How does one scalp the eurusd effectively?

could you explain some of your modifications regarding scalping the eur,us. effectively.... i have been working on this system for sometime now.

well first i look trend of EURUSD of 5 min time frame if trend is short wait for two red candle close then i execute my trade on third candle with 20 SL 10 TP. once i got 20 pips leave the computer....

If only it was that simple.

Shouldn't it be conversely? Surely that you've got very good effectiveness. Good risk to reward ratio is my best rule. If you've got good MM, then you can open trades randomly.

Try to trade on supports or resistances, but wait for reaction. If you won't, then the same thing is open trade in any other place. Or look for pinbars or engolfings on M5. This is good idea too.

Answer:

Learn where to draw a line in the sand and simply trade it!

Successful trading is just that simple.

For Forex trading I watch (and track) the order flow activity in the CME FX futures Euro (6E) instrument, and then I will enter trades in either the futures or in Forex. I have been running with this approach for several months now and I really like it. This is a very unique style that I have developed but I am an order flow based trader (as my edge).

Moving averages are very good too. Of course I don't think of MA crosses, it works hardly ever.

it seems good but the reward ratio is bad why 20sl and 10tp it sounds bad

1. check important data release time

2. Record the previous day OHLC

3. Identify candlestick studies on the daily charts

4. Identify major trendlines, support and resistance on the daily charts

5. Determine the market sentiments (Bullish or Bearish?) for the day.

7. Go to hourly charts and determine the support and resistance

8. Lookout for candlestick formations on hourly basis.

* For reversal candlestick signal;
- Wait for better signal or staggered your lots
- Enter only near support or resistance level

9. Adjust your reward risk ratio

I hope you have benefited from my summary above....

'Always be fading'. Take a profit quickly and get out faster if it doesn't materialise. Watch pivots and volume ranges (use cme fx futures data). Take many trades/day and just keep hammering away. Trade 30k min. Spend hours and hours watching your market and get a feel for it. Possibly only trade with momentum bias (although moot point). Don't be greedy, be consistant. Concentrate on volume at price and key levels rather than candle stick patterns and indicators (which fail most of the time). Get to trust your guts. If knocked down , keep trading. Don't ever let a wee loss turn into a big bastard loss. Good luck.

I believe this to be very true.

Take time looking at how prices react around support and resistance in the 5min chart.

You will be amazed how effective it can be just trading off fairly significant support and resistance on 5min charts. Almost always, when they are approached the FIRST time around there will be a reaction. Why is this so? I believe when support and resistance is approached, people are taking profits, knowing there could be a bounce, and people are entering anticipating the bounce.

Also, when support and resistance is broken fairly significantly, look for the immediate pullback to the support and resistance level and enter in the same direction of the break. This I believe is because of quick profit taking and reentering.

All this often happens within a single candle stick so you need to be quick and trade fairly aggressively. Also look to trade in the same direction as the sentiment of the daily chart.

With stops twice the size of your profit target it is critical you have a high win % and in order to do this it's going to be essential to identify a high probability setup. Once you've got this you are part way there. As others mentioned, if you tailor this with effective money management you should be on your way.

for scalping with 3pips take profit, what should the stop loss be set at?

Better to take a second entry in original direction rather than use stops. This way you are playing the volatility and it isn't playing you. Better to stick with momentum/ trend direction if doing this.