1M 20+ pips scalp [with discretional 30M foundation]

Hi there,
I would like to share my trading idea. I'm still not concerned as to place where should I post, however one of reasons why I post is some evaluation and advices from you guys, therefore I choose Trading Systems.

Time:
I trade it between 8:00 and 10:30 GMT+1 [European time], however I use exactly same 1M rules when trading on news release.


Preparation for trading:
Before I open my 1M chart, I watch first M30 to see what trend is, and was there any retracement shortly before session begins, or should I expect one soon. E.g. if there was move down on uptrend during asian session, I decide how far up price should move up to convince me that it's back on it's way up.

than daily to see if price is on trend or range, is it top or bottom of channel, or near some trend line, just to confirm what I saw on M30.

Example of such an analysis is here on my blog:
fx-sniper


When I prepare for news trading, apart of some current S/R levels I do research on historical charts related to previous release. What I search for is
-did release moved price any direction?
-was there spike in the begining?
-was spike shadowed back?
-was there move back to prerelease value?
-did price turned back later after release [30-60 minutes] did it eventually returned to prerelease values?


When research is done I use mechanical part of a system.

On my 1M charts you can see:
BB 18
StochRSI
HeikenAshi Smoothed [0,1,3,2]
GREEN AND RED LINE for top and bottom of a price range between 23:01 [prev day] and 07:00
grey box marking top and bottom between 6 and 8 am GMT+1

Note that my chart is timed in GMT+2 what may be a bit confusing - please ignore it


Entry short:
picture shows the best.
First and foremost, I wait for price to break below recent range, or set new low.
Than I wait for it to retrace to upper band coordinated with StochRSI above 99.

When this happens my entry level is the lowest bottom of one of recent 2-3 green candles with green HAS. this is a bit discretional where this level should be, but it shouldn't be too close to current price. hopefully picture shows the best.

SL is 1 pip above recent top or bottom [usually around 8-12 pips], however I set not higher than 15 pips on EU EJ and GU, and not more than 28 on GJ.

TP I take half around 20 pips [30 on GJ] and wait with the rest [usually watch tops and bottoms, some important levels etc].

On attached picture there is another trade - long GU marked. I don't discuss it here as I did not follow exact entry rules, however I did it as I expect GU bounce off red line as one scenario [you can read it in my blog], aditionally similar PA on EU was kinda confirmation for trade long.

PS. Please feel free to ask, as it may sound a bit complicated, I will post tpl and indicators later today.

Here's detailed picture and indicators:

EU: there is channel broken up on 30M chart, great for long, especially above 1.4450. important resistance [bottom of Asian channel] @1.44 if price retrace to this area, I would wait and eventually trade short below this level.[If traded long - there is plenty of room up on daily chart]

EJ: yesterday struggled with new highs, however not potential seller yet. Strong resistance above 133.50, so beware if you trade long. Whatever direction of trade you should be careful. Reversal on daily [middle of leg up in flat channel] is possible.

GU: This pair is on a nice buy setup but 1.6240 may be limit for what it may do today, however above that level there is plenty of room to rise.

GJ: has good potential to fall 300 pips within two days and even more within two weeks. for buy signals stick with either GU or EJ.


If you would like to comment on this particular analysis, you can do it either here or on my blog

Came a bit late, so here's short version:

EU: further shorts possible [but not trade if price trade higher or retracement [30M]

EJ: possible rise after correction.

GU: short below 1.5936

GJ: rise especially above 148.20


There is update for yesterday [2010-01-06] trading on my blog.
http://fx-sniper.blogspot.com/
Not posted here as I woke too late.

well, price turned back on EU and GU, so I will think of entering long soon, possibly on neartest setup long [If very clear setup formed]

Now I'm going back to think of EU short [cause UJ looks a bit bullish, and EUR crosses looks like out of momentum], but first I need to see reversal pattern on both EU and GU. Will describe it later.

*Actually none of those trades was taken off clear and nice setup.

9:17 UJ buy @92.75
9:37 EJ buy @133.29
9:37 EU buy @1.4382
10:30 1/2EU sell @1.4371

today started with spike on JPY crosses. Market was quite messy, however on divergence between JPY pairs and USD pairs I decided to long UJ. Big mistake was to take first dip after spike, usually second is deeper, and that's what happened this time. I should prevent myself from trading at all so early after spike, but I didn't and loss on UJ was a price of it.

What was surprising, EU after plunge started to regain it's position very quickly, therefore I decided to enter this move [what I did announced on FF thread earlier]. In spite of lack of proper setup I opened EJ position as well as UJ was looking for me as it was going to appreciate, so I could make sure I won't miss the move.
As you can see on a chart [posted on my blog]at the moment of taking that second trade GU was forming higher bottom, so when I saw deep plunge on GU I decided to close EU position. I kept EJ trade open and managed to close half at +20 pips profit, accordingly to trading method, however on second half I managed to save just 6 pips.

Last trade - short EU I opened when waiting for reversal setup to unwind what didn't happened. I closed trade with + 6 and +2 pips

EU: 1.4483 is an important high of recent range, so price as it is now - above this level gives nice possibility of trading long.

GU: not as clear as EU, I would wait for this pair to break daily low or high first.

EJ: here nice upmove too. Expect rises with resistance area @ 134.50

GJ: same as GU, needs proper break of today hi/low first. 150.70 and 146.12 are nearest resistance levels.

I shorted EU, as I expect some retracement on this pair. 1.4450 is where I'm heading [with standard 50% at +20]