In this thread I shall demonstrate the strategy for scalping the EUR/USD around the European opening. Price can move at around 7 am or 8 am for a good scalp.
For this strategy, the first thing we do is identify the major trend on a 30 m time frame. When the trend is up then we will scalp with a long position. If the trend is down then we will scalp with a short position. So, the rules of the strategy are:
1. Only ever scalp in the direction of the major trend.
2. Use a 5 or 10 M chart with a daily pivot and support/resistance levels for the trade. (See attached examples).
3. For a long position make sure that price is already above the daily pivot, and for short trades price is below the daily pivot.
4. For long trades be sure that the 20 ma (green) and 50 ma (blue) are above the 100 ma (yellow), and for short trades the 20 ma (red) and 50 ma (orange) are below the 100 ma (yellow).
5. Price will usually move slightly in the direction of the trend at abvout 7 am (GMT).
6. Wait for it to pause or retrace a little before entering the trade at about 7:30. Set a stop at 20 and a target of 20 or 30 or 50. A 20 pip profit is the norm, but a strong move could realise 30 or even 50 on a good day.
7.Do NOT trade when a high impact 'news' item is scheduled to be released.
The set of charts below shows price action from the 7:30 pullback to its profit top.
For this strategy, the first thing we do is identify the major trend on a 30 m time frame. When the trend is up then we will scalp with a long position. If the trend is down then we will scalp with a short position. So, the rules of the strategy are:
1. Only ever scalp in the direction of the major trend.
2. Use a 5 or 10 M chart with a daily pivot and support/resistance levels for the trade. (See attached examples).
3. For a long position make sure that price is already above the daily pivot, and for short trades price is below the daily pivot.
4. For long trades be sure that the 20 ma (green) and 50 ma (blue) are above the 100 ma (yellow), and for short trades the 20 ma (red) and 50 ma (orange) are below the 100 ma (yellow).
5. Price will usually move slightly in the direction of the trend at abvout 7 am (GMT).
6. Wait for it to pause or retrace a little before entering the trade at about 7:30. Set a stop at 20 and a target of 20 or 30 or 50. A 20 pip profit is the norm, but a strong move could realise 30 or even 50 on a good day.
7.Do NOT trade when a high impact 'news' item is scheduled to be released.
The set of charts below shows price action from the 7:30 pullback to its profit top.
Tellboy