly go with Dukas. My fav!

Do you scalp the JPY crosses?

I shall contribute where I can. I much prefer being in the market for the shortest period of time as possible. Why, I just have not developed the psychology (atleast not yet), to stay in the market for 50-100 pip moves, while having a 50 pip stop. Many a times I have seen the market go that much in my favour after I have gotten out. So long as I take my aim (target, whatever you like to call it) I am happy to get out. Not sure if I would call my style scalping (and neither yours, because if you can get 40 pips in a move, is that really scalping?). I would rather call it in and out. I am at work atm, so can not post charts, but might do when I get home.

Below is my contribution to this thread, and below that is what I would like to get out of this thread.

1. Here is what I look for, CONFLUENCE and CO-RELATION. Learnt the hard way, but I used to just have the eur/usd chart up, and many times, pivots, s&R levels were way away, so I would enter on break of consolidation, without any warning, the thing would reverse. Further research led me to start looking at mutliple currencies. The result of all this reading and research led me to the following setup: I have all pairs open up with a 15M chart, and pivots on them. Daily, weekly, mthly. I am not good with fibs atm, so do not use them, but hope to one day. Then I have my scalping charts up as well, which are derived from LinuxTroll's rainbow setup, on 5sec and 30 sec charts.
I primarily trade UJ and Eur/usd. But will also trade GU if setups are there. I try to stay away from GY atm, but am studying it, mainly because the thing can go against you 15 pips before u can even look at the other monitor. I will have directional bias for the day as well, which is determined from the 150ema and 34 ema on the 15m chart (thanks to billblis for this from his cci method). best described with an eg. For me to enter long eu, i want to see uchf way away from any pivot levels, and for it to be falling, and having bearish momentum on the 5M and 15M charts, and also the UJ. I have found co-relation to be excellent. As an eg, last friday, I was looking for short UJ, I entered at break of daily pivot, eu was no where near any pivots, and neither was UJ. But the damn thing reversed on me with fury. I was really pissed off. Not because the thing went against me, but the fact that I had neglected to look at UChf hitting the weekly and mthly pivot. Both eu and uj reversed and there was a bit of dollar strength. Even though neither of them where really near any pivot levels. Eventually, uchf decided to break thru these wkly and mthly pivots, and at that time, eu shot up, and uj, decided to continue to where it was meant to go, to S1. Now, normally I will take profit on half my lots 10-13 pips, and the other half out at +5 if i see it retracing. I was all set to take out my entire trade at 15pips, but when I saw uchf breaking these pivots, eu going up, i held out for about 30pips. Enough for me to warrent not trading for the rest of the session.

You can apply this same concept to GJ, have UJ, GU and GChf up. GJ will follow UJ most of the time, unless there is realllllll GBP weakness. This weakness will be manifest in gu and gchf moving down. As you will see on the charts on Friday, when uchf broke those pivots, uj went down about 40 pips, but GJ went down about 100 pips.

Co-realation is good for entries, but also really good for determing exits in "in and out" trading. If a move on GJ has been started by GBP weakness, unless UJ shows signs of gowing down, GJ will retrace once GU starts to retrace - time go get out if you wish. You can add EJ if u wish to really see if the move is due to yen strenght or not.

Have a look at this next week, and you will be amazed. As scalpers, "in and out" traders, we are not looking for 20 enteries per day, or trades with 305- pip sl, but the absolute best entry, which has a multitude of factors stacking the odds in our favour (since nothing is 100% in fx). Getting 1-2 trades per
day is not uncommon (and yes it requires screen time).

That is my contribution. I apologise for the really long post.

Now, what I would like to get out of this thread is ppl sharing their settings for some of the commonly used indicators. It is my belief (after having spoken to some pro traders), that indicators like stochs, rsi, macd (basically 2 moving averages, CCI etc), all have optimised settings for pairs and time frames. eg. I know a lot off pll use 8,3,3 for stoch, but a guy who manages 5M for an individual told me to look at 10,3,6 on a 15M chart, it seems to smooth things out better and gives better entries. So I did, and voila, it did give better entries than 8,3,3. Another trader shared his system, that used RSI at 13, rather than the standard 14. Another trader was using ADX at 7 instead of the standard 13 or 14. I hope you get my gist. This is what I would like to get out of this thread.

Now, looking forward to all the sharinghttp://www.forexfactory.com/images/icons/icon12.gif

Regards,
K.

Wow. Love the post Kermut. You make a whole lot of really good points and I would reco people take the time to read it. I have a lot of charts setup on two twenty-one inch monitors to take advantage of the multiple TFs. I usually have all of the JPY crosses up simultaneously. You make a really good point. I mean a REALLY GOOD POINT! about checking out different crosses that affect your pairs. I find that the chf/jpy often pulls the gpy/jpy.

If I see a setup on any JPY cross during asian session. I will consider it as another indicator on the same chart!!!!!

Another wow is the 5sec and 30 sec charts. You are a better man than I lol.

I like 10-5-3 slow stoch. It smooths my lines and correlates with my rsi standard pretty well.

I posted a little earlier what all indi's I use. 5 Lines of ema. rsi stoch macd and fib
Pivots a must. and I draw in support and resistance.

Nice to have you aboard man. Lets see if we can get some good crossfire on indicators.

So to start off another week of scalping, while in deep mediation, I had the thought to explain EMAs. I use 5 lines of EMAs on my charts.

5 close -1 horizontal exp.
8 open exp
20 close exp
50 close exp
200 close exp

And here is the thing. We are scalping here. " ...No time for love Doctor Jones..."(temple of doom) We are not using a lagging system to average probabilities out over market swings. We need tight entries and whatever the hell you want to do after you get your stop break even.

I ofter use the 5&8 as an exit. if price is going with the trend, but reverses and closes counter trend outside the 8, thats all she wrote.

Other than those two. EMAs are moving S&R. Because I only use them for support/resistance, and never for the two line cross entry exit.
They are almost like moving fibs. You have 20 periods of 5 minutes or 15 minutes or whatever. The moving average is taking the 20 or 50 or 200 periods and averaging price action out of that length of time and giving you the average or halfway point or 50% Fib, for whatever TF you are using.

This is the only reason that they can be used effectively. This is also NOT to say that you cant use any others.

All EMAs are moving S&R and in a sense 50% fibs, Not from any high and low but from the last however many periods.

No matter where price is there is a EMA engaging it!!! Doesnt matter. The point is to get as many confluences in YOUR system as possible.


I also Use an important function of the 50 EMA as you might have seen on some of my examples. I use it for trend.
But not just above/below. I look for the ANGLE of the 50EMA. This is because I do not trade consolidation. Let me say it again. I DO NOT TRADE CONSOLIDATION!!

You want to? more power to ya. I just want to boost the probability rate of my trades by only trading trending markets.


That is all for now.
put it in the bank
Piitb

Here is a great shot. I am attaching two pics so you can see what it looks like on higher TFs. Perfect double bottom gives up tight entry.

I didnt take this trade seeing as how i wasnt awake at 4 in the morning.

Also there is cycle high stoch and macd pos-div on 15 min and 1 hr respectively.

As usually stoch and rsi on the 5 min get the business done.

I think it is funny how everyone is saying things like " this does not constitute advice. You should trade within your capital risk of disposable income." blah blah blah. As if someone on this forum is going to sue you cause they are too dumb to trade. Wait maybe they are

ps None of this is to be interpreted as advice. Everyone should trade with their own technical analysis within their disposable capital risk means.

Market flow is still down on the GJ. I am still looking to enter short. 62Fib on 1 hr chart forming and evening star!? (that is chess notation for a " dubious " move) Hasnt closed second candle yet so it could go any which way. LOL

EJ is in same ballpark. If i decide to take a trade i will post it as it unfolds. still sitting the fence.

That Fib reference is for the EJ sorry.