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Scalping Technique Made Easy

  • Poll

  • What do you think of the HAS method
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  • #1
  • First Post: Edited 8:29pm Mar 28, 2007 8:12pm | Edited 8:29pm
As promised I am attaching some images of the technique to capture PIPS O' plenty after a move has been identified. This method is similar to the other method outlined on the other thread in this HAS forum but better and mechanical.

First start with the longest TF you desire to trade with. You could actually start with the monthly Tf and use that as a reference to scalp some huge moves. I would recommend that you start with the 4Hr Tf as it is a nice compromise for stability and enough PIPS that can be withdrawn from your ATM.

So start with the 4hr TF. In this example we are looking to short (red candles). Confirm that this currency is trending. By now you should know how to identify a trend e.g. all one color on the 4hr Tf row. If the higher TF's like the daily, weekly and monthly are also the same color you are in a nice long lasting trend that affords a measure of less risk.

Now switch to one lower TF which in this example would be the 1hr. Look for a colored bar(s) that is opposite of the color of the primary trend. I switched down to the 1hr and see no blue "4TF HAS BAR" candles so I switch down again to the 30M. I see one area of blue so I take notice and wait patiently for the next bar that closes red.

After identifying the first closed red candle (30M) I enter short on the open of the next 30M candle. If I had not found any blue candles on the 30M I would have switched down to the 15M and looked for a blue candles.

Keep in mind that this will work on any combination of TF's. The method is sound. The higher TF's produce more PIPS. The lower TF's produce less pips and last less time. How you want to exit with profit is your decision. I don't want to go into hours and dissertation on exits. There endless.....

Please report in how you are doing with this. If you want to donate any money my favorite charity is one that involves animals.

Attached Images
  • #2
  • Mar 28, 2007 9:05pm Mar 28, 2007 9:05pm
I like the way your system looks. You may want to add one more option to your poll.."It looks good and I plan on testing it".

I am going to play with it and watch the results.

Don't forget to attach the indicators on this thread

Thanks and good luck
  • #3
  • Mar 28, 2007 9:11pm Mar 28, 2007 9:11pm
Quoting WHTenn
I like the way your system looks. You may want to add one more option to your poll.."It looks good and I plan on testing it".

I am going to play with it and watch the results.

Don't forget to attach the indicators on this thread

Thanks and good luck
The indicators are posted on the first thread in the forum.
  • #4
  • Mar 28, 2007 9:40pm Mar 28, 2007 9:40pm
Steinirz thanks for posting this method. I am practicing pretty similar method but on much smaller timeframes. 30 minutes to detect trend and 30 seconds for entry. I use Linuxtroll rainbow and candels as my only two indicators. It is much harder than it looks on surface. 1 month practice for me every day and still overall I am in negative. Problem I see, timeframes are different, for example on 1 hour charts I see movements that I never see on 30 second charts, so you really have to know each timeframe movement and do not mix them in your mind. And if you mix your knowlage one timeframe with another then you are going to make mistake after mistake. I know there is no easy road in Forex, at least for me, besides I really like scalping.
Like Linuxtroll says, you have to use a lot of screen time with this approach. For me for example, 1 month it not enough.
I am very curious did you use this method with succsess, or just with ocasioanal succses?
See right now, I can be positive for 4 days stright, but it dose not mean much becase after 10 days I am negative overall.
"Every battle is won before it is ever fought." - Sun-tzu, The Art of War.
  • #5
  • Edited 10:11pm Mar 28, 2007 9:55pm | Edited 10:11pm
Quoting Andy12
Steinirz thanks for posting this method. I am practicing pretty similar method but on much smaller timeframes. 30 minutes to detect trend and 30 seconds for entry. I use Linuxtroll rainbow and candels as my only two indicators. It is much harder than it looks on surface. 1 month practice for me every day and still overall I am in negative. Problem I see, timeframes are different, for example on 1 hour charts I see movements that I never see on 30 second charts, so you really have to know each timeframe movement and do not mix them in your mind. And if you mix your knowlage one timeframe with another then you are going to make mistake after mistake. I know there is no easy road in Forex, at least for me, besides I really like scalping.
Like Linuxtroll says, you have to use a lot of screen time with this approach. For me for example, 1 month it not enough.
I am very curious did you use this method with succsess, or just with ocasioanal succses?
See right now, I can be positive for 4 days stright, but it dose not mean much becase after 10 days I am negative overall.
I am not a true believer in scalping personally. I have heard a lot of traders complain that scalping is hard to master and show consistent profits from since you don't benefit from longer term TF's. If you make a decision to limit your upside potential then you need to have extremely high win rates to overcome the losses. I am sure this can be accomplished but not for the novice.

A great book to read is entitled "Market Wizards". One common thread amoung the most successful traders is that they let their winning trades run. If you think about that I am sure intuitively you will agree that limiting ones upside goes against the grain.

This method is here for the die hards that either already know how to scalp successfuly or people that will try it and see how it works for them. I recommend if you do try this method which is solid by all pratical measures, I would suggest trying longer TF's and stay away from the 5M - 15M Tf's.
  • #6
  • Mar 28, 2007 10:09pm Mar 28, 2007 10:09pm
I like the way it sounds.
  • #7
  • Edited 10:30pm Mar 28, 2007 10:16pm | Edited 10:30pm
I am totally agree that scalping is not easy at all. But shorter timefame gives you advantage of really see how you doing in your trading. And you can practice 10 or even more times a day, anlike longtime frame trading.
In my opinion, longer timeframe much easier to fool yourself that you are doing good but in reality may be not. For example, I was beliver in long timeframes untill I come across method (using daily charts) that I backtestes inside and out on 3 years data (my backtest was on 15 and 30 minutes timeframe), but when I start trading live I lost money just because currency GBP/USD stop trending the way it used to for whatever reason. On shorter timeframe you do not have this problem. Shorter timeframes you will see if something went wrong right away the very same day, not after many months consistently losing money when following system in longer timeframe.
But overall, scalping is really hard to master and too many people give up. I still belive it can work, I do not know how many months I have to practice to get a good results though.


Quoting steinitz
I am not a true believer in scalping personally. I have heard a lot of traders complain that scalping is hard to master and show consistent profits from since you don't benefit from longer term TF's. If you make a decision to limit your upside potential then you need to have extremely high win rate to overcome the losses. I am sure this can be accomplished but not for the novice.

A great book to read is entitled "Market Wizards". One common thread amoung the most successful traders is that they let their winning trades run. If you think about that I am sure intuitively you will agree that limiting ones upside goes against the grain.

This method is here for the die hards that either know how to scalp successfuly or people that will try it and see how it works for them. I recommend if you do try this method which is solid in a logical sense I would say try the longer TF's and stay away from the 5M - 15M Tf's.
"Every battle is won before it is ever fought." - Sun-tzu, The Art of War.
  • #8
  • Mar 28, 2007 10:42pm Mar 28, 2007 10:42pm
Quoting Andy12
I am totally agree that scalping is not easy at all. But shorter timefame gives you advantage of really see how you doing in your trading. And you can practice 10 or even more times a day, anlike longtime frame trading.
In my opinion, longer timeframe much easier to fool yourself that you are doing good but in reality may be not. For example, I was beliver in long timeframes untill I come across method (using daily charts) that I backtestes inside and out on 3 years data (my backtest was on 15 and 30 minutes timeframe), but when I start trading live I lost money just because currency GBP/USD stop trending the way it used to for whatever reason. On shorter timeframe you do not have this problem. Shorter timeframes you will see if something went wrong right away the very same day, not after many months consistently losing money when following system in longer timeframe.
But overall, scalping is really hard to master and too many people give up. I still belive it can work, I do not know how many months I have to practice to get a good results though.
I was referring to TF's of 30M to 4Hrs. I wouldn't want to stay in weeks or months. I would lose interest or just get bored waiting. You'll find a lot of traders like the 4hr chart. Yes shorter TF's allow to close up shop early and avoid market volatility with news etc.

I just say be careful and set TP's that are greater then SL's or at least equal and have a very good set-up pattern that repeats in any market condition. Furthermore I have never seen an indicator do such a great job of displaying a trend and it's strength.

I thought DMI was pretty good.
  • #9
  • Mar 28, 2007 11:03pm Mar 28, 2007 11:03pm
Thanks for your advises. By the way, I know it is Off Topic of your tread but this is indicator I use. It is Linuxtroll rainbow.
Quoting steinitz
I was referring to TF's of 30M to 4Hrs. I wouldn't want to stay in weeks or months. I would lose interest or just get bored waiting. You'll find a lot of traders like the 4hr chart. Yes shorter TF's allow to close up shop early and avoid market volatility with news etc.

I just say be careful and set TP's that are greater then SL's or at least equal and have a very good set-up pattern that repeats in any market condition. Furthermore I have never seen an indicator do such a great job of displaying a trend and it's strength.

I thought DMI was pretty good.
Attached Image
"Every battle is won before it is ever fought." - Sun-tzu, The Art of War.
  • #10
  • Mar 28, 2007 11:29pm Mar 28, 2007 11:29pm
Quoting Andy12
Thanks for your advises. By the way, I know it is Off Topic of your tread but this is indicator I use. It is Linuxtroll rainbow.
Interesting.. how do you intepret the signal?
  • #11
  • Mar 29, 2007 12:21am Mar 29, 2007 12:21am
Quoting steinitz
The indicators are posted on the first thread in the forum.
If they are, they're well hidden, I can't find them. To save a lot of confusion and frustration, could you be a little more specific, or better still, just post them!

Pip2
  • #12
  • Mar 29, 2007 12:32am Mar 29, 2007 12:32am
Quoting Snobol1
If they are, they're well hidden, I can't find them. To save a lot of confusion and frustration, could you be a little more specific, or better still, just post them!

Pip2
Please go to this link and see posts 6 & 7 for the three indicators and my template.

http://www.forexfactory.com/showthread.php?t=21899
  • #13
  • Mar 29, 2007 1:15am Mar 29, 2007 1:15am
Stein,
Always have passion, that's really helpful, your life must be colorful.

I would say short term instead of scalping, I believe we should define exact entry and exit and start experimenting and produce statistic.

What I like about HAS that it gives colors, I know it is similar to certain MA (in fact that HAS parameters are MA parameters) and that MA can be designed to be colorful as well, but HAS gives you more visual because it is Heiken Ashi, so it is already through 3 filters (HA,MA 2 period & MA 6 period), combined with other timeframes give you additional confirmations.

It's time for testing in the field aka forward test.

But anyone can first be confidence when you look at historical or backtest, but make sure you know about MTF hindsight.
  • #14
  • Mar 29, 2007 3:25am Mar 29, 2007 3:25am
Hi Steinitz

I picked this indicator up somewhere in the forums and could be used to further compliment your system and enhance entry. also color bars on the TF's that include MACD etc..
Attached File(s)
File Type: ex4 _Signal_Bars_v1.ex4   36 KB | 2,183 downloads
  • #15
  • Mar 29, 2007 7:29am Mar 29, 2007 7:29am
Quoting mason
Stein,
Always have passion, that's really helpful, your life must be colorful.

I would say short term instead of scalping, I believe we should define exact entry and exit and start experimenting and produce statistic.

What I like about HAS that it gives colors, I know it is similar to certain MA (in fact that HAS parameters are MA parameters) and that MA can be designed to be colorful as well, but HAS gives you more visual because it is Heiken Ashi, so it is already through 3 filters (HA,MA 2 period & MA 6 period), combined with other timeframes give you additional confirmations.

It's time for testing in the field aka forward test.

But anyone can first be confidence when you look at historical or backtest, but make sure you know about MTF hindsight.
I agree. I have read somewhere on these threads that nobody has yet designed an EA that produces consistent profits. If there is one I would love to see it's results.

Also I will go on the record here to say that I don't depend on income from any trading. I have multiple income sources that do well. I have always come out to say that I have struggled with Forex from the beginning when I started this thread.

Having saying that it doesn't mean that I don't trust this method it merely means that I can't devote the time to this market. I am a perfectionist and if I can't do something 100% I will stay away. One reason for the poll is to see how people are doing that possibly depend on this for income.

My motivation for this is a two way street. I put this out for all to criticize and at the conclusion it is likely we will all benefit from this. I had nothing before coming to FF and at this point I feel confident that I could take away from FF the knowledge and tools to stay home and make money if I had nothing else in my life going on.

I actually see myself doing that near retirement age. So don't be fooled into thinking I am just out here for my ego. I am not. I see only good things from this indicator and you and I are partners to see this through.
  • #16
  • Apr 3, 2007 6:57am Apr 3, 2007 6:57am
Hello everyone. First let me comment on Andy's #7 post. I agree for the most part about using the shorter tf's, but the longer tf's must be viewed
for info they can provide. I have never given scalping a try, but see it as
being difficult to master without much pratice.

For the HAS METHOD I start on the 15M & when I get the same signal on the
30M & 1Hr I'm in. Next I start following what the 5M is saying & as long as
the 5M, 15M, 30M & 1Hr stay on the same page (giving the same signal) I stay with the trade. I have found the more tf's that are giving the same
signal, the stronger the trade will usually be. For an example check the
GBP/USD starting on the 11:00 gmt candle & you will see that the 15M, 30M
& the 1Hr are all giving the same signal. Now they didn't all agree in the beginning, but they want because the momentum has to build for
the other tf's to pick up on it. I entered this trade on the 11:30 candle so I
have captured about 50% of this move for a gain of about 30 pips.

Is this method the HOLY GRAIL? NO, but it is a very tradeable method once
you understand what to look for. So far for me 20 trades with 1 loss, but
only 5 of those have been live. The exits for this method is something
each trader needs to figure out for their trading style. You could write
page after page on exits & never run out of theories to discuss.

Summary: I use HAS along with 4TF HAS & 4TF HAS2 & I have added RSI
@21 & thats it. Thanks to Steinitz for sharing this method & to all those
that contribute in so way.


" The Holy Grail Is Not The Method Traded, But The Trader "


AceTrader
  • #17
  • Apr 4, 2007 10:43pm Apr 4, 2007 10:43pm
I'm just wondering for those people that voted that the method was not impressive to please step forward and give us a reason for your vote and if you are making money now in the mnarket and what method you prefer?

http://www.forexfactory.com/images/polls/bar4-l.gifhttp://www.forexfactory.com/images/polls/bar4.gifhttp://www.forexfactory.com/images/polls/bar4-r.gif
accrete, Jarret, jarroo, JokersWild, Musanto, Nybegynner, ra300z, Tragapips

Note: JokersWild is not relevent.......
  • #18
  • Apr 4, 2007 10:48pm Apr 4, 2007 10:48pm
For these people that voted that don't understand I would like to hear what it is you don't get? I have given step by step instructions in a word doc and plenty of examples. I wonder if these people want a really simple, no thinking method that could be learned in 10 minutes. I'm just curious. Please step forward and ask some questions.

If I don't answer them somebody here will. Also I would like more votes. I get a lot of PM's (used to. turned off now) of how much they like this method.

http://www.forexfactory.com/images/polls/bar5-l.gifhttp://www.forexfactory.com/images/polls/bar5.gifhttp://www.forexfactory.com/images/polls/bar5-r.gif
brankota, dem_z, Gwan, kptMisiu, Rosco_P, rsl1962, Tulkas, Ultimate4X, USD Hunter
  • #19
  • Apr 5, 2007 11:17am Apr 5, 2007 11:17am
Traders:

Here is what I have so far that I have closed out since last week of trading. The only reason I have one trade with a loss is because I closed all my trades out and didn't see that I had one trade with a loss. If I had seen that I would have kept it floating until it profited or the colors told me to close.

I want to reiterate something here also mentioned by Ace on an earlier post. I am unhappy for two reasons:

1. I am showing the entire trading community a trading method that is so simple and clear in design that dwarfs all other systems on the market. That is a bold statement to make. I will back this up with my recent statement. Yet I don't see the contribution for EA's and simple alerts.

2. I am unhappy with "Merlins" unwillingness to give me back my moderator status from a petty previous issue. I need that status to arrange my threads.

At this point you might be wondering if I really care since I do have a method that can make me wealthier beyond expectations. Here is the answer. I still believe there is some room for improvement that takes multiple minds to get this done.

I could leave like some other moderators and start a website and charge. I am not planning on doing that. I could ask you traders who believe this is a great thread to follow me elsewhere I am not going to do that.

I just want respect from this site and regain my moderator status. Maybe I'll never get it back and this post will further solidify the unresolve. I ask each and everyone of you (if you like this thread) to email "Merlin" and tell him that you feel Steinitz should have his moderator status back to organize the thread.

Steinitz
Attached Image
  • #20
  • Apr 5, 2007 11:27am Apr 5, 2007 11:27am
I'm not taking the time to go back and peruse a myriad of various posts, but instead asking if you could you expand a bit on the reason Merlin took away your moderator status in the first place?
"I know how hard it is for you to put food on your family." George W. Bush
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