Sicko-Scalp-Machine

Hi all.

Sicko-Scalp-Machine is a trading system constructed of parameters from different Scalping Systems. If you read these interesting instructions and manuals at "http://forex-strategies-revealed.com/scalping-systems" you could follow here at this thread.

Basics:
http://www.babypips.com/school/
http://forex-strategies-revealed.com/scalping-systems (in particular: the first, #5, #6, #8, #12, #14, #14A).

Indicators: CCI(20), RSI(8), BB (50/2) / (50/3) / (50/4), MACD (12, 26,9), ADX(14), EMA3, 21, 55

Alignment: Pivotals, Fibonacci

Preferred Currency: EUR/USD

Preferred Time Frame: M1, (M5)

Kooky MM/RM/DM & SL (Money-, Risk-, Deficit-Management & Stop Loss)

---
Trade Examples:
p.2, #18; #20 (Label); #21; p.3, #36; How scalping? Forex Scalping, Step1-Step7, p.3, #37 et seq.; Scalping with Multiple Time Frame Analyse, Step1-Step6, p.4, #50 et seq.;

Clarification:
p.5, #65 (from Medici);

Indicators:
Using Fibonacci Levels for Scalping the Forex Market, p.1, #140 ;CCI Indicator explained: p.4, #63; Pivot Point Trading Tutorial, p.5, #75;

Articles:
Forex Scalping, p.1, #9; How To Scalp Fundamentally, p.1, #10; Extensive Guide on How to Scalp Forex, p.1, #11; Two differrent scalping strategies, two differen timings, p.1, #12; p.1, Pattern Scalping Strategy, #13; Forerx Scalping - Criticism and Disadvantages, p.1 #15; Forex Scalping Guide - Conclusions, p.2, #16; The Forex Scalping System Revealed, p.5, #67; Candle Stick Tutorial, p.5, #71; #72; Why High Probability Forex Trading Strategies Are For Suckers!, p.7, #98;

---
Other Scalping concepts at FF, e.g.
http://www.forexfactory.com/showthread.php?t=214628
http://www.forexfactory.com/showthread.php?t=279970
http://www.forexfactory.com/showthread.php?t=120606
---

Kindest regards
FXcube

---
Demo Account:
Deposit: 50'000.-$, Term: 2011 March 02 -31, Target: 1% a Day (500.-$ a Day) - Closed at 2011 March 10.
Result from 2011 March 10, Equity: 100'761.09 $, Profit: +50'761.09$, see #247, please. (100% Profit within 8 Days)
http://twitter.com/forexcube
http://www.myfxbook.com/members/Fore...2011-50k/91281
---

End
This thread has been closen by FXcube at 2011 March 10, see p.17, #249

See attachment, please.
Template "Sicko_Scalp_Machine,M1.tpl"

EURUSD, M1, 2011 February 19

Cracked Real Account
Deposit: 80.-$, Beginning Date 2011 February 20
It's an old real testing account which I will use know for this crazy idea!

Daft Trading Plan:
1. Month: 80.-$ + 40.-$ = 120.-$
2. Month: 120.-$ + 60.-$ = 180.-$
3. Month: 180.-$ + 90.-$ = 270.-$
4. Month: 270.-$ + 130.-$ = 400.-$
5. Month: 400.-$ + 200.-$ = 600.-$
6. Month: 600.-$ + 300.-$ = 900.-$
7. Month: 900.-$ + 500.-$ = 1'400.-$
8. Month: 1'400.-$ + 600.-$ = 2'000.-$
9. Month: 2'000.-$ + 1'000.-$ = 3'000.-$
10. Month: 3'000.-$ + 1'500.-$ = 4'500.-$
11. Month: 4'500.-$ + 2'250.-$ = 6'750.-$
12. Month: 6'750.-$ +3'375.-$ = 10'125.-$

I don't know which level will be hit.

Equity, 2011 February 19

Equity: +86.70$

Warning:

If you trade M1 the whole day long you could lose all your money!

Unloading Time only a few minutes away.

swing is best and its not so stressfull

Hi sucre666

My sentiments exactly! To all intents of purposes I trade all trading style with zest.

Scalping is more like an optional beach-add on. (Optionaler Strandaufenthalt als Zusatz)

Might be that this could be then one for you!
http://www.forexfactory.com/showthre...d.php?t=114792

I wish you success & happiness!

Kindest regards
FXcube

Forex Scalping

Forex scalping is in high demand nowadays. Many forex brokers frown upon scalpers, but not us...

Definition of Forex Scalping

FX Scalping usually involves opening and closing a position in seconds or minutes for a few pips of profit. Even though scalping involves the use of leverage and higher leverage means higher risk, the short period of time a forex scalper is in a trade decreases the exposure risk that's inherent in trading or investing due to the holding of a position. If done correctly, scalping provides this additional degree of "risk control" that is not even present in regular day trading.

Why don't most brokerage firms like forex scalpers?

Because many brokers are making money trading against their clients through their dealing desks. Yes; this is still legal in the forex market. While this might not affect as much regular traders (even day traders) that stay in a trade for hours or days, scalpers are another breed of trader. The profitability of scalping currencies can be drastically reduced if the correct trading firm is not used. The small percentage of successful scalpers are usually "kicked out" by one forex broker after another...

Forex Scalping Platforms - the Good, the Bad and the Ugly

Scalpers use all sorts of platforms to scalp currencies, but probably one of the most common is MetaTrader 4 (a.k.a., MT4). MT4 is made by a Russian company and has become sort of the "de facto standard" among many forex day traders. The problem in using MT4 for scalping has nothing to do with the platform itself, but with the unscrupulous brokers that license the software and offer it to their clients (see the explanation earlier on brokers that trade against their customers).
For MT4 to be used in scalping the forex market without any limitations or restrictions, an ECN- or STP-type feed must be used...

Forex Scalping Robot - Automated Systems versus Manual Execution?

While many forex scalpers trade manually, advancements in computing technology and powerful trading platforms like MT4 have given birth to another breed of scalper: the system trader or automated scalper. Many scalpers create forex robots or trading algorithms that are fully or partially automated, increasing execution efficiency and available trading opportunities...

Forex Scalping System - How Does an FX Scalping Strategy Look Like?

Scalping strategies or systems in FX vary greatly. True scalping strategies all try to minimize losses to small amounts and they are all in the market a relatively short period of times. Some traders claim to have a scalping system, but instead allow losing positions to "bleed" for a long period of time with the hope of liquidating them at a future profit. That method of trading is not scalping and it's a sure path to disaster in FX trading.

Is Scalping Scalable?

One of the downsides of scalping in any market, not just forex, is a lack of scalability. Scalping systems and traders who scalp cannot continue to increase their trade size linearly as their account size or assets under management (AUM) grow. Eventually, the size of the trades taken while scalping will affect the overall profitability of the entire system, since more trade rejections and/or partial fills will be experienced.

http://www.forex-day-trading.com/forex-scalping.htm

Forex: How To Scalp Fundamentally

by Boris Schlossberg,
FREE Forex Report The 5 Things That Move The Market (Contact Author | Biography)

While technical analysis is critical to currency trading - especially for pinpointing entries and exits - it is insufficient on its own for creating a comprehensive trading game plan. Market sentiment in FX is driven primarily by the economic and geopolitical news of the day. The key players in the currency market - Fortune 500 multinationals, the world's central banks, multibillion-dollar hedge funds and the top tier investment banks that service them - do not care if there is a double top in the EUR/JPY on the hourly candles. Instead, they formulate their trades by analyzing the most recent economic news and geopolitical developments, as well as the latest pronouncements from G-7 monetary authorities. Therefore, the proper approach to FX trading can be summarized as follows: trigger fundamentally, enter and exit technically. (You could go directly to our Forex Walkthrough which covers Beginner, Intermediate, and Advanced sections.)

Popular wisdom in the market states that traders who want to trade fundamentally should choose a longer time frame involving daily, or even weekly, charts. Those traders who want to trade more short term (hourly charts, for example) should focus strictly on technical setups. As with so much conventional wisdom in FX, this bit of advice couldn't be more wrong. For the purposes of this article, we define scalping in FX as using short-term time frames (usually hourly charts or smaller) to make trades with targets and stops approximately 20-30 points in length. Not only is it possible to scalp FX fundamentally, but retail traders actually have a significant advantage over larger market players when it comes to executing their trades.

Macroeconomic News Moves the Market
One of the great aspects of the currency market is that it trades off of macroeconomic news that is transparent, impossible to fabricate and readily available to all market participants at the same time. (To learn more, see our complete Forex Walkthrough Economics Section.) The key news that drives the FX market is governmental economic data such as the latest employment statistics, GDP growth rates, trade balance reports, inflation readings and interest rate announcements. These reports are typically released every month and can been previewed on economic calendars.

Not only is the release of this data planned well in advance, but it is also reported instantaneously through a variety of news outlets including Bloomberg, Reuters, Dow Jones and CNBC, making it universally accessible. There's no need for traders to know about a secret contract that Intel (Nasdaq:INTC) may have negotiated, or the super-cool new product that a company like Apple (Nasdaq:AAPL) just prototyped at its labs in Cupertino, California. In FX, headline economic data really does move markets, and currency traders can take advantage of that fact. More importantly, individual traders often have a decided advantage in reacting to the news faster than the larger corporate and hedge fund players.

Retail Traders Can React Quickly
As the most liquid financial market in the world, forex trades almost US$2 trillion each day in volume (in April 2004, the Bank for International Settlements (BIS) reported that the forex market traded US$1.9 trillion a day). Most retail brokers will provide liquidity up to $20 million, meaning that they will allow any trader to buy up to $20 million worth of a currency pair at the current ask or to sell the same amount at the present bid. This trade size can accommodate 99% of all retail orders, making it easy for traders to open a position quickly without affecting the market. However, larger players that are looking to place trades worth hundreds of millions or even billions of dollars at a time will move markets. Therefore, by reacting quickly, retail traders in FX have a chance to front-run the big players and benefit from any momentum generated by that order flow. Economic news, whether favorable or unfavorable, can take up to several hours to fully filter through the market as traders adjust to the new information. This type of time frame offers astute retail traders a great opportunity to take advantage of the situation and scalp short-term profits as the pressure from the big players moves prices in the direction of the news.

How the Best Fundamental Scalps Occur
If event-driven scalping were as easy as buying good news and selling bad news, every FX trader would be inordinately rich. Of course, success is not that simple. First and foremost, good or bad economic results in and of themselves are usually meaningless to the market. FX markets trade on expectations and perception. Therefore, relative comparisons matter much more than absolute ones. For example, suppose the United States reported quarterly GDP growth of 5%, while the eurozone reported GDP results of only 1.5%. At first glance, it would appear that EUR/USD should decline because the U.S. results clearly show superior growth. However, if the market expected 7% GDP numbers from the U.S. and only 0.5% readings from the eurozone, the exact opposite might occur because eurozone news would have exceeded expectations, while U.S. results would have come up short.

However, playing the expectations game alone is not enough to create profitable trades. This is where technicals become integral to a successful fundamental setup. The best, most profitable fundamental scalps occur under technically extreme conditions. These highest-probability setups are created when a favorable fundamental surprise takes place under technically oversold conditions and vice versa. At that moment, the currency can bounce like a rubber ball off pavement, as every market participant who is short scrambles to cover his or her position. The same dynamic occurs in reverse. If prices are extremely overbought and fundamental news shocks to the downside, most market players will rush for the exits, creating a stampede of sell orders that generates a strong momentum-driven move that can be profitably traded to the downside.

http://i.investopedia.com/inv/articles/site/Scalp1x.gif Figure 1 Source: Fxtrek Intellicharts

Examples
Figure 1 shows an example of an actual fundamental scalp that a trader could have traded in the EUR/USD. On April 6, 2006, the euro was rallying against the U.S. dollar ahead of the monthly meeting of the European Central Bank. Rumors were flying on FX dealing desks that the ECB would surprise the market by raising rates by 25 basis points to 2.75%. The pair had become technically overbought, trading to the upper Bollinger band on the hourly charts as traders positioned for the news. When the announcement came that rates would stay the same (at 2.5%), prices receded, forming a red candle on the hourly charts. At the close of that candle, a trader could have gone short at 1.2306 using the swing high of 1.2331 as his or her stop and targeting the lower Bollinger band value of 1.2250 as his or her profit. (To learn more, see The Basics Of Bollinger Bands and Using Bollinger Band "Bands" To Gauge Trends.)

Notice that the trader in this situation would be using technicals for his or her entries, stops and exits, while using the fundamental data to trigger the trade, reasoning that disappointment from the ECB announcement would cause a retrace in the pair. Later on in the morning, ultra-dovish commentary by ECB chief Jean Paul Trichet helped push the pair much lower - the currency trader would have come out of the trade with a profit of 50 points in less than an hour. (For more insight, read Get To Know The Major Central Banks.)

http://i.investopedia.com/inv/articles/site/Scalp2.gif Figure 2 Source: Fxtrek Intellicharts

Figure 2 shows a good example of why both technical and fundamental considerations are critical to successful event-driven scalping. On April 12, 2006, unemployment figures from the U.K. seriously disappointed forex traders, showing an increase of 12,500, rather than the market projections of an increase of 6,500. (For further reading, see Surveying The Employment Report.)GBP/USD prices had been rising steadily for days as the pair climbed over the important 1.7500 level. Prices were clearly overbought, with the pair trading near the upper Bollinger band. A trader might have reasonably expected the news to trigger a sell-off, as the market would have to reassess its optimistic view of the U.K. economy. However, if the trader jumped the gun and shorted the market right away instead of waiting for some technical confirmation of price weakness, he or she would have gotten into some trouble. Why? Because instead of trading lower, the pair burst higher as pound longs tried hard to ignore the negative news and made one last effort to rally prices. As a result, the trader who jumped the gun would've been stopped out, losing 30 points only to watch in dismay as, two hours later, the price action finally exhausted itself and the fundamental facts began to weigh on the market. Therefore, triggering fundamentally but entering without a sound technical signal can hurt the forex trader.

Conclusion
Trading FX is a multifaceted affair that requires both fundamental knowledge and technical expertise. Not only is scalping on economic news possible, it can be highly lucrative - as long as the trader pays attention to technicals as well as fundamentals. Like all worthwhile ventures in life, scalping fundamentally is not easy to achieve. It takes time and practice to learn this methodology, but those who are able to master this approach can enjoy long-term success in the currency market. For further reading, take a look at our Forex Walkthrough.

by Boris Schlossberg

Boris Schlossberg serves as director of currency research at GFT Forex. He is a weekly contributor to CNBC's Squawk Box and a regular commentator for Bloomberg radio and television. His daily currency research is widely quoted by Reuters, Dow Jones and Agence France Presse newswires and appears in numerous newspapers worldwide. Schlossberg has written for publications like SFO magazine, Active Trader and Technical Analysis of Stocks and Commodities. He is also the author of "Technical Analysis of the Currency Market" and the co-author of "Millionaire Traders" with Kathy Lien.

http://www.investopedia.com/articles...damentally.asp

Forex Scalping - Extensive Guide on How to Scalp Forex
January 13, 2011 at 11:32 AM
Forex scalping is a popular method involving the quick opening and liquidation of positions. The term “quick” is imprecise, but it is generally meant to define a timeframe of about 3-5 minutes at most, while most scalpers will maintain their positions for as little as one minute.
The popularity of scalping is born of its perceived safety as a trading style. Many traders argue that since scalpers maintain their positions for a brief time period in comparison to regular traders, market exposure of a scalper is much shorter than that of a trend follower, or even a day trader, and consequently, the risk of large losses resulting from strong market moves is smaller. Indeed, it is possible to claim that the typical scalper cares only about the bid-ask spread, while concepts like trend, or range are not very significant to him. Although scalpers need ignore these market phenomena, they are under no obligation to trade them, because they concern themselves only with the brief periods of volatility created by them.

Forex scalping is not a suitable strategy for every type of trader.
The returns generated in each position opened by the scalper is usually small; but great profits are made as gains from each closed small position are combined. Scalpers do not like to take large risks, which means that they are willing to forgo great profit opportunities in return for the safety of small, but frequent gains. Consequently, the scalper needs to be a patient, diligent individual who is willing to wait as the fruits of his labors translate to great profits over time. An impulsive, excited character who seeks instant gratification and aims to “make it big” with each consecutive trade is unlikely to achieve anything but frustration while using this strategy.
Scalping also demands a lot more attention from the trader in comparison to other styles such as swing-trading, or trend following. A typical scalper will open and close tens, and in some cases, more than a hundred positions in an ordinary trading day, and since none of the positions can be allowed to suffer great losses (so that we can protect the bottom line), the scalper cannot afford to be careful about some, and negligent about some of his positions. It may appear to be a formidable task at first sight, but scalping can be an involving, even fun trading style once the trader is comfortable with his practices and habits. Still, it is clear that attentiveness and strong concentration skills are necessary for the successful forex scalper. One does not need to be born equipped with such talents, but practice and commitment to achieve them are indispensable if a trader has any serious intention of becoming a real scalper.

Scalping can be demanding, and time-consuming for those who are not full-time traders. Many of us pursue trading merely as an additional income source, and would not like to dedicate five six hours every day to the practice. In order to deal with this problem, automated trading systems have been developed, and they are being sold with rather incredible claims all over the web. We do not advise our readers to waste their time trying to make such strategies work for them; at best you will lose some money while having some lessons about not trusting anyone’s word so easily. However, if you design your own automated systems for trading (with some guidance from seasoned experts and self-education through practice) it may be that you shorten the time which must be dedicated to trading while still being able to use scalping techniques. And an automated forex scalping technique does not need to be fully automatic; you may hand over the routine and systematic tasks such as stop-loss and take-profit orders to the automated system, while assuming the analytical side of the task yourself. This approach, to be sure, is not for everyone, but it is certainly a worthy option.

Finally, scalpers should always keep the importance of consistency in trade sizes while using their favored method. Using erratic trade sizes while scalping is the safest way to ensure that you will have a wiped-out forex account in no time, unless you stop practicing scalping before the inevitable end. . Scalping is based on the principle that profitable trades will cover the losses of failing ones in due time, but if you pick position sizes randomly, the rules of probability dictate that sooner or later an oversized, leveraged loss will crash all the hard work of a whole day, if not longer. Thus, the scalper must make sure that he pursues a predefined strategy with attention, patience and consistent trade sizes. This is just the beginning, of course, but without a good beginning we would diminish our odds of success, or at least reduce our profit potential.

Now let’s take a look at the contents of this article where forex scalping is discussed with all its details, advantages and disadvantages. Our suggestion is that you peruse all of this article and absorb all the information that can benefit you. But if you think that you’re already familiar with some of the material, to shorten your route, we present the table of contents of this article.
Contents

1. How scalpers make money:
Here we will take a look at the logic behind scalping, and we’ll discuss the best conditions and necessary adjustments which must be made by a scalper for profitable trading.

2. Choosing the right broker for scalping:
Not every broker is accommodative to scalping. Sometimes this is the stated policy of the firm, at other times the broker creates the conditions which make successful scalping impossible. It is important that the novice scalper know what to look for in the broker before opening his account, and here we’ll try to enlighten you on these important points.

3. Best currencies for Scalping:
There are currency pairs where scalping is easy and lucrative, and there are others where we advise strongly against the use of this strategy. In this part we’ll discuss this important subject in detail and give you usable hints for your trades.

4. Best times for Scalping:
There is an ongoing debate about the best times for successful scalping in the forex market. We’ll present the various opinions, and then offer our own conclusion.

5. Strategies in Scalping:
Strategies in scalping need not differ substantially from other short-term methods. On the other hand, there are particular price patterns and configurations where scalping is more profitable. We’ll examine and study them in depth in this section.

a. Range Scalping: Some traders consider ranging markets better suited for scalping strategies. Here we’ll examine why, and how to scalp under such conditions.

b. Breakout Scalping: We’ll examine news breakouts, and technical breakouts separately and discuss suitable scalping strategies for both.

c. Trend Scalping: Here we’ll take a general look at forex scalping in trending markets.

6. Trend Following while Scalping:
Trends are volatile, and many scalpers choose to trade them like a trend follower, while minimizing the trade lifetime in order to control market risk. In this part we’ll examine the usage of Fibonacci extension levels for scalping trends.

7. Disadvantages and Criticism of Scalping:
Scalping is not for everyone, and even seasoned scalpers and those committed to the style would do well to keep in mind some of the dangers and disadvantages involved in using the style blindly.

8. Conclusions:
In this final section we’ll combine the lessons and discussions of the previous chapters, and reach at conclusions about who should use the forex scalping trading style, and the best conditions under which it can be utilized.

Next: How Forex Scalpers Make Money

http://www.forextraders.com/forex-strategy/forex-scalping.html

Two different scalping strategies, two different timings January 19, 2011 at 11:23 AM
This article is part of our guide on how to use scalping techniques to trade forex. If you haven't already we recommend you read the first part of series on forex scalping.

It is possible to think of scalping in two different ways. In one approach, the trader is concerned purely with the slow price fluctuations that occur in a short period time, and uses technical methods to trade them. In the other approach the scalper can also be a trend follower, or a swing trader, but he uses very small, fast trades as a rule. The latter approach tells the trader to exploit rapid and sharp price movements, while maintaining an eye on the overall market direction in order to control risk exposure. The first approach, on the other hand, requires that the trader benefit from slow, and small price movements which go nowhere: while the price is moving slowly up and down, it will generally return to where it left, and it is possible to trade it without taking great risks.

In this section we’ll take a look at both approaches. We’ll discuss the pure scalping approach in the context of ranging markets where volatility is the main method for generating profits. We’ll also examine the combined approach while studying the subject of scalping with the Fibonacci extensions in trending markets. Let’s note here that technical strategies that can be applied in day , or swing trading are equally valid in scalping as well, and that there’s no difference (apart from the role of the spread) between a 5-minute or 5-month chart as far as analysis is concerned. The reader is invited to read about technical indicators and strategies here.

Before going on further and discussing the details of the subject, however, we wish to say a few words on the psychological aspect of scalping. As we mentioned before, scalping is an emotionally intense activity where the trader must keep calm nerves in the face all kinds of unexpected events. Clearly, overcoming these issues and maintaining a consistent and disciplined approach to trading is a precondition to achieving any kind of profit in the forex market. So how does the trader achieve this necessary degree of emotional restraint and composure?

People remain calm and composed in conditions with which they are familiar and knowledgeable about. Most of us are disturbed if a car makes a sudden movement, but are not bothered while an airplane is taking off with great momentum and speed. Similarly, the same person can perceive anxiety by a small unexpected cut on a finger, yet feel relatively composed while heading to the hospital in order to be operated on by a surgeon. In other words, our emotional responses to risky activities and disturbing conditions are not entirely dependent on the nature of what is being experienced, but more on what is being perceived by us.

As such, in order to be successful a scalper must accustom himself to market conditions in such a way that losses and profits in the markets are expected and acceptable. We need to convince ourselves, and teach that there is no danger, so that we can trade with confidence. Needless to say, if there are real causes for concern, fear is appropriate. If we are risking more than we should, taking too much leverage, or don’t know what we are doing, we’ll feel nervous, timid, and insecure about our trading decisions. In that case, the first step is ensuring that we are not taking unnecessary risks. It is difficult for scared money to profit, and even more so in scalping, therefore, we need eliminate the logical causes of fear from our practice.

If after removing such causes we still feel nervous and worried about what we are doing, it is necessary to take additional steps to deal with the causes of our irrational perceptions. These steps should involve the automation of our tactics. The suggestion for scalpers is to begin this learning process with very small sums which are then increased and combined as experience allows greater, healthier returns. Since at the earliest stages the purpose is not to make profits, but gaining experience, small accounts with minimal leverage are necessary. There is very little point in worrying about a small loss if by realizing it we are gaining important lessons about what should and should not be done in the markets. By being accustomed to difficult market conditions which accompany scalping in the markets, we can prepare ourselves for the ultimate challenge of trading significant sums in the forex market. As we like to say, no body can leap to the top of a mountain or a skyscraper, but by climbing on rocks, or using the stairs many people are capable of realizing such an seemingly impossible deed.

Next: Pattern Scalping Strategy

http://www.forextraders.com/forex-strategy/forex-scalping/two-different-scalping-strategies.html

Pattern Scalping Strategy

January 19, 2011 at 11:22 AM
This article is part of our guide on how to use scalping techniques to trade forex. If you haven't already we recommend you read the first part of series on forex scalping.

Most scalpers try to benefit from price patterns in trading the markets. Those who like calmer markets choose to exploit formations like triangles and flags, while those who prefer trading the news tend to be active during breakouts. There’s no single type of market where scalping can be applied to best benefit, because there are many different kinds of scalpers. But there are some technical patterns which offer their greatest benefits to a scalping strategy, and those are the patterns which we’ll examine here.
First we’ll take a look at scalping during breakouts, and then study ranges. Afterwards we’ll discuss trend-scalping with fibonacci levels under a separate heading.

a. News Breakouts
The most typical and significant breakouts observed on any trading day are those associated with important news releases, regardless of their nature. Volatility maybe caused by an unexpected government announcement, at other times a surprising result from a statistical release, and sometimes a mundane piece of data which the markets choose to interpret in an agitated manner. The characteristic of these events is a rapid rise in volatility: a strong initial movement which then has aftershocks, so to speak, lasting over hours and generating swings and fluctuations which are then exploited by scalpers. Scalping in the aftermath of news releases is different from scalping in stale, range bound conditions with respect to its stop-loss requirement, the average life of a trade, and the necessary risk controls.
Although this kind of scalping has some resemblance to fundamental trading, in fact it is a purely technical approach, and has little to do with the real nature or significance of the news or data releases. It is not possible to fully evaluate the meaning of a piece of economic data in the ten minutes where market reaction is most intense, and as such, there is no point in giving fundamental meanings to the market’s behavior during the same time period. This is especially the case when we consider that news releases are revised frequently, and sometimes drastically following the initial release.

http://www.forextraders.com/assets/a...kout-chart.png

In the above graph we have the hourly EURUSD chart and the highlighted region shows the immediate price reaction to the news release at 8 am, followed by its subsequent legs. As soon as the important piece of news was released the market generated a rapidly increasing momentum which never gave traders a chance to look back. The maximum value around 1.4290 was also the opening price of the hourly bar, and it was never revisited. It is easy to conjecture that soon after the release, and in the period immediately preceding it, spreads had widened significantly, and opportunities for scalping were limited. Yet, right after the news release liquidity came gushing back to the market, as traders hastened to readjust their positions. Favorable conditions for scalping would exist within about ten minutes after the news release.

The most important rule while exploiting a news breakout is to stay away from the market during the short period around the news release itself. Unless one is using automated tools for scalping, this brief period is too agitated, and chaotic to allow informed decisions. Worse yet, in the short term the brief but powerful widening of spreads makes technical planning an insurmountable task at times. Instead, a successful scalper will use this brief period to identify the possible direction of the market before entering positions in accordance.

In the example above, we’d be able to scalp the market for a four-hour long period, during the four red candles in the highlighted area. The best way to ensure against suffering losses in the volatility of this period is using a reasonably tight stop with a somewhat looser take-profit order. In example, if we open a short position at around 1.4250 during the third hour, with a 3-pip spread cost to be paid to the forex broker, we’ll place our stop loss at 1.4255, while our take profit order will be at around 1.4240. This would ensure a 2:1 risk-reward ratio for the position being maintained.
It is a good idea to add a time-stop to a scalping position as well. What is a time stop? This is a kind of stop order which will close a position once a certain period of time is reached, regardless of the amount of profit or loss involved (although of course, both the potential loss or profit are less than what would be indicated by the stop-loss or take profit orders). For example, in our previous example, we had placed our stop loss at 1.4255, while our take profit order was at 1.4240. When we add the time-stop to our initial order at, say, 2 minutes, we’ll close and exit our position two minutes after its opening regardless of the profit or loss involved in the trade.

Why do we use the time stop? We had defined previously that as scalpers we don’t want to be exposed to the markets for a long time. But the market does not need to listen to our expectations, and might as well refuse to hit both the stop-loss and take-profit points for a long of period (at least in the terms of the scalper). The longer we expose ourselves to market moves, the greater the risk of a sudden, sharp movement against our expectations. In order to prevent being caught in such an indecisive, but also dangerous market, we use to time stop as a safety valve allowing us to bail out of our positions if things don’t turn out as we had initially expected.

Scalping of news breakouts can be very profitable, because all the ideal conditions required by scalpers are present. The swift, large, moves which occur in the brief timeframe during which scalpers are willing to expose themselves to the market allow the formulation of profitable forex scalping strategies.

b. Technical breakouts
What we term a technical breakout is the case where a range breaks down without any obvious news catalyst. News are released continuously all over the world during the trading day, and although it is often possible to tie a piece of the price action arbitrarily to a piece of news being released somewhere in the world, it is not always practical to identify what causes what in the chaotic trading environment with any certainty or exactitude. These seemingly inexplicable, sudden and difficult to predict breakouts will be termed technical breakouts in this text.

Scalping this kind of breakout requires a lot more conservatism in comparison to the scalping of the usual news breakout. There is very little clarity as to what is causing what, and a market that is up may soon reverse and go down with little or no warning. To avoid being caught up in the chaos of such conditions, it is a good idea to use even smaller trade sizes, sensible stop-loss orders,

http://www.forextraders.com/assets/a...outs-chart.png

In this chart we see the hourly movements of the USDJPY pair confined between 94.02 and 94.71. The highlighted area shows the region we would like to trade. Since the established range rests between support and resistance levels which are tested only twice, we would not have had the opportunity to trade the range itself developing on 28-29 July for profit, using scalping or any other method. On the other hand, we are ready to do some scalping in order to exploit the breakout which occurs at around 7 am on 29th July.

The volatile nature of breakout is demonstrated by the green candle next to the small red arrow on the chart where we see observe the closing price of the bar only slightly above the resistance line displayed. Scalping is suitable conditions such as these because scalpers do not need to think long and hard about the ultimate direction of the price. In the timeframe of a one or two hours, five, ten minutes, the price action is more or less random, and it is not very sensible to try to seek logical explanations for it. Scalpers can avoid doing so, and that is their advantage in breakout scenarios, and similar sudden and unpredictable markets.

While scalping this breakout, we’d use a chart with a shorter term, and not the hourly graph which we see above. Fortunately, the fractal nature of price charts allows us to trade a 5-minute chart in a way the same way that we trade a 5-month chart; the scalper only needs to apply the general rules of technical trading to the shorter time frame. The key issue is making sure that you’re on board the trend, or in harmony with the phase of the range pattern (up, or down) while scalping.

c. range Patterns
A scalper trading a range pattern will try to identify the time periods and price patterns where activity is most subdued, and will exploit them for profit. We have already discussed some of the general concepts in trading ranges, here we’ll try to apply them in greater detail.
Price charts are similar to fractals. They are self-similar at multiple time periods, with a price range at 30 minutes sometimes accompanied by a trend on a 30 second chart. While trading ranges scalpers must keep both the hourly, and the minutely price events in mind. We’ll use hourly charts to ensure that overall activity in the market is subdued, while using the short term price action to identify and trade profitable periods.

http://www.forextraders.com/assets/a...kout-chart.png

The hourly chart of the USDCHF pair presents an interesting scenario for scalpers. A large hourly range lasting for a number of days is coupled to fairly strong directional movements requiring some trend following skills for successful exploitation.

At this stage, observing the price action in the chart, we must ask ourselves the question: can we determine the severity of short-term volatility by examining charts which show long term activity? The answer is no. Although we can determine the ultimate direction of short term price movements by examining long term charts, volatility on an hourly chart, for example, does not need to be duplicated on a short term chart exactly. The price may move 100-pips in the course of an hour, and the chart would show a large green candlestick, but all that large movement could have happened in the last ten minutes of trading, with the previous fifty minutes presenting choppy, and boring conditions. In other words, the scalper must concentrate on the time period before him, especially if he is aiming to exploit random price movements that go nowhere (as in range trading), in contrast to scalping a strong directional trend. In the latter, the perspective provided by long term charts may be helpful, but in range scalping utmost attention must be devoted to the 1-minute, 5-minute graph which is being traded.

In the graph above the price is confined between 1.0654, and 1.0741. The three red arrows show us the opportunities where we can be confident that the range will hold: when the resistance line is tested for the third time, we will consider this an opportunity for sell-side scalping. When, at around 27th July 5 am the price rebounds from the support line for a second time, and later for a third, we’ll regard the market conditions as being ideal for establishing long positions repeatedly.

d. Flags
Many scalpers prefer to exploit range patterns as they present quiet, tame conditions where various strategies can be utilizied without the danger of large losses which would arise in conditions of high volatility. Scalpers who thrive in these conditions have no great expectations from individual trades, and are perfectly content with unexciting, slow markets where “nothing is going on”, from the point of view of a trend follower. In spite of the brief lifetime, and small profit of individual trades, great gains are realized as profits of several hours are combined at the end of the trading day.

http://www.forextraders.com/assets/a...lags-chart.png

In this fifteen minute chart of the USDCHF pair we observe a strong hourly trend only briefly interrupted by the highlighted flags. Although the formations are not perfect, they are perfect as continuation patterns, and present quite, subdued periods where the scalper can test his skills. Of the three flags highlighted in this chart, the first and the third are the tamest, and the easiest to exploit. In both of these the price moves up and down in a simple range, and doesn’t possess directionality.

How does the trader exploit this situation? In essence we’ll regard the flags as small range patterns the upper and lower bound of which can be used as trigger points telling us to reverse the direction of our trade. When the price rises and approaches the upper edge of the flag, we won’t trade, but wait until it is reversed and a sell order is possible (we don’t want to enter a sell order immediately because of the possibility of a breakout). After that we’ll enter and exit small and quick sell orders trying to exploit the established range pattern. Conversely, when the price falls and touches the lower bound of the flag pattern, we’ll wait until it begins to rise again, and then we’ll scalp the market with buy orders.

It is quite simple and easy to scalp the market when there are flags appearing. But flags are very strong continuation patterns, and we must be careful not to get caught in the breakout when the flag pattern dissipates and gives way to the momentum of the main trend.

Triangles can be traded in the same manner as well, and any consolidation pattern can be used for scalping within the range established. As we mentioned before, the rules of range trading can be applied, along with the appropriate strategies, while using the necessary risk controls inside the preferred brief time frame of scalpers.

Next: Using Fibonacci Levels for Scalping the Forex Market

http://www.forextraders.com/forex-st...-strategy.html

Using Fibonacci Levels for Scalping the Forex Market
January 19, 2011 at 11:21 AM

This article is part of our guide on how to use scalping techniques to trade forex. If you haven't already we recommend you read the first part of series on forex scalping.

Scalping a strongly trending market is very different from scalping a quiet, tame market where price action is confined in a small range and is going nowhere. In a ranging market scalpers will buy or sell, and wait until the price comes back to where it left, and keep gathering small profits until the prevailing range pattern is eliminated. When trading a trending market, however, we must be careful to ensure that our orders follow the established trend. Counter-trend scalping is also possible, but since the preferred strategy of most successful traders is trend following, we’ll concentrate our attention on using fibonacci extensions in a trend following method in this article.

High volatility requires a strict approach to realizing both losses and profits. A scalper who is trading in a tame, range-bound market can be a bit more relaxed and arbitrary about his risk controls (they must still be applied with discipline, but not in the robotic manner which must be applied in trending markets), because the market is not expected to make sharp movements due to fewer market participants and a smaller amount of liquidity (not to mention that there is no news catalyst for strong price movements.) But a trend scalper must deal with such conditions at all times.

Trend Following Method
In this section we’ll discuss the use of the Fibonacci extension levels for the determination of trade direction while scalping trending markets. Scalping in trends can be difficult, because of the size of the sudden fluctuations, and the lack of clarity (at least in the short term) with respect to the eventual destination of the price. The Fibonacci extension levels are very useful in analyzing trends in all cases, and scalping is no exception to the rule.

http://www.forextraders.com/assets/a...wing-chart.png

Our aim in using this indicator is identifying levels where the price may rebound. For drawing the extension, we’ll identify the beginning and end of the price movement which we expect to be extended, so to speak, in order that a new trend is created. In the 5-minute chart of the USDCHF pair, we have identified a sudden and sharp movement beginning at around 4 am on 23rd July, and decided to draw its extension after the first red bar where its momentum is temporarily checked. Upon drawing the extension in the indicated area, we notice the 61.8, 100, and 161.8 extensions of the first movement.

Careful examination of the chart above shows us not only that the price rebounded several times at the extension levels of the indicator, but also that these levels served as strong attractors pulling the price towards themselves. The 100 percent extension level, for instance, provided a support which prevented the price from “falling through” twice, as observed. And the other two levels similarly created performance bars for the trend which, once broken, created further momentum for the trend.
Trading against a trend is dangerous, and the risk of sudden reversals is no less dangerous for scalpers. As such we need a tool which will help us identify the general direction of the trend, so that even if we suffer some losses, eventually our gains will justify our trading activity. The Fibonacci extension level is a great tool for this purpose since it allows us to guess with a reasonable degree of accuracy the main momentum of the price action. In the above example, we’d be scalping the market by buying at the red arrows shown on the chart. If the price returned to the resistance or support levels indicated by the extension level, we’d stop trading for a while and await the market action to present some clarity (is the trend reversing?) But as long as the trend is intact our strategy would involve scalping between the extension levels to accumulate profits.

Next: Forex Scalping - Criticism and Disadvantages

http://www.forextraders.com/forex-st...ing-forex.html

Forex Scalping - Criticism and Disadvantages
January 19, 2011 at 11:21 AM
This article is part of our guide on how to use scalping techniques to trade forex. If you haven't already we recommend you read the first part of series on forex scalping.

Scalping is popular, and profitable for some traders, but it is not without its risks. While trading, many scalpers are similar to marathon runners. They need to capitalize quickly on arising opportunities, and if those opportunities fade, a profitable trade must be a losing one, because a typical scalper will not wait long enough for another opportunity to arise for the same trade. The advantage of this approach lies in the many profit opportunities presented. For a long term trader, even a swing trader, one loss in a trade is by definition a big and important loss. Long term trades require considerable investment in time, and energy before they are profitable, and failure in one is an important setback. The scalper doesn’t suffer from this problem. He can fail in any single trade, regardless of its time or place, and still make a profit if the overall balance of his positions is profitable. This aspect can sometimes reduce stress, and create a more optimistic trading psychology as well.

Yet, short-term trading does not, by any definition, offer the keys to a smooth and risk-free path to great profits. The scalper is playing a game of probability, while the long-term trader is playing the same game with the help of fundamental analysis and strategies. Although each trade is a lot less important for the scalper, in order to profit, he must still succeed in the overwhelming number of his decisions. A scalper will enter and exit his positions while trading a trend, but he still has to make choices about the direction of the main price action. While trading a ranging market, the scalper may not need to make many decisions about directionality, but he has to have a good idea on how long the low volatility environment will last. In other words, discipline and planning are just as important for scalpers, but in a different way in comparison to what is usually experienced by other traders.
In this section we’ll analyze the scalping strategy and discuss some of its disadvantages so that you can trade with calmer, more reasonable expectations while employing it. Our purpose is not contradicting the experiences of successful scalpers, or discouraging those who desire to adopt this method for future profits, but merely to help you recall that the strategy does not offer risk-free, easy trades for beginners or undisciplined individuals.

The “Brokers Hate Scalpers” myth
First of all, let’s consider this venerable myth that has been publicized over the internet on both forums and blogs dedicated to forex trading. The argument of the propagators of this myth goes as follows: “Scalpers take little risk while trading, and are often successful. In order to hedge their positions, forex brokers counter-trade their clients, with the consequence that if a trader makes a profit, the broker, by counter-trading his position, suffers losses. Of course that makes brokers hate scalpers.”
Let’s first state that no forex trader will do himself any good by making real, or imagined enemies of brokers. Regulated brokers are monitored by authorities, and most of the firms in the business are legitimate actors with decent practices. There’s no way of trading the market without brokers (or ECN’s, but they are not used very often, and have their own disadvantages). And there’s no logic or merit in demonizing brokers as crooks or thieves. We, as traders, want to trade the markets, and to do that we need the services of firms which are monitored and regulated by the authorities.

In previous sections we have already discussed how brokers hedge against client losses, and noted that a majority of client positions can be netted out against each other without the broker having to commit any funds. In fact, when such matches can be found, the broker does not even need to pass the buy or sell order client to the bank: all that it must do is matching the order with another customer’s opposing order while pocketing the commission, and assuming zero risk. The problem with scalpers arises because their rapid entry/exit orders make the task of hedging hard for forex brokers with slow servers or outdated software. When they can’t do so, they get nervous, become worried that the scalper is trying to manipulate the system (exploiting latency issues, as they are called), and sooner or later terminate the forex account of the scalping trader.
There are no statistics on the success ratio of scalpers, but there is no reason to assume to their success rate is any different from that of the overall market. Indeed, scalping is a demanding, and somewhat more sophisticated trading style in comparison to day-trading, or swing trading; there is no reason to expect that beginners will do better in scalping in comparison to their performance in these other trading styles.
Our analysis is confirmed by the public statements of many forex brokers present on websites and blogs throughout the web. The majority of established brokers actually have the stated policy of allowing scalpers to open or close positions in as short a time period as they desire. What is more, since scalpers trade much more frequently than regular traders, they are a good source of revenue for any kind of forex broker. No broker with an updated software and platform would be willing to deny scalpers the style which they like most unless he wants shrink his own business.

Is it a good idea to scalp in strongly trending markets?
Many traders favor scalping in strongly trending markets. This approach is defended on the basis of the notion that scalpers thrive in volatility, and that trends cause a great deal of volatility creating many trading opportunities. But is this idea justified on the basis of facts and analysis?

Let’s first remember that while scalping, one misplaced, carelessly created trade can wipe out the gains of tens of successful trades in a short time. A scalper needs consistency above everything else. Discipline in trade sizes, take profit, and stop-loss orders, and a degree of skepticism towards arising opportunities are important components of a successful trading strategy. Let’s ask ourselves, then, which kind of markets offer the best conditions for the implementations of these principles? Would scalpers thrive in strongly trending and volatile markets, or quiet, calm markets where activity is subdued and volatility is low? Naturally, the best conditions will be found in the latter. Calmer markets allow us to exploit small fluctuations over a long time with little risk and good profits. Trending markets move rapidly, with widening and contracting spreads, where exiting a position before it reaches its full potential can be dangerous, and maintaining a calm and composed attitude is an additional problem.

We read online that scalping is best in strongly trending, liquid, volatile markets, and some of us wonder why so many people subscribe to these beliefs. This attitude is present either because the traders who write the articles don’t have that many experiences in scalping or because they use scalping strategies on a trend following scheme. The latter approach is not very useful to beginners, however, because they mostly choose the scalping style to make quick profits without worrying much about analysis or strategy.

Picking up coins from a railroad
Indeed, scalping after news releases, or during very strong, volatile micro-trends can be similar to picking up coins from a railroad for a living. A determined practitioner can create a sizable income from this practice if he is persistent and patient enough, but also takes a small risk that can be extremely costly if it is not properly protected against. What is the risk? Of course, it is that he will be run over by the approaching train of a market shock, and will lose all his profits, and his ability to make any profit in the future as well. Is this a valid negotiation, a compromise? The answer to the question depends on your personality and approach to life in general.
During a trend, the scalper cannot exploit “idle volatility”, or the directionless fluctuations that are often found in ranging markets. Since the market is strongly directional, he has to find a way of identifying the trend and exploiting it with small sized, and numerous orders.

Emotional Pressures
Scalping is probably not the best choice for a beginning trader. The style demands constant attention, concentration, and diligent adherence to principles. The fact that trades are small-sized and quick means that there is a need to be very methodical about trade sizes especially, because irregular sizes will make us blind while trying to determine the performance of our account, and prevent the achievement of a smooth, regularly rising trading account.
For a real scalper, fear is not the main emotional issue, unlike the case with many other types of traders. Since risk in each trade is usually very small, and it is possible to stop and exit any position without much trouble, there is little danger of the account being wiped-out or greatly reduced as a result of any single trade. Yet, the major emotional issue faced by scalpers is overtrading and agitation.
Scalping requires patience. The trader must open many positions in the course of a single hour on an ordinary day, and at times, the slow accumulation of profits can be very frustrating. The trader may regret that he’s spending so much time trying to profit from minute price fluctuations. He may feel dismayed that so much effort bears so little fruit. Many other factors can lead to dissatisfaction and unhappiness which can cause the trader to enter an agitated state of mind. And yet, agitation is the worst enemy of a scalper. His finger must press the right buttons on the screen, must enter the correct prices, and place the proper decisions many times during the trading hours, and an uneasy, nervous mind will be prone to making many errors. A nervous mind will make the scalper feel like he’s fighting the markets, and lead to many unjustified and deleterious trading decisions.
The scalper must know where to stop, and yet if he’s nervous, he’ll be unable to stop. Overtrading, based on the belief that the next trade will be the successful one “since one’s luck can’t go wrong so often” may quickly erode the account balance of any trader, and it’s especially dangerous for the scalping strategy. It is on the whole a good idea to suspend scalping activity if you’re feeling that the emotional burden of scalping is too much for you at any time. Do not fight yourself, or the market, but stop trading for a while. It is certainly better than losing your wits trying to profit by battling the market, in other words, trying to improve by worsening your condition.

Getting rich, or enriching the broker?
The scalper is running against time in his dealings with the broker. He will make profits, suffer losses, open and close positions with different scenarios in mind, but in all that while he will still be paying the broker his due in the spread. Regardless of the size of profits or losses, the broker’s share must be paid, and the trader has to earn at least that much to make sure that his account is not bleeding money.
The broker’s fee in the spreads is almost negligible when trading on a long term basis. A 3-pip spread cost is insignificant for a trader who makes 50-60 pip profit in trading, or even more in positions held over even a longer time. But the scalper’s profits are usually much smaller, in many cases closer to 5-10 pips for a competent person, and the spread is anywhere between 30 to 50 percent of the gains.
Any scalper should keep a list of his trades which shows his actual gains, losses, and the amount that is paid to the broker. If the cost of the spread is about twice as big as the profits of trading, it is a good idea to change the trading strategy used, or to change the broker and open an account with another one which requires lower spreads. If average profit in pips is equal to the spread, our trade record can be improved, and better profits are possible. In the unusual case that the scalper’s profits are a lot larger than the spread it is time to add funds to the account, or perhaps increase leverage gradually.
Traders need not be worried when the broker is making good profits. As long as the relationship is reciprocal, there is no harm in seeing the broker making gains which are even more sizable than what is achieved by the trader. The threshold is profitability. As long as we are gaining from activity, there’s no reason to be worried about the fact that the broker is also benefiting from the relationship.

Clustering Illusion
Let’s conclude this part by briefly discussing the dangers posed by faulty interpretation of data. Sadly, many beginning scalpers still evaluate their results on the basis of some ethereal concept termed luck. In a string of wins, good luck is thought to be the causal agent, while a strong of losses makes us think that we have no luck on that day. Since many believe that one cannot have bad luck continuously, there’s a tendency to expect profits soon after a string of losses, and vice versa. Since individual results in short term trading are random, there is no justification for this reasoning, and at least as far as mathematics is concerned, a gain or a loss are equally likely even after a string of ten or twenty gains or profits in a raw.
The other issue which traders must grapple with while evaluating their results is the clustering illusion. In this case, traders will see “order” in a string of random data (such as a list of scalping trade results). After seeing a string of, let’s say, five wins, they will begin to assume that this time their strategy makes wins more likely, and in response they will increase trade sizes, with often disastrous results.
In order to achieve profitability and a degree of safety in scalping it is extremely important that consistency in trade sizes be maintained. If you make small profits with ten 1 lot scalps, and occasionally decide to throw in 3, 2 lot trades where you feel you’re doing well, you’re taking the risk of never going beyond breakeven, in the best case scenario. Make sure that you don’t get deluded by luck, or the clustering illusion to randomize your trade sizes. You can instead use methods like the z-score to see if the win-loss streaks of your scalping strategies are any different from random results.

Next: Forex Scalping Guide - Conclusions

http://www.forextraders.com/forex-strategy/forex-scalping/forex-scalping-criticism-and-disadvantages.html

Forex Scalping Guide - Conclusions
January 19, 2011 at 11:20 AM

This article is part of our guide on how to use scalping techniques to trade forex. If you haven't already we recommend you read the first part of series on forex scalping.

Not all traders will do well in scalping, but many can acquire the necessary skills for this strategy by careful practice using a step-by-step approach. As with most other activities, it is better to begin your training at the most basic level and to add upon your gains at each pace to approach perfection.
Controlling your emotions will probably be the first challenge you face as a beginning scalper. It may be difficult to adapt to the violent swings that you will have to deal with routinely, but by avoiding certain time periods, and adjusting your stop-loss order accordingly, there should never be too big a danger in scalping.

We’ll conclude this article by briefly listing the principles which must be adhered to by a committed scalper before consistent profitability is attained.

1. Discipline: Scalping is for disciplined traders. A methodical, even mechanical approach to trading currencies will increase the potential profits of any scalper, and if automation is necessary, there is no logic in delaying it. Acquiring mental discipline may require time and effort, but its beneficial in every aspect of life, and nothing will be lost as you put your trading career in order. If a trade must be closed, it must be closed. If losses need to be taken, they must be. Scalping doesn’t allow the trader much time for vacillation or worry, and whining and complaining have no place in this style. Face the realities and act in accordance: success is just around the corner.

2. Patience: Impatient, or arrogant traders don’t have a stellar future in scalping. Many people have attained great profitability in trading, but only through persistence and determination. It is even more so in scalping, where minuscule profits are expected to combine into sizable gains.

3. Calm: Scalpers need to remain calm in the face of market turmoil, especially those who want to trade directional, trending markets. Without emotional restraint, trading choices will be confused and arbitrary, and that is the least of what can be afforded by a committed scalper. Get used to losses and mistakes. Accustom yourself to mending the errors. And all should be well.

4. Regular Trade Sizes: This is always a necessity in trading, but even more so in scalping. Don’t make the mistake of doubling your trade sizes in response to a chance streak of wins. Don’t blur your vision by entering orders arbitrarily. Be disciplined, and ensure that your trades can be analyzed easily by standardizing your order sizes.

5. Concentration: Scalping can be an intense activity, and a good scalper needs to have a mind which can concentrate effectively on the task at hand for profit. If you’re scalper, make sure that the place and time period during which you’re active in the market is as peaceful and calm as possible. Have the kids sleep or play, let your spouse tend to her own duties. Ensure that you’re not distracted while scalping the forex market.

http://www.forextraders.com/forex-st...nclusions.html

Hello ForexCube,
Every your thread are very impressive and all of them I started to read like a big long interesting book ))

Thank you

Trade Example
EURUSD, M1, 2011 February 21

Looking at the chart above I couldn't see what indicators are on the chart itself. Can someone post a list of it. Thanks a million.

Seb

Legend