Scalping the pip out of it

I did not take any of these trades. I was looking for this short, but it came when I was away from my computer. It is important to see how price can use an EMA as a moving S/R, especially in a consolidation range. I am still short on the EY from the beginning of the week and this is a great scalping opportunity. It is in a consolidation range, but it is also in the direction of the trend. This means you would have to be quick about your exits but can get in with a little more confidence. The consolidation will fizzle until institutional volume reenters the market. Until the next volume session you can expect to pick tops and bottoms in that range.

If price moves back into the 200 EMA and the stochs are both overbought I would consider another short scalp here!

Please feel free to ask me any questions about my method!

Looks like we never got our chance to enter with the right parameters, but it does illustrate that looking for a short scalp in a consolidating market in a downtrend is a good look.

Still holding short positions on the EY for the moment. Price has continued to collapse making it easy to scalp in the direction of the trend. Price is coming up on a daily trend line from previous swing lows. I am abandoning my short bias as we come closer to the trend line. Price could easily shoot back up and test the upper threshold of the pennant. Price could also break low and put in a new longer timeframe trend. As of right now I am going to cover my positions that I have been holding.

Had a great week last week. Make over 500 pips by holding short EUR/JPY from the beginning of the week, while finding opportunities to hedge against the position with the GBP/JPY and the USD/CAD, and adding to my short positions with additional short EUR/JPY positions.

The EUR/JPY is at a crossroads with a triangle forming on the daily chart. I will watch it but I am staying away until we have break of a trendline with some clear direction.

I just pulled up my charts and the very first thing I do is go through all of the daily charts to see what is happening. A couple of charts that really caught my eye were the AUD/USD and the USD/CAD. Because they are opposite US dollar pairs they can be expected to move fairly proportional yet inverted.

There is a head and shoulders bottom forming with an oversold state on the stochastic oscillator and the RSI. Here is a chart to show you what i am looking at. I will be looking to go long on this pair if the opportunity presents itself. If I can find the right setups, I can be wrong about the direction of the daily trend and still be profitable. If I can get in on the turnaround I will hold a long AUD position while using other inverted currencies to hedge against the position on the retracements.

Thanks for watching.
Put it in the bank

This is the daily chart of the USD/CAD. It is overbought at the moment, but it is also showing some indecision. There seemed to be a evening star forming on the chart then price shot back up. This type of indecision usually means some kind of fundamental uncertainty. I would like to see price shoot back up and test some higher levels before it comes down. Because these two currencies are inverted, I will be watching both to get a perspective on when price will reverse.


Checking in on fundamental announcements to see if there are any market movers, shows that the Aussie has a red announcement coming out today. If that number comes out to strengthen the AUD/USD, then it could very well be the pivotal moment for a turn around. Lets see how it plays out

Market flow as changed on the 4 hour down. This is an interesting moment in the market. At first glance I would like to get long on this cross with so many positive indicators. BTW the Aussie building approval numbers were great so looks like AUD/USD could go up for a little while.

At the same time, there will be a lot of institutional covering so we could see a short here as investors are exiting or reversing positions. I may be enticed to get short here and ride it down for a better position to hold long.

I will wait until price engages the 200 EMA before jumping the gun short. All of the stochastics are overbought and price is hitting a previous support turned resistance. If I take any trades I will post them.

So I have a confession to make. I took a short trade on the EUR/JPY. I know I said I was not going to but it set up and I got in. Here is the trade.

Got a little push and considering where to go from here. Stochs are still overbought on the 15 and 1 hour, oversold on the 5. If I hold it, I will have to wait for 5 min stochs to reset. Hard to say in a market that is not trending. I may just get out with some pips while I have them.

We have a daily chart of the EUR/USD meeting with several repeat rejections at this key level. As we dial it in to lower timeframes we may be able to see a bounce in price.

All of the 4 hour 1 hour indicators seem to warrant a long trade consideration. If price looks good on the 5 and 15 minute charts we may have an acceptable long entry. More on that as it develops.

TTotally have NO TRADE here. But we are not giving up on the idea. Maybe wait until the lower timeframes reset and reconsider the position. This is how to set up your trade bias and wait to get in at the right moment.

AUD/USD update. We have seen market-flow change the higher timeframes and looking for an opportunity to enter. It is difficult if you cannot sit by the computer all day, but we may have a setup forming for a long opportunity. We want to get a buy long at a good price so we can ride a longer timeframe move. Maybe a week long move or longer.

Scalping into a position trade is by far the best way to get into incredibly profitable positions with the least risk. This is what is setting up now.

I am in on the AUD/USD. I took a very small position because it is not the best entry. If price goes against me I will have a few opportunities to average down with acceptable margin. The Aussie has had some good fundamental economic news and may not need the technical validation to go up. This way I am confident either way price actions goes. I will buy another position at 8965 if need be and possibly two at 8940. Other than that I will ride it up and buy on the dips. Lets see what happens.

Good luck

Did not have to average down. I may have like to but I am sticking to my game plan. Price caught up with me and I intend to ride it up for a ways. I still have a long bias but I will update my stops depending on where price goes from here. I dont mind if price comes back down into negative because I am strong my long bias for the week.

Put it in the bank!

I am short the USD/CAD. Double top with some good resistance on the higher timeframes. I think that this could be the moment to get in short for me. I could also see it putting in come higher highs to shake off any tight stops before going south. 5 and 15 are looking pretty good and the currency has put in a pretty good run up.

Here is the trade I took on the USD/CAD. Price has turned against my position. I am still interested in the trade. I thought that it may take a new high before price comes down. I am monitoring the trade and I will decide whether it is acceptable to average down if price goes higher.

This is the chart of the AUD/USD. Price reversed on very poor fundamental numbers coming out. Then reversed again on interest rate statement. I am still long and have moved my stop up to a tighter position. I am still long bias and will look to buy on the dips.

This is the CAD. Price collapsed once before only to shoot back up. We will have to see if this is an actual descent or just another order covering for institutional investors. The chart looks great to me. I will be selling on the rallies