Box Scalping

Next to indicate the Box.

Set the Stop Loss

Place a Buy Stop

That's all what you have to do with the formula how to determine a "Fulfilled Box"

Excellent thread ForexCube! Very interesting... thanks for sharing!

Have you been trading this method yet? What has your success ratio been like? Obviously in a trending market this would work well?

Buy Stop Order


http://i.investopedia.com/inv/092009.../book_icon.jpg
What Does Buy Stop Order Mean?
An order to buy a security which is entered at a price above the current offering price. It is triggered when the market price touches or goes through the buy stop price.

http://i.investopedia.com/inv/092009...y/inv_icon.jpg
Investopedia explains Buy Stop Order
People using a buy stop hope to gain if momentum gains on a particular stock. If the price exceeds the price you have set, it will automatically trigger a market order

http://www.investopedia.com/terms/b/buystoporder.asp

Thank you r2997790!
I have trade this more in combination with the pivotal points and M5 at the Beginning 2008. M1 is in my practice since the beginning of the financial turmoils in the markets and I feel lucky about it.

When a trend is coming up often candles are getting longer and you have to trade faster. May be you could missed the first fulfilled box. If so go in one Grid Stair later then at this strategy.

The ratio of success depends at my Risk-Management. Near the Pivotal Points I tend to enter in the market with higher lotsizes, so the Profit Data depends more of my Risk-Style with the Focus of the Capital Gain.

But why not counting the pips in the next days? Good idea!

Sideway market
When market runs sideway the candles are getting smaller. It's not the best time for BoxScalping, maybe with a tighter Grid-Band (e.g. M1,Grid-2 or Grid-3) for catching ~1-3 pips.
Fxcube

Be careful not to let hindsight bite you in the @ss

Just an observation.

I have make often the comment "if you scalp the whole day long, you could lose money!" Then again there is an estimating the effect of a market environment (e.g. Volatility, Momentum). The next weeks one aspect could be working out the most helpful market environment for make use of Scalping Strategies. Simple and efficient: I tend to make things so simple as possible. So I look at the bodies and the shadows of the candles and its gradient.
Fxcube

Hi orderphlow
The discussion could be where to place the fulfilled boxes in life trading. That's right!
We will keep an eye open for what is happening.
FXcube

How and where to place a Fulfilled Box?
Example for going Short.
EURUSD, M1, Grid 10

How To Place Orders With A Forex Broker
Posted: Sep 25, 2010

When you place orders with a forex broker, it is extremely important that you know how to place them appropriately. Orders should be placed according to how you are going to trade - that is, how you intend to enter and exit the market. Improper order placement can skew your entry and exit points. In this article, we'll cover some of the most common forex order types. (For the latest discussions about forex, check out the forums at TradersLaboratory.com)

Types of Orders:
Market Order
This is the most common type of order. A market order is used when you want to execute an order immediately at the market price, which is either the displayed bid or the ask price on your screen. You may use the market order to enter a new position (buy or sell) or to exit an existing position (buy or sell). (For more insight, see The Basics Of Order Entry and Understanding Order Execution.)

Stop Order
A stop order is an order that becomes a market order only once a specified price is reached. It can be used to enter a new position or to exit an existing one. A buy-stop order is an instruction to buy a currency pair at the market price once the market reaches your specified price or higher, which is higher than the current market price. A sell-stop order is an instruction to sell the currency pair at the market price once the market reaches your specified price or lower, which is lower than the current market price.

 

1. Stop orders are commonly used to enter a market when you trade breakouts.
   
   For example, suppose that USD/CHF is rallying toward a resistance level and, based on your analysis, you think that if it breaks above that resistance level, it will continue to advance higher. To trade this opinion, you can place a stop-buy order a few pips above the resistance level so that you can trade the potential upside breakout. If the price later reaches or surpasses your specified price, this will open your long position.
   
   An entry stop order can also be used if you want to trade a downside breakout. Place a stop-sell order a few pips below the support level so that when the price reaches your specified price or goes below it, your short position will be opened.
2. Stop orders are used to limit your losses.
   
   Everyone has losses from time to time, but what really affects the bottom line is the size of your losses. Before you even enter a trade, you should already have an idea of where you are going to exit your position should the market turn against it. One of the most effective ways of limiting your losses is through a predetermined stop order, which is commonly referred to as a stop-loss.
   
   If you have a long position on, say the USD/CHF, you will want to the pair to rise in value. In order to avoid the possibility of chalking up uncontrolled losses, you can place a stop-sell order at a certain price so that your position will automatically be closed out when that price is reached.
   
   A short position will have a stop-buy order instead.
3. Stop orders can be used to protect profits.
   
   Once your trade becomes profitable, you may shift your stop-loss order in the profitable direction so as to protect some of your profit. For a long position that has become very profitable, you may move your stop-sell order from the loss to the profit zone to safeguard against the chance of realizing a loss in case your trade does not reach your specified profit objective, and the market turns against your trade. Similarly, for a short position that has become very profitable, you may move your stop-buy order from loss to the profit zone in order to protect your gain.
   
   (To read more about setting stops, see Stop Hunting With The Big Players.)

Limit Order
A limit order is placed when you are only willing to enter a new position or to exit a current position at a specific price or better. The order will only be filled if the market trades at that price or better. A limit-buy order is an instruction to buy the currency pair at the market price once the market reaches your specified price or lower, and is lower than the current market price. A limit-sell order is an instruction to sell the currency pair at the market price once the market reaches your specified price or higher, and it is higher than the current market price.

 

1. Limit orders are commonly used to enter a market when you fade breakouts.
   
   You fade a breakout when you don't expect the currency price to break successfully past a resistance or a support level. In other words, you expect that the currency price will bounce off the resistance to go lower, or bounce off the support to go higher.
   
   For example, suppose that based on your analysis of the market, you think that USD/CHF's current rally move is unlikely to break past a resistance successfully. Therefore, you think that it would be a good opportunity to short when USD/CHF rallies up to near that resistance. You can then place a limit-sell order a few pips below that resistance level so that your short order will be filled when the market moves up to that specified price or higher.
   
   Besides using the limit order to go short near a resistance, you can also use this order to go long near a support level. For instance, if you think that there is a high probability that USD/CHF's current decline will pause and reverse near a particular support level, you may want to take the opportunity to long when USD/CHF declines to near that support. In this case, you can place a limit-buy order a few pips above that support level so that your long order will be filled when the market moves down to that specified price or lower.
2. Limit orders are used to set your profit objective.
   
   Before placing your trade, you should already have an idea of where you want to take profits should the trade go your way. A limit order allows you to exit the market at your pre-set profit objective. If you long a currency pair, you will use the limit-sell order to place your profit objective. If you go short, the limit-buy order should be used to place your profit objective. Note that these orders will only accept prices in the profitable zone.

Execute the Correct Orders
Having a firm understanding of the different types of orders will enable you to use the right tools to achieve your intentions - how you want to enter the market (trade or fade), and how you are going to exit the market (profit and loss). While there may be other types of orders, market, stop and limit orders are the most common of them all. Be comfortable using them because improper execution of orders can cost you money.

To read more, see The Stop-Loss Order: Make Sure Your Use It, A Logical Method Of Stop Placement and Trailing-Stop Techniques.

by Grace Cheng

Read more: http://www.investopedia.com/articles...#ixzz1UMmYWYuK

This indicator could help determine the change in M1

http://codebase.mql4.com/5599
Attached Thumbnailshttp://www.forexfactory.com/attachme...1&d=1312742208
Attached Fileshttp://www.forexfactory.com/images/attach/ex4.gifGG-TrendBar.ex4 (6.0 KB, 2 views)

http://www.forexfactory.com/images/m...ading_dark.gif

It's nice of you to show that all BUT the problem still remains (and that could be the rating only 4 stars): WHERE do you draw the boxes ?

Of course there "possible" turning points but there are moves where market fakes a lot (like last week sometimes).

Even worser: Imagine a SL of 10 Pips, go in because market shows a possible reversal and the market does that 4 times. (happenes at least 1-2 times per month).

So your down 40 pips. Besides, another problem is the TP. That's the biggest problem I think. Of course you can scale out/trailing out but LOOK AT LAST WEEK. Often you get trailed out a lot because of fast market movement and then continuation.

The Idea of the system is nice and yes you can earn money with it but you have to be a real pro ,- no an ace of reading marketconditions like PA and so on but then you don't need the boxes no anymore.

It's a nice gimmick, yes, because a "box" give you some easy looking trend window, SL and when to enter but it's worthless unless you are not able to identify trend reversals and this can only do 5% of the readers here I guess, excluding me.

Just a thought ! Thanks anyway,
Jack

Another thing: If "box" drawing aiming for trend reversal than there's a very easy tactic:

Just enter the market in the next candle (1 minute/5 minute) when this candle moves against the current trend a least 10 pips and set the SL on the high/low of the "reverse"candle (e.g. 12 SL + 1 spread = 13).

Under normal conditions you get stopped out 1 or 2 times, than market reverse for 30 pips may be if you entered. But again: where to set TP, where a trailing stop and so on...position management is the key, not the entry.
these are the essential things and this can only know people who are real pros. I know some stuff about that but it's so little that I cannot be profitable trading this way.

Look at the chart then you see what I mean
Made a little mistake: not -10 pips on the first 3 positions but -5 to -6 pips. Anyway I think the problem I mentioned is clear .

If you please, it's best when we talk about the correct version. Isn't it JackintheBox?
Enter Short Order
Profit: +60 pips by Option B (e.g. 3 x 0.1 Lot size) - and with 1 x Short Order: +30 Pips (minus the Spread).
FXcube

not too sure what this is but hey good luck to you all......

i think it is similar to what zebulan came up with albeit on a smaller time frame.

Follow-up

...and for Enter Long you have to trade this way

See #6


Example
EURUSD, M1, Box Scalping with the help of the CCI Divergence.

...so also at M5 by switching between the Timeframes. Why not?

Feel free to adapt the Box-Scalping-System at your personality.