Sicko-Scalp-Machine

Best Forex Scalping Indicators Revealed June 30, 2010 by Kelvin
http://www.forexindicator.org/wp-con...sion.php?ids=4

Scalping the forex market has become a popular way of trading among traders. This is because it allows the trader to take profit fast by getting out of the market within minutes. Due to the short term trading involved, the entry and exit of your trading position can make a big difference. In order to be able to conduct effective scalping, you need the help of several forex scalping indicators that can help you create an edge over the market.
In this post, I will be sharing with you several forex scalping indicators that I use during my own scalping trade. These indicators perform different task to ensure you have a better winning probability. Do note that using these indicators does not 100% guarantee that you will make profit as trading is a game of probability.

Below are the forex scalping indicators to use

1) Parabolic SAR Indicator: The PSAR is a tool that can give you an entry or exit signal. What you need to look for is for the PSAR to flip to the side in your favour before you can enter a trade.
As for exit, you should exit your trade whenever you see the PSAR flipping to the side that is against your position.

http://www.forexindicator.org/wp-con...10/06/BUY1.png
BUY Signal



http://www.forexindicator.org/wp-con...0/06/SELL1.png
SELL Signal


2) Stochastic Indicator: To improve your trading accuracy, you can make use of the stochastic indicator to help you map out the current situation of the market. There is no point in you entering a long position when the market is already overbought and therefore this indicator can be used to help you prevent such low winning probability trade.
Whenever the stochastic hits the overbought or oversold zone and reverse, the price will usually retrace and this is the best time for you to scalp the movement. With the help of the stochastic, you will be able to know when the retracement is going to occur.

3) Pivot Point: There is nothing more important than support and resistance for a scalper. Whenever the price hits a support or resistance, there is a chance for it to be repelled and this is what a scalper is looking for.
Other than those previous highs and lows which can be used as a level of support and resistance, you can make use of the daily pivot point to help you identify major support and resistance. The reason why the pivot point is so powerful is because it is usually used by those commercial traders and thus has more significant than other levels.

http://www.forexindicator.org/wp-con...Repulsion1.png
Pivot Point Repulsion

When you see the price approaching the pivot levels, you should be ready to take a look at the stochastic and PSAR to look for entry. To find out more about forex scalping system, you can read one of my previous posts that talk about how to scalp the forex market.
The most important thing for a trader is to wait patiently for a confluence of events to occur before pulling the trigger. This can greatly increase your chance of winning and avoid unnecessary losing trade.

http://www.forexindicator.org/best-f...-revealed.html

http://www.forexindicator.org/

Forex CCI Indicator Explained
May 16, 2010 by Kelvin
http://www.forexindicator.org/wp-con...sion.php?ids=4
The CCI indicator is known as the Commodity Channel Index and this is an indicator that is developed by Donald Lambert.
I will not bother you with the calculation of this indicator because your trading platform can automatically help you to calculate and plot out the indicator. What I am going to share with you today is what exactly this indicator can do for you and how you can integrate it to your trading plan.
For this CCI indicator, it will come with +100 and -100 levels. Most of the time, this indicator will move in between the +100 and -100 levels and it will exceed the levels for about 20 to 25% of the time.


Here is what you can use the CCI for:

1) As a buy and sell signal – Whenever you see the CCI moving above the +100 level, you are in fact in a period of strong uptrend and this is the time you can enter a LONG trade. Once the CCI moves back to the +100 level, you should then exit your trade.
However when you see the CCI moving below the -100 level, you are in a strong downtrend period and you can enter a SHORT trade. Similar to the above LONG trade, you should exit your trade once the CCI move up to the -100 level.


http://www.forexindicator.org/wp-con...rong-Trend.png
Buy & Sell Signal



From the picture above, you can see that the market move higher when CCI reaches the +100 level and vice verse.

2) As a reversal identifier – There are basically 3 ways you can make use of the CCI indicator to identify reversal and I am going to go through one by one in detail.

a) Trend Line Break: You can make use of the CCI to draw trend line and once you see the trend line being breached, you are going to see the market moving in the direction of the breakout.


http://www.forexindicator.org/wp-con.../TrendLine.png
Trend Line Break


b) CCI Divergence: Similar to MACD divergence, the CCI also produces positive and negative divergences. When you see the market making higher highs while the CCI making lower highs, you are in fact seeing a negative divergence. This is usually a signal that the market is going to move down but the time it takes for the down move may vary and you should not assume that it is coming in the next few candles.


http://www.forexindicator.org/wp-con...Divergence.png
Positive Divergence

http://www.forexindicator.org/forex-...explained.html

Forex CCI Indicator Explained
continuation

If you see the price making lower lows while the CCI making higher lows, it is a sign of positive divergence and the market is going to produce an upward movement soon. Similarly, you should not assume that it is going to happen very soon.

http://www.forexindicator.org/wp-con...Divergence.png
Negative Divergence

c) Overbought & Oversold: Similar to the Stochastic and the Relative Strength Index, the CCI can be used as an oscillator. When you see this indicator moving above the +200 level, you are in an overbought zone and you can place a SHORT trade when you see the CCI crossing below the +100 level.
When you see the indicator moving below the -200 level, you are in an oversold zone and you can then place a LONG trade once you see the indicator moving above the -100 level.

http://www.forexindicator.org/wp-con...Overbought.png
Overbought & Oversold

However there is nothing that works 100% of the time and below is one such example

http://www.forexindicator.org/wp-con...ghtdunwork.png
Example

The CCI indicator has been a great help to my trading so far and it can be integrated into various type of trading methods due to its multi-features. You can try this indicator out in your trading chart and see how it performs for you .

http://www.forexindicator.org/forex-...explained.html

___
See further the CCI-Index with a Download Box:
http://forex-indicators.net/momentum-indicators/cci

Thank you! That was the kind of answer I expected/hoped for, as my hypothesis is that this game is about integrating perception/instinct and cognition/indicators. And the reason I pestered you with this question is for the benefit of the beginner/developing traders who may be following the thread, and who may mistakenly believe that the reason for your impressive account statements is to be found in the indicators.

Thank you for your patience and answer

So if we were to recommend an approach for the beginner, I suppose you would agree with me that it would be a couple of MAs and daily pivots?

Thank you medici that you have point it out in round terms!

My sentiments exactly!

You're wellcome!

Best regards
FXcube

My Forex Scalping Revealed
December 24, 2009 by Kelvin

Forex scalping has become more and more popular among new traders. This is because forex scalping tactics allows the trader to see fast profit sometime within less than 20 minutes of trading and this is what entices some traders. Although scalping the forex market can see quick profit, it can also amount to quick loss if you do not execute it with proper analysis. Due to the scalping nature of your trade as a scalper, you can enter several trades within 1 hour and it can amount to a sizeable loss if you have consecutive loss trades.

Here are the forex scalping analysis you can do:

1) Mark out the important support and resistance levels, typical support and resistance levels are

 

1. Fibonacci 0.618, 0.5. 0.328
2. Pivot Point S3, S2, S1, PP, R1, R2, R3
3. Previous high will be your current resistance and previous low will be your current support.

2) Use oscillating indicators like stochastic or RSI or even MACD can help you to time your entry more accurately.

 

1. If you are looking to SELL, you should try your best to wait for the oscillating indicator to go overbought and start to curve down.
2. If you are looking for BUY, you should try your best to wait for the oscillating indicator to go oversold and start to curve up.

Besides timing your entry, these oscillating indicators can also help you to time your exit.

 

1. If you go SHORT, you should be looking to exit your trade when the oscillating indicator reaches the oversold zone.
2. If you go LONG, you should be looking to exit your trade when the oscillating indicator reaches the overbought zone.

3) Confluence of Events – In trading, we should also wait for confluence of events to happen before we enter or exit a trade. Confluence of events refers to the situation where two or more conditions to enter a trade or exit a trade happen together. This can gives you more confident and assurance in the trade.

 

1. The best long entry point is when the price hits the support level with the oscillating indicator reaching the oversold zone and start to curve up.

http://www.forexindicator.org/wp-con...lping-long.png

1. The best short entry point is when the price hits the resistance level with the oscillating indicator reaching the overbought zone and start to curve down.

http://www.forexindicator.org/wp-con...-scalping1.png

Above are the forex scalping system I have been using. Although some of you may be thinking that it is a simple strategy and may even wonder if it can make you money, you need to know that the most profitable strategy are those that are easy and simple to execute.
I do not encourage you to start trading this strategy immediately and I actually hope that you have the habit to try out new strategy on DEMO account and master the way to execute it before trading LIVE with it.
For more information on forex indicator, you can browse around this blog.

http://www.forexindicator.org/my-for...-revealed.html

Hi medici

May I take the liberty of adding a clue at p.1, #1 "Clarification" to this comment?

Kindest regards
FXcube

Sphere reference

Yes indeed! ...or just a few other aspects like #67

Kindest regards
FXcube

Yes, of course, and I would be happy if you do as our main responsibility here on FF as experienced traders is towards the beginners/developing traders.

It is easy for the beginner to believe that it's about the indicators or systems. And after some disappointment with that they learn the slogan "trade what you see not what you think", which is just as misguided.

The key to becoming a winner is the integration of perception and cognition - a challenge that it takes years to master - and I believe people should be told so they don't spend time and money on the wrong things.

My Forex Candlestick Tutorial
January 22, 2010 by Kelvin

If you are trading using the forex candlesticks chart, you definitely need to know how to read forex candlesticks as well as identifying important candlestick patterns. Therefore I am writing this post to do a quick tutorial on forex candlestick so that you know what you are seeing on the chart.

Here are some important reversal candlestick patterns you must know:

First of all, you need to know that reversal candlestick patterns are actually signaling to you that there will be a change in trend. This gives you a chance to anticipate the reversal movement before it actually happens and this will definitely make you money if you are able to enter a trade before the movement.

1) Railway Track/Tweezers Formation: The railway track pattern is one of the best reversal candlestick patterns you can get in a chart. It actually signifies that the traders realise that they got into the wrong position and then quickly get out of their position and then get into the opposite position causing the formation of the railway track. This is usually a strong indication of a reversal.

http://www.forexindicator.org/wp-con...ilwayTrack.png
RailwayTrack/Tweezer

2) Morning Star/Evening Star: This is a formation that is made of one long up candle follow by a doji and then a long down candle for the evening star and vice verse for the morning star. This is a pattern that is somehow similar to the railway track pattern but with a doji in between.

http://www.forexindicator.org/wp-con...orningStar.png
Morning Star

3) Hammer/Inverted Hammer: This is a pattern where there is a long wick with a short body. This usually shows that there are traders who push the price in a certain direction and then hitting some support and resistance levels causing the price to retreat with a short body. Most of the time, this signifies a good reversal is coming.

http://www.forexindicator.org/wp-con.../01/hammar.png
Hammer

http://www.forexindicator.org/my-for...-tutorial.html

Follow-up

4) Head & Shoulder Pattern: This is another forex candlestick patterns that is reversal in nature. How this looks like is that it has one lower left shoulder follow by a higher high indicating a head and then a lower high right shoulder. You can enter a trade when the neckline is breached.


http://www.forexindicator.org/wp-con...er-300x166.png
head and shoulder


5) Double Tops/Double Bottoms: This is a pattern whereby you will see a top pattern which eventually get resisted and then move down follow by another up movement that gets resisted again at the same price forming a double top. The shape of double top looks like M and double bottom looks like a W and this is also a good indication of a reversal.


http://www.forexindicator.org/wp-con...op-300x220.png
double top


6) 1-2-3 Top/Bottom: The 123 top is formed when the price move up and then retrace back to a certain level and then move up again trying to overcome the resistance that is formed by the previous high but this time it did not reach the previous high point and then retrace back down again. This usually signifies a lack of momentum in an uptrend and the price will most likely reverse.


http://www.forexindicator.org/wp-con...op-231x300.png
123 top


These are the 6 best reversal candlestick patterns you can get in a trade. Do note that these reversal candlestick patterns only work when the price is in a trend and not moving sideways.
Studying the forex candlestick is very important for your trading. Some traders may think that learning forex candlestick patterns is very basic and they usually do not want to spend time on them. However knowing them can help you to identify a reversal before it occurs.

http://www.forexindicator.org/my-for...-tutorial.html

Sure, but the danger for the beginner is that the oscillator changes direction before momentum does.

In my view, oscillators only make sense as part of a broader framework.

But now I should shut up as this is your thread to manage....

Thanks again for sharing

see #54, please

...and this is the result a couple of hours later

The pivot points are actually levels of strong support and resistance that are used by the commercial traders.

ADX: -DI crosses +DI from below & MACD the Zero-Line.

Forex Pivot Point Trading Tutorial
May 24, 2010 by Kelvin

It is pretty hard to find a book that talks entirely on pivot points. However this does not mean that pivot point trading is not important at all. In fact, the pivot point trading strategy is commonly used by those “big dogs” commercial traders and it is something that most retail traders miss out on.

So what exactly are pivot points?
The pivot points are actually levels of strong support and resistance that are used by the commercial traders. When calculating these levels, you need to know the previous day open, high, low and close values. Do not worry as you do not need to memorize the formula to calculate these levels, you can simply make use of those free pivot calculator that is available online and then input the values you have collected from your chart and it will automatically calculate the levels for you. Sometime you can even plot these levels easily using your trading platform.

Uses of Pivot Points
Basically I use the pivot points for a few purposes.

1) As an Entry levels: Since these points are strong level of support and resistance, I usually use them to predict future movement.
This is how you can use these levels for Entry
If you are in an uptrend and you see the price breaking above a pivot level, you can enter a LONG position and then place your stop loss below the pivot level.

Or

If you are in an uptrend and you see the price repelled by the pivot level, you can enter a SHORT position and then place your stop loss above the pivot level.

For this method to work better, you can add some indicators like the MACD, CCI or RSI to help you with your entry decision.

2) As an Exit levels: Similarly you can also use these levels for planning your exit.
Now that you know how to enter a trade with the pivot points, I will now show you how I use these levels to exit my trade.
If I enter a LONG trade after the price break above a pivot level, I will usually place my target profit 10 to 15 pips below the next higher pivot level.
However if I enter a SHORT position after seeing the price being repelled by the pivot, I will exit my trade once the price move down to half the pivot length.

Forex Pivot Point Trading Example
In order to help you better understand how to make use of the pivot points in your trading, I have prepared an example to show you how you can integrate these levels into your trading.
In this example, I will be doing a swing trading which happens during the London Open session.
First of all, I will plot a 200 EMA to check the trend of the market. From the chart below, you can see that the trend is UP for this chart.

http://www.forexindicator.org/wp-con...ple-Part-1.png
Pivot Trading Example

Next, I will plot the pivot levels using my platform and then draw the necessary trend line. As you can see from the diagram below, the price is moving toward the R1 level and since I am looking for a swing, I will look to place a SHORT trade.

http://www.forexindicator.org/wp-con...ple-Part-2.png
Pivot Trading Example

http://www.forexindicator.org/wp-con...ple-Part-3.png
Pivot Trading Example

At 0015hr, you can see the formation of a hammer which is a sign of reversal. At the same time, the price seems to be repelled by the R1 resistance level.

At 0145hr, the price has broken below the trend line and I will enter a SHORT trade at that candle. As this is a counter trend trade, I will place my target profit at half the length of the pivot levels which is indicated by the black line on the chart and I will place my stop loss 20 pips above the entry position.

http://www.forexindicator.org/wp-con...ng-Example.png
Pivot Trading Example

Although the price continues to move down after our targeted profit for this case, we should still stick to our exit strategy every time we trade this kind of strategy as not all trade will unfold the same way as this example.

http://www.forexindicator.org/forex-...-tutorial.html

EURUSD, H1, 2011 February 2011
EURUSD, M5, 2011 February 2011

Waiting for a breakout?

EURUSD, H4, 2011 February 23

Global View
Market Price has reached the Pivotal Point DR1 ~1.3730

H4 is forming a divergence.

Could be that the market price will pullback (more down).

Scalping
So switch M1 and M5 and make at this level the trades.

EURUSD, M5, 2011 February 23

M5 are forming some indifferent candles.

So wait till the direction are getting clearer.

If you trade only with the indicators you have to go short but these indifferent candles sound a nore of caution.

So it could be smarter to wait!

EURUSD, M1, 2011 February 23

If you have make an enter short around 1.3725 (DR1 1.3730) then it's time to go out here at 1.3715

Profit: + 10 pips

EURUSD, M5, 2011 February 23
GBPJPY, M1, 2011 February 23

...and if taking a look what GBPJPY makes (M1) it goes a little down just now.