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Attachments: Chronicles of the Price Action Scalpers
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Chronicles of the Price Action Scalpers

  • #41
  • Jul 21, 2008 12:55pm Jul 21, 2008 12:55pm
I like to scalp on M1 & M5 charts, I use 25-50 MA and TL and pivot points.

any1 else do this? just interested
  • #42
  • Jul 21, 2008 9:29pm Jul 21, 2008 9:29pm
Acumen-

Your scalping style on psych levels is intriguing...do you trade "to" the psych level, through them to the next one, fade them? I couldn't tell from the chart you posted, but I trade mainly the euro and use those levels as support/resistance levels so I know their power. I like to be able to scalp them too.

For my contribution on scalping, pull up a EUR/USD daily chart, put in obvious S/R and trendlines, then do the same on the four hour and one hour. Use trendline breaks and MACD divergence on 1 min or 5 min charts to plot direction and trade to and against the higher TF S/R. Trade only on the London open, NY open/overlap, and NY close. It is more likely to trend then and react off S/R.
  • #43
  • Edited 9:49pm Jul 21, 2008 9:37pm | Edited 9:49pm
I use these channels allot when trading.

Here is an example of a trade using them.

All I had for trend was the bottom two valleys. I connected them to get the trend angle and then put a parrellel line on the first peak.

Then waited for this line to get hit and put in a short.

Another text book entry. The market hesitated at 3 pips so I got out. Good thing if you look at the trade this is when it decided to break the channel.

So if I had held out any longer I would have lost.

Also, if after i put this short in, the price rose above the equidistant channel I would have gotten out and probably at -2-3 pips.

Mike

P.S. Im sure you can spot another easy channel break just before this channel that would have been an easy 5 pips.
Attached Image (click to enlarge)
Click to Enlarge Name: Equidistant (1157 x 726).jpg Size: 131 KB
  • #44
  • Jul 22, 2008 3:15am Jul 22, 2008 3:15am
Quoting zu si fu
Hi Richard,

Well said.Thats the reason i am keen to learn how to scalp.Will you mind to share your strategy?If you dont mind,i will PM you.

Thanks in advance.
Zu
FxRichard is also a Cyrox Simple Scalper supreme...
  • #45
  • Jul 22, 2008 8:12am Jul 22, 2008 8:12am
Quoting FlashCall
FxRichard is also a Cyrox Simple Scalper supreme...
Hi Flashcall,

Ah,thanks.And how long have you been using rainbow?And recommedation?

Zu
  • #46
  • Jul 22, 2008 11:43am Jul 22, 2008 11:43am
Quoting zu si fu
Hi Flashcall,

Ah,thanks.And how long have you been using rainbow?And recommedation?

Zu
Most rainbow users will recomend one thing above all.

SCREEN TIME!

Time spent observing Price Action.

This applies to any PA trading. Screen Time is what programs your mind with the way the market moves and lets your subconscious intuition guide you correctly.

Beyond that I don't think you will get to much recommendation.

Mike


.
  • #47
  • Edited 12:46pm Jul 22, 2008 12:24pm | Edited 12:46pm
Quoting Pip Ventures
Most rainbow users will recomend one thing above all.

SCREEN TIME!

Time spent observing Price Action.

This applies to any PA trading. Screen Time is what programs your mind with the way the market moves and lets your subconscious intuition guide you correctly.

Beyond that I don't think you will get to much recommendation.

Mike


.
One cannot tell you exactly how to trade with the rainbow, you have to get a feel for it and learn the patterns of the rainbow in conjunction with the way price moves with it. How fast price is moving along with many other factors help determine an entry/exit with the rainbow. With screentime it becomes very easy. Some will pick it up in a few weeks while others may quit before they fully understand it.
  • #48
  • Edited 3:25pm Jul 22, 2008 1:52pm | Edited 3:25pm
I have been slightly experimenting with this rainbow.

Here is a pic for those wondering what the rainbow is.
(this is a 1 min. rainbow. This has been used by many but others are using 10 sec. or less TF's)

Again, the rules are go long when the market is going up and go short when the market is going down. How do you know... SCREEN TIME.

One plain and one with trends (though Cyrox users dont use them)

Update: Ive received info that the color is important. So I have posted a color rainbow and template.

Oh, Template is at bottom also
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Cyrox Rainbow (1156 x 776).jpg Size: 227 KB
Click to Enlarge Name: Cyrox with Trends (1151 x 769).jpg Size: 262 KB
Click to Enlarge Name: Cyrox Rainbow with Color (1152 x 772).jpg Size: 164 KB
Attached File(s)
File Type: tpl CryoxMMA.tpl   8 KB | 901 downloads
File Type: tpl Cyrox Color Rainbow.tpl   5 KB | 990 downloads
  • #49
  • Jul 22, 2008 5:59pm Jul 22, 2008 5:59pm
Linuxtroll and other rainbow scalpers and scalpers in general consistently preach a few important facts which stand true for any scalping and I am sure Richard and other scalpers will concur...

1-pick a time to trade such a the last 2 hours of London as an example and learn or memorize the price action in that time period. Wait for the same EXACT setup and take your trades ONLY then.

2-pick 1 pair and learn it's characteristics especially in the time period you choose to trade!!! Most like the eu or uj because of their volume, liquidity and smaller spreads. Which is important because we are looking to make 3-20 pips per trade, in and out, minimum exposure to the market.

3-use a broker that allows scalping like mbt, hotspot and that does not manipulate your entries and exits but a non dealing desk. Onada has a nice tight spread on the eu so it is a favorite.

4-look for and trade small breakouts from s & r areas that form which is what PV has been demonstrating with his trendlines he has drawn on his 1 min. charts. That is one effective way. You can easily do the same thing on the 1 sec charts. You just need to recognize the s&r areas that form and get ready to enter on the break without having to physically draw the lines.

5-many also enter trades once the rainbow flips or rolls over and changes direction and then they wait for FIRST price pullback into the body of the rainbow and take the trade in the direction of the flip.

6-get down to the 1sec charts because what is happening on the 1min has already happened on the 1sec. chart. You can easily download ninjatrader(which is free) and set up a rainbow chart on a 1 sec chart.

7-have your order box open and ready to execute a trade with your finger on the button so to speak.

8-there are many others trading the linux rainbow, if you go to his cyrox forum you can view daily journals of many rainbow traders and their entries and exits all free.

None of these points are new but they are extremely important to succeed while scalping. I hope this helps a bit...
Enter Signature
  • #50
  • Edited 11:30pm Jul 22, 2008 9:22pm | Edited 11:30pm
Quoting jamesr24
Linuxtroll and other rainbow scalpers and scalpers in general consistently preach a few important facts which stand true for any scalping and I am sure Richard and other scalpers will concur...

1-pick a time to trade such a the last 2 hours of London as an example and learn or memorize the price action in that time period. Wait for the same EXACT setup and take your trades ONLY then.

2-pick 1 pair and learn it's characteristics especially in the time period you choose to trade!!! Most like the eu or uj because of their volume, liquidity and smaller spreads. Which is important because we are looking to make 3-20 pips per trade, in and out, minimum exposure to the market.

3-use a broker that allows scalping like mbt, hotspot and that does not manipulate your entries and exits but a non dealing desk. Onada has a nice tight spread on the eu so it is a favorite.

4-look for and trade small breakouts from s & r areas that form which is what PV has been demonstrating with his trendlines he has drawn on his 1 min. charts. That is one effective way. You can easily do the same thing on the 1 sec charts. You just need to recognize the s&r areas that form and get ready to enter on the break without having to physically draw the lines.

5-many also enter trades once the rainbow flips or rolls over and changes direction and then they wait for FIRST price pullback into the body of the rainbow and take the trade in the direction of the flip.

6-get down to the 1sec charts because what is happening on the 1min has already happened on the 1sec. chart. You can easily download ninjatrader(which is free) and set up a rainbow chart on a 1 sec chart.

7-have your order box open and ready to execute a trade with your finger on the button so to speak.

8-there are many others trading the linux rainbow, if you go to his cyrox forum you can view daily journals of many rainbow traders and their entries and exits all free.

None of these points are new but they are extremely important to succeed while scalping. I hope this helps a bit...
James,

Thank you. That was very thorough.

Rainbow is one of the most popular form of scalping with Price Action.

It's one that all Price Action scalpers should consider using.

I like how youve added Trend lines. Many do not use the RB with them. But they would be a good addition and couldnt hurt.

I am still considering Oanda. I just dont like the 50:1.


Mike


.

Mike
  • #51
  • Jul 22, 2008 9:49pm Jul 22, 2008 9:49pm
Quoting Pip Ventures
I have been slightly experimenting with this rainbow.

Here is a pic for those wondering what the rainbow is.
(this is a 1 min. rainbow. This has been used by many but others are using 10 sec. or less TF's)

Again, the rules are go long when the market is going up and go short when the market is going down. How do you know... SCREEN TIME.

One plain and one with trends (though Cyrox users dont use them)

Update: Ive received info that the color is important. So I have posted a color rainbow and template.

Oh, Template is at bottom also
Purple rainbow as shown here is not the same and not recommended. Rainbow is only a portion to successful scalping, it does take a lot of screentime (I guesstimate I have about 700 hours), once you learn your currency pair with the rainbow it's a walk in the park, you can easily achieve 90% + hitrate, throw big lots at it with a form of Money Management that most on FF would think is insane you can easily make big $....
  • #52
  • Jul 24, 2008 4:39pm Jul 24, 2008 4:39pm
Quoting zu si fu
Hi Flashcall,

Ah,thanks.And how long have you been using rainbow?And recommedation?

Zu
I've been using it since Oct 2007; And it's getting better everyday...
  • #53
  • Jul 24, 2008 4:47pm Jul 24, 2008 4:47pm
Quoting Pip Ventures
I have been slightly experimenting with this rainbow.

Here is a pic for those wondering what the rainbow is.
(this is a 1 min. rainbow. This has been used by many but others are using 10 sec. or less TF's)

Again, the rules are go long when the market is going up and go short when the market is going down. How do you know... SCREEN TIME.

One plain and one with trends (though Cyrox users dont use them)

Update: Ive received info that the color is important. So I have posted a color rainbow and template.

Oh, Template is at bottom also
Yes many 'old-school' Cyrox Scalpers used monochrome rainbow...it was easier for 'newbies' to see the patterns...some still use the monochrome...I liked it also...

However these day Linuxtroll only recommend Full Rainbow version of the CyroxMMA; Those colors are important (but not static) for entries, exits and knowing the right market-conditions...

Only scalp using 1 sec TF...we want to put in biglots jump in and out and be done...higher TF such as 30 sec, 1 min, 5 min you maybe catch more pips, but have larger drawdowns (and risk) also, so big-lots scalping is not applicable when using those higher TF's.
  • #54
  • Jul 24, 2008 11:32pm Jul 24, 2008 11:32pm
Another chart. This time simple line chart. Works well when drawing s&r and Trends .
Attached Image (click to enlarge)
Click to Enlarge Name: Oanda Channel break (1123 x 719).jpg Size: 183 KB
  • #55
  • Jul 25, 2008 1:11am Jul 25, 2008 1:11am
PA behavior is great.
Attached Image (click to enlarge)
Click to Enlarge Name: Support (1150 x 719).jpg Size: 210 KB
  • #56
  • Edited 11:54am Jul 25, 2008 10:55am | Edited 11:54am
These last three charts are great examples showing that PA and its following of S&R and Trends is not limited to 4hr and above as some preach.

Right down to 10 sec charts, you can clearly see the S&R, Trends, Channels, and the behavior that surrounds them.
Attached Image (click to enlarge)
Click to Enlarge Name: 102 (1150 x 633).jpg Size: 229 KB
  • #57
  • Jul 25, 2008 1:39pm Jul 25, 2008 1:39pm
Quoting plasmapants
Would be great if contributors could share scalping price patterns they watch out for.

Could put together an album.

Heres one to get started.
Hope youve enjoyed the sharing!
  • #58
  • Jul 26, 2008 8:13pm Jul 26, 2008 8:13pm
Here is a spreadsheet showing a years worth of trading. (20 days/month)

This spread sheet allows you to enter and change the following:

Starting Capital
Account Increase / day
Percentage withheld daily (personal paycheck)
total daily profit

Default settings are as follows:

10,000 starting capital
2% / day (equivelant to 7 pips / day using 1.5 risk / trade 50:1 lev)
30% daily profits withdrawn

Its a simple one

Have fun.

Mike
Attached File(s)
File Type: xls Forex Income.xls   165 KB | 1,109 downloads
  • #59
  • Jul 27, 2008 1:31pm Jul 27, 2008 1:31pm
This is a great thread... keep up the excellent postings.

Scalpers Rule!
"To Be A Successful Forex Trader, You Need A Successful Forex Mentor."
  • #60
  • Jul 27, 2008 11:12pm Jul 27, 2008 11:12pm
Quoting CTGUY
This is a great thread... keep up the excellent postings.

Scalpers Rule!
Thanks CTGUY!

Hey, I was wondering.

I saw on one of your posts that you Scalp and Position trade.

Is there a reason you still position trade when you are profitable with scalping.

You saw how I posted on another thread and this one that putting all your effort into scalping would be more profitable in the long run. (mathmatically lol)

So have you found yourself to be winning less trades when scalping then when position trading?

Or does it just have to do with not having enough time to scalp?

Just wondering.

Thanks again!

Happy Trading.


Mike Lewthwaite
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