US Dollar Poised to Rally in the New YearFundamental Forecast for the US Dollar: Bullish
Saturday, January 1, 2011
US Dollar Poised to Rally in the New Year
US Dollar Poised to Rally in the New YearFundamental Forecast for the US Dollar: Bullish
Obama's New Year's resolution? Fix the economy
By Jeff Mason
HONOLULU, Jan 1 (Reuters) - President Barack Obama has set his New Year's resolution high for 2011: repair the struggling U.S. economy.
In his weekly radio and Internet address on Saturday, the vacationing president said recent data showed the economic recovery was gaining traction even as millions of Americans are still out of work.
'Our most important task now is to keep that recovery going,' Obama said. 'As president, that's my commitment to you: to do everything I can to make sure our economy is growing, creating jobs, and strengthening our middle class. That's my resolution for the coming year.'
Unemployment of nearly 10 percent and dissatisfaction with Obama's efforts to spur an economic recovery from the worst recession in decades helped fuel Republican victories in congressional elections in November.
Republicans will control the House of Representatives next year and Democrats will have a smaller majority in the Senate, a new political reality that will affect Obama's ability to push through his policy priorities.
The president, who forged a deal with Republicans to extend Bush-era tax cuts in the waning days of 2010, sought to strike a bipartisan note in his address.
'In a few days, a new Congress will form, with one house controlled by Democrats, and one house controlled by Republicans -- who now have a shared responsibility to move this country forward,' he said.
'I'm willing to work with anyone of either party who's got a good idea and the commitment to see it through.'
One area where Democrats and Republicans will be challenged to work together is on deficit and debt reduction.
Senator-elect Kelly Ayotte, a Republican from New Hampshire, said her party was ready to spearhead that effort.
'Congress must get serious about meaningful debt reduction,' she said in the weekly Republican address.
'This isn't a Republican problem or a Democrat problem -- it's an American problem that will require tough decision-making from both parties. Republicans are ready to lead that fight.'
(Editing by Chris Wilson) Keywords: OBAMA ECONOMY/
कोप्य्रिघ्त
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redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Friday, December 31, 2010
Forex Ebooks, Systems & Strategies
 | Bird Watching in Lion Country - Retail Forex Trading Explained
When I wrote BWILC I knew it would be great, revolutionary and eye popping. What I didn't expect in my wildest fantasies was that individual readers would compare it favourably with Reminiscences of a Stock Operator and Trading for a Living. Read more - DrForex (Dirk du Toit) |
 | Black Dog Trading System Introducing a new forex trading system from seasoned and professional trader, Dave Atkinson. This system uses clearly defined entry and exit rules and comes with full customer support. Get your hands on a copy of Dave Atkinson's, "Black Dog Trading System" receiving rave reviews from customers. Get the Mini-trend Finder - a second system absolutely free with your purchase of the Black Dog Trading System! Read more |
 | Conversations with Forex Market Masters by Dr. Darius Swierk World-famous traders, teachers, authors and mentors including Joe Ross (over 50 years of market experience), Dr. Jeff Wilde (18 years of experience, teacher and mentor of thousands of traders worldwide), Don Steinitz, Phil Newton, Todd Judkins and five other forex market masters talk about the sources of their knowledge. Read it, follow it and watch your trading change! Read more |
 | Forex Profits Forex Profits is a simple and straight forward mechanical strategy for trading the forex market using MACD and some clear rules for entering and exiting a trade. Written by Dr. Jeff Wilde, a trader with 15 years experience, Forex Profits could get you up and trading quickly in the forex market. Comes with a 60 day money-back guarantee. Read More See also Ultimate Forex System by Jeff Wilde. |
 | Forex Trading Strategy Learn how to trade EUR/USD, USD/CAD, GBP/USD or any other major currency pair by mastering a system that combines top level mathematics with the fundamental principles of human behaviour. Comes with a 60 day money-back guarantee. Read More |
 |  The Art of Forex Portfolio Two currency trading systems experts with a combined 32 years of experience in the investment and hedge fund industries share their knowledge on how to construct a forex portfolio. Read More |
Saturday, May 17, 2008
Forex Scalping Systems
Forex scalping has gained high popularity nowadays. We welcome you to explore our free and steady growing collection of Forex scalping strategies and ideas!
Yes, true scalping involves risks as well as any other type of trading.
But if done correctly Forex scalping provides an additional degree of risk management as a result of holding trading positions for a very short period of time as well as constant monitoring of the price and collecting quick profits as they appear.
Please, do not forget to read our disclaimer policy. In short, Forex scalping systems you find below if used will assume trader's own risk and full responsibility.
Scalping Forex is fun. Learn it and trade profitably!
Best of luck in scalping the Forex!
Scalping ideas (ADX and Bollinger bands)
Scalping with the help of ADX:
To scalp effectively with minimum time spent, Forex scalpers need to know when the market is trending well and when there is nothing to wait for.
To find out about the strength of the market trend use ADX (Average Directional Index) indicator.
ADX does not show the direction of a current trend, it only shows the strength of the trend. Reading below 20 indicates a weak trend, reading just above 20 – gaining new strength trend and reading above 40 – very strong trend.
It is that simple – scalping is weak when the market is weak, when ADX deeps below 20 – opt for other life activities, do not sit and waste your time in Forex.
Scalping with the help of Bollinger bands:
Bollinger bands can help determine trends and especially upcoming trend reversals.
When price moves outside the Bollinger bands it is suggests a continuation of the current trend, while bottoms and tops made outside the Bollinger bands change to bottoms and tops made later inside the Bollinger bands suggest upcoming trend reversal.
Scalping system #1 (Economic news releases)
Look for the important news to be released. Choose the most influential ones that are expected to shake the market well. Once got news (last can be found in any Forex economic calendar) find out which currency pair is going to be affected.
Now, 15 minutes before the data is released place buy/sell stop orders on both sides 15 pips away from the current price. Half an hour prior to the big news Forex market usually flats out – no significant trading is done, currency is often “stuck” in a small tight range.
When important news is released, the currency will move easily, producing large pip movements in either direction. Using this scalping strategy, traders will be able to get in and out of the trade in seconds at almost zero risk.
After studying for a while a particular currency pair and its reaction to the news, traders can predict direction of price spikes and the length of the move in pips to set entries and profit targets more accurately
Scalping system #2 (Morning breakouts)
The closer time gets to 8:00 EST in the morning the less movements can be seen on the chart. It is a well known fact that once the Forex market “hears morning bell” at 8:00 am it is going to really move – stretching well doing morning exercises :).
What is needed from traders? Only to place 2 orders: above and below the last candle’s high and low at 8:00 am EST and join morning stretching having your 5 pips safely.
This is a scalpers’ breakout method, for which waiting long is a losing of precious time. If you want to join big traders your buy/sell orders must be above and below the price range created from midnight to 8:00am EST.
Currency pairs: EUR/USD, GBP/USD.
http://forex-strategies-revealed.com/
Scalping system #3 (2 SARs to go)
Be prepared to watch the price constantly. Monitoring the price is not an easy job.
Trade the most active hours – London and New York.
EUR/USD 5 min
GBP/USD 5 min
(optionally may also trade AUD/USD)
SAR (0.01, 0.1) – on the chart
SMA 8 – on the chart
MACD (5, 8, 9) + SAR (0.01, 0.1) on this MACD
Forex scalping with SAR
SAR defines whether we go short or long. We will take only one type of trades according with SAR signals.
Whichever SAR gives earlier signal – we take it. (Sometimes it can be “chart-SAR”, sometime “macd-SAR”)...
Trading Rules:
When we talk about “trend change” we mean small tiny trends that are actual for us scalpers on 5 minute chart. We do not want to know what is going on 15 min, hourly or even more so daily chart.
With the first SAR dot appearing on the opposite side (the trend has changed) – open one “trial” position Stop loss -12 (spread not included), Take profit +5. Once profit target has been hit – look for the best that current price can offer and open three equal orders. Stop loss for all orders is -12 pips (without spread), profits will be taken next way:
1st order – close in 5 pips and later constant re-entry-scalping with rules described below.
2nd order – close on 14th (or 18th) SAR dot (whichever SAR got first 14 dots – just count them) – this gives us some relief that we have scored something. Also you may not wait till certain number of dots and just close second order where you fill it is a good gain to secure.
Another option: if you are familiar with waves and know what price retracement means, look to close 2nd order after the first, at most second clearly noticeble retracement and once the price has recovered and gave a strong move forward.
3rd – this order remains open and it is our constant relief that we are always earning something as long as both SARs are in agreement that the trend is alive. We close 3rd order only with the first SAR dot (any of 2 SARs) appearing on the opposite side signaling of a reversal.
Or if you feel it is enough for you – do not hesitate and close it earlier!
We trade both currency pairs at once. In total we run 6 open orders maximum.
EUR/USD and GBP/USD have over +90 in correlation which means they move simultaneously almost always. It helps to anticipate good or bad signs watching two pairs at once.
If with the first “trial” entry we have loss, open next “trial” position only when both SARs have agreed on the trend. (You may always wait for 2 SARs to be in agreement before entering any trade, but then sometimes you will miss most of the price move).
Now let’s move to our order # 1 which is going to be reopened to scalp the market with 5 pips in profit.
Stop loss will remain -12 pips. Profit target +5 pips.
Once hit 5 pips and we are on the same candle (price bar) set limit order on the same candle half way from the current price (this is not to be calculated, just approximately, also you may check previous candle extremes and set order accordingly). In other words, “half way” means half of the candle’s current body while the candle continues moving up and down). So, set half way below (for uptrend)/above (for downtrend) the recent price – what we want here is for the price to pull back, fulfill our order and bring us another 5 pips on the same spot. If it does not retrace – we will not worry as we have our two other orders gaining profits for us.
If a new 5 min candle appears, then project (visually) possible future retracement/pullback close to 8SMA and set limit order there – in other words, make your limit order “sit” on the tip of 8EMA line). Reposition your limit order with each new candle.
Now let’s play around 8 SMA. The price really “knows” this SMA.
a) If most of the candle has closed above (uptrend)/below (downtrend) 8 SMA for the first time – buy/sell accordingly.
b) For uptrend when price touches 8 SMA for the first time from above and current candlestick closes above or on 8 SMA – buy, but only if MACD’s histogram is not sloping down and about to cross 0 line or already below 0 line. If conditions are not met – sit and wait...
...And wait for the same MACD’s histogram to go below 0 line with the new candle and create a sharp turn (usually) or a rounding turn (not often). Enter on the close of the current candle after the sharp or rounding turn is spotted.
c) Constantly watch the price approaching SAR dots as once they meet – SAR indicator will signal for the change of the trend with the new dot not matter what, therefore if spotted – prepare to exit – do not wait for the SAR as it will redraw signal only in 5 min interval – valuable time can be lost. Instead watch the price, find the best “offer” and exit early with minimum loss.
If one currency pair is showing change in trend – e.g. got signal on SAR indicator, but the other does not – exit on both anyway. Pairs move simultaneously. So the other reverse signal is on its way to appear. You may find at times that EUR/USD pair usually moves slightly ahead of GBP/USD.
d) If the price for the first time has breached 8 SMA and closed on the opposite side – start watching closely the next 3 candles: if it comes back, closes on your side and goes in your favor – OK, but if price comes back, closes on your side and soon after goes and “attacks” 8SMA again and closes on the opposite side – exit with all you orders at the first suitable moment, because it is a strong (about 80%) sign of the trend reversal.
Once again the safest mode is:
If two SARs are in disagreement – stay out. Once both are telling the same thing – get in.
Happy scalping!
Scalping system #4 (5 pips with GBP/USD)
This simplified trading system derived from the previous “2 SARs to go” system and is a work of our dedicated scalper – Alex Wakemann. Thank you, Alex! His scalping insights will be published and updated on our pages as we move on. With this Forex scalping system Alex claims to always get at least 5 pips per trade.
Trading setup
Trading pair: GBP/USD
Time frame: 5 minute chart
Indicators:
MACD (5, 8, 9)
SAR on MACD (0.1, 0.11)
SAR on the chart (0.1, 0.11)
Trading rules
Trade only from 7:30 am EST to maximum 11:30 am EST. Preferred days – Tuesday to Friday.
Once both SARs are in agreement, e.g. suggest the same buy or sell opportunity – enter with either 1 order (to get 5 pips and leave the trade) or 2 orders at once (to chase the market further).
A stop loss is adjusted upon entry to the last but one SAR dot on the chart. If at the moment of the entry there is only one dot on the chart – set stop at this dot.
Profit targets – 1st – 5 pips.
2nd – only when an opposite signal appears – both SARs change direction or when the stop (by that time it is usually a profit stop or at least a break even situation) is hit.
If before that you feel that profits are already high to keep – lock them in earlier.
FOREX SCALPING SYSTEM
Now about exits:
If while keeping an open trade one SAR suggests an opposite trend, but the other does not – stay in trade.
Remember – a stop loss is always at the second nearest SAR dot on the 5 min chart.
With each new SAR dot – adjust stops for all orders to the second nearest SAR dot.
Why second? I found that very often the first SAR dot can be hit, but the second will hold. At that time I do not move my stop and sit tight until the SAR reverts and I can continue trading.
Additional notes: want even a better entry? Then open an additional 1 minute chart with the same settings and once got a signal from 5 min chart, look at 1 minute. Does the price confirms/moves in your direction or is it going the opposite way (temporarily making small corrections)? With the second option you have a time to wait until the price on 1 minute chart aligns with 5 minute chart.
Happy Forex scalping!
Scalping system #5 (Tops & Bottoms)
Probably the greatest dream of all scalpers is to be able to pick the right top or the right bottom of the price when trading Forex.
We are glad to bring to your attention the system that may become one of your favorite.
To save time we won't re-post it here, please follow next link to read the rules: "Tops and Bottoms" Forex trading System.
Simply follow the rules and aim for a short target/quick profits no matter what time frame you will end up with while searching for the required parameters.
For exits you may follow next suggestions, or create your own rules:
1. Exit on the close of the first long profitable candle when trading 1 hour or higher time frames.
2. Exit after 2 (or 3) consecutive profitable candles from the moment of entry when trading small time frames.
3. Exit with Bollinger Band as described in the strategy.
Happy scalping!
Edward Revy and my best Forex strategies Team
http://forex-strategies-revealed.com/
Scalping system #6 (EMA Bands)
This scalping system was sent by Frank Tenerife (Spain).
Thank you Frank! You contribution is greatly appreciated.
Here is the system:
"This is an efficient system of scalping that works in 1 minute up to 1 day all periods and all Currency
Ema 3
Ema 5
Ema 7
Ema 9
Ema 11
Ema 13
Color yellow
Ema 21
Ema 24
Ema 27
Ema 30
Ema 33
Ema 36
color Green
Ema 55 Color Red
Well
The system in The Oanda Forum.
And Way Works is
Buy Or Sell When the Group of Ema`s Yellow Breaks Ema 55
Take Benefit When Yellow Group Touches The Group Green.
If The Yellow group does Pull Back in Ema 55 or In Green Group Buy or sell again
Take Profit 10 Pip in Breaks Ema 55 And take Profit 5 pips In Pull Back
Stop loss 5 Pip 5 Minute Periods
The Good thing is Works with All periods and all the Currency
Forex scalping strategy
Grasias
Frank Tenerife Espa?a "
Happy scalping!
Scalping system #7 (Great GBP/JPY 1M scalping strategy)
So here is a strategy I have trying to work out fot the past month, and I seem to be getting better at it. What would be very nice, is if anyone can help me tune it a bit more.
Currency: GBP/JPY or USD/JPY (though i use it mainly on gbp/jpy:
Timeframe: 1M, 5M, 15M
Indicators: 3 sets of bollinger bands:
1) Period 50. Deviation 2 (RED)
2) Period 50. Deviation 3 (orange)
3) Period 50. Deviation 4 (Yellow)
(the template for this bollinger bands can be downloaded form this post)
Once you load your template you will notice the three sets of bollinger bands. Now, price will constantly range between these lines.
Sell strategy:
When price crosses the upper red band , at least half way to the orange band (if it gets to the yellow band is better but not as usual) Then the price will tend to retrace towards the center of the bollinger bands, you profit form this retracing.
Buy Strategy, it is the same as selling, the difference is that we will wait for the price to range between the lower red and yellow bands, and trade the retracing towards the center.
Tips: do not trade on ranging ,or quiet markets, do not trade previous to news releases. Go for 5 to 10 pips. Great system to trade between opening of london session and the closing of the japan session.
Stop Loss: since this strategy requires you to look at the screen (remember this is the 1M time frame) I tend to have two kinds of stops: time based and loss based.
Time based: Try and figure out how long will it take the market to get in your expected direction, if the time that you planned is already due, then close the order. No point on waiting for a loss...
Stop Loss: Since you are trading a very tight time frame your stops should also very very tight. Sometimes, you will profit from a 3 minute trade and you wont be able to set a proper S/L. So your stops will be given to you by your money management system...
What I would like to do is to study wether to add or not some extra indicators. I attach the results from my last week 102% profit, +80% of profitable trades.
Any help is welcome
Chelo
Template is attached as Zip file and goes in your templates folder in the MT4 directory...
Yes, true scalping involves risks as well as any other type of trading.
But if done correctly Forex scalping provides an additional degree of risk management as a result of holding trading positions for a very short period of time as well as constant monitoring of the price and collecting quick profits as they appear.
Please, do not forget to read our disclaimer policy. In short, Forex scalping systems you find below if used will assume trader's own risk and full responsibility.
Scalping Forex is fun. Learn it and trade profitably!
Best of luck in scalping the Forex!
Scalping ideas (ADX and Bollinger bands)
Scalping with the help of ADX:
To scalp effectively with minimum time spent, Forex scalpers need to know when the market is trending well and when there is nothing to wait for.
To find out about the strength of the market trend use ADX (Average Directional Index) indicator.
ADX does not show the direction of a current trend, it only shows the strength of the trend. Reading below 20 indicates a weak trend, reading just above 20 – gaining new strength trend and reading above 40 – very strong trend.
It is that simple – scalping is weak when the market is weak, when ADX deeps below 20 – opt for other life activities, do not sit and waste your time in Forex.
Scalping with the help of Bollinger bands:
Bollinger bands can help determine trends and especially upcoming trend reversals.
When price moves outside the Bollinger bands it is suggests a continuation of the current trend, while bottoms and tops made outside the Bollinger bands change to bottoms and tops made later inside the Bollinger bands suggest upcoming trend reversal.
Scalping system #1 (Economic news releases)
Look for the important news to be released. Choose the most influential ones that are expected to shake the market well. Once got news (last can be found in any Forex economic calendar) find out which currency pair is going to be affected.
Now, 15 minutes before the data is released place buy/sell stop orders on both sides 15 pips away from the current price. Half an hour prior to the big news Forex market usually flats out – no significant trading is done, currency is often “stuck” in a small tight range.
When important news is released, the currency will move easily, producing large pip movements in either direction. Using this scalping strategy, traders will be able to get in and out of the trade in seconds at almost zero risk.
After studying for a while a particular currency pair and its reaction to the news, traders can predict direction of price spikes and the length of the move in pips to set entries and profit targets more accurately
Scalping system #2 (Morning breakouts)
The closer time gets to 8:00 EST in the morning the less movements can be seen on the chart. It is a well known fact that once the Forex market “hears morning bell” at 8:00 am it is going to really move – stretching well doing morning exercises :).
What is needed from traders? Only to place 2 orders: above and below the last candle’s high and low at 8:00 am EST and join morning stretching having your 5 pips safely.
This is a scalpers’ breakout method, for which waiting long is a losing of precious time. If you want to join big traders your buy/sell orders must be above and below the price range created from midnight to 8:00am EST.
Currency pairs: EUR/USD, GBP/USD.
http://forex-strategies-revealed.com/
Scalping system #3 (2 SARs to go)
Be prepared to watch the price constantly. Monitoring the price is not an easy job.
Trade the most active hours – London and New York.
EUR/USD 5 min
GBP/USD 5 min
(optionally may also trade AUD/USD)
SAR (0.01, 0.1) – on the chart
SMA 8 – on the chart
MACD (5, 8, 9) + SAR (0.01, 0.1) on this MACD
Forex scalping with SAR
SAR defines whether we go short or long. We will take only one type of trades according with SAR signals.
Whichever SAR gives earlier signal – we take it. (Sometimes it can be “chart-SAR”, sometime “macd-SAR”)...
Trading Rules:
When we talk about “trend change” we mean small tiny trends that are actual for us scalpers on 5 minute chart. We do not want to know what is going on 15 min, hourly or even more so daily chart.
With the first SAR dot appearing on the opposite side (the trend has changed) – open one “trial” position Stop loss -12 (spread not included), Take profit +5. Once profit target has been hit – look for the best that current price can offer and open three equal orders. Stop loss for all orders is -12 pips (without spread), profits will be taken next way:
1st order – close in 5 pips and later constant re-entry-scalping with rules described below.
2nd order – close on 14th (or 18th) SAR dot (whichever SAR got first 14 dots – just count them) – this gives us some relief that we have scored something. Also you may not wait till certain number of dots and just close second order where you fill it is a good gain to secure.
Another option: if you are familiar with waves and know what price retracement means, look to close 2nd order after the first, at most second clearly noticeble retracement and once the price has recovered and gave a strong move forward.
3rd – this order remains open and it is our constant relief that we are always earning something as long as both SARs are in agreement that the trend is alive. We close 3rd order only with the first SAR dot (any of 2 SARs) appearing on the opposite side signaling of a reversal.
Or if you feel it is enough for you – do not hesitate and close it earlier!
We trade both currency pairs at once. In total we run 6 open orders maximum.
EUR/USD and GBP/USD have over +90 in correlation which means they move simultaneously almost always. It helps to anticipate good or bad signs watching two pairs at once.
If with the first “trial” entry we have loss, open next “trial” position only when both SARs have agreed on the trend. (You may always wait for 2 SARs to be in agreement before entering any trade, but then sometimes you will miss most of the price move).
Now let’s move to our order # 1 which is going to be reopened to scalp the market with 5 pips in profit.
Stop loss will remain -12 pips. Profit target +5 pips.
Once hit 5 pips and we are on the same candle (price bar) set limit order on the same candle half way from the current price (this is not to be calculated, just approximately, also you may check previous candle extremes and set order accordingly). In other words, “half way” means half of the candle’s current body while the candle continues moving up and down). So, set half way below (for uptrend)/above (for downtrend) the recent price – what we want here is for the price to pull back, fulfill our order and bring us another 5 pips on the same spot. If it does not retrace – we will not worry as we have our two other orders gaining profits for us.
If a new 5 min candle appears, then project (visually) possible future retracement/pullback close to 8SMA and set limit order there – in other words, make your limit order “sit” on the tip of 8EMA line). Reposition your limit order with each new candle.
Now let’s play around 8 SMA. The price really “knows” this SMA.
a) If most of the candle has closed above (uptrend)/below (downtrend) 8 SMA for the first time – buy/sell accordingly.
b) For uptrend when price touches 8 SMA for the first time from above and current candlestick closes above or on 8 SMA – buy, but only if MACD’s histogram is not sloping down and about to cross 0 line or already below 0 line. If conditions are not met – sit and wait...
...And wait for the same MACD’s histogram to go below 0 line with the new candle and create a sharp turn (usually) or a rounding turn (not often). Enter on the close of the current candle after the sharp or rounding turn is spotted.
c) Constantly watch the price approaching SAR dots as once they meet – SAR indicator will signal for the change of the trend with the new dot not matter what, therefore if spotted – prepare to exit – do not wait for the SAR as it will redraw signal only in 5 min interval – valuable time can be lost. Instead watch the price, find the best “offer” and exit early with minimum loss.
If one currency pair is showing change in trend – e.g. got signal on SAR indicator, but the other does not – exit on both anyway. Pairs move simultaneously. So the other reverse signal is on its way to appear. You may find at times that EUR/USD pair usually moves slightly ahead of GBP/USD.
d) If the price for the first time has breached 8 SMA and closed on the opposite side – start watching closely the next 3 candles: if it comes back, closes on your side and goes in your favor – OK, but if price comes back, closes on your side and soon after goes and “attacks” 8SMA again and closes on the opposite side – exit with all you orders at the first suitable moment, because it is a strong (about 80%) sign of the trend reversal.
Once again the safest mode is:
If two SARs are in disagreement – stay out. Once both are telling the same thing – get in.
Happy scalping!
Scalping system #4 (5 pips with GBP/USD)
This simplified trading system derived from the previous “2 SARs to go” system and is a work of our dedicated scalper – Alex Wakemann. Thank you, Alex! His scalping insights will be published and updated on our pages as we move on. With this Forex scalping system Alex claims to always get at least 5 pips per trade.
Trading setup
Trading pair: GBP/USD
Time frame: 5 minute chart
Indicators:
MACD (5, 8, 9)
SAR on MACD (0.1, 0.11)
SAR on the chart (0.1, 0.11)
Trading rules
Trade only from 7:30 am EST to maximum 11:30 am EST. Preferred days – Tuesday to Friday.
Once both SARs are in agreement, e.g. suggest the same buy or sell opportunity – enter with either 1 order (to get 5 pips and leave the trade) or 2 orders at once (to chase the market further).
A stop loss is adjusted upon entry to the last but one SAR dot on the chart. If at the moment of the entry there is only one dot on the chart – set stop at this dot.
Profit targets – 1st – 5 pips.
2nd – only when an opposite signal appears – both SARs change direction or when the stop (by that time it is usually a profit stop or at least a break even situation) is hit.
If before that you feel that profits are already high to keep – lock them in earlier.
FOREX SCALPING SYSTEM
Now about exits:
If while keeping an open trade one SAR suggests an opposite trend, but the other does not – stay in trade.
Remember – a stop loss is always at the second nearest SAR dot on the 5 min chart.
With each new SAR dot – adjust stops for all orders to the second nearest SAR dot.
Why second? I found that very often the first SAR dot can be hit, but the second will hold. At that time I do not move my stop and sit tight until the SAR reverts and I can continue trading.
Additional notes: want even a better entry? Then open an additional 1 minute chart with the same settings and once got a signal from 5 min chart, look at 1 minute. Does the price confirms/moves in your direction or is it going the opposite way (temporarily making small corrections)? With the second option you have a time to wait until the price on 1 minute chart aligns with 5 minute chart.
Happy Forex scalping!
Scalping system #5 (Tops & Bottoms)
Probably the greatest dream of all scalpers is to be able to pick the right top or the right bottom of the price when trading Forex.
We are glad to bring to your attention the system that may become one of your favorite.
To save time we won't re-post it here, please follow next link to read the rules: "Tops and Bottoms" Forex trading System.
Simply follow the rules and aim for a short target/quick profits no matter what time frame you will end up with while searching for the required parameters.
For exits you may follow next suggestions, or create your own rules:
1. Exit on the close of the first long profitable candle when trading 1 hour or higher time frames.
2. Exit after 2 (or 3) consecutive profitable candles from the moment of entry when trading small time frames.
3. Exit with Bollinger Band as described in the strategy.
Happy scalping!
Edward Revy and my best Forex strategies Team
http://forex-strategies-revealed.com/
Scalping system #6 (EMA Bands)
This scalping system was sent by Frank Tenerife (Spain).
Thank you Frank! You contribution is greatly appreciated.
Here is the system:
"This is an efficient system of scalping that works in 1 minute up to 1 day all periods and all Currency
Ema 3
Ema 5
Ema 7
Ema 9
Ema 11
Ema 13
Color yellow
Ema 21
Ema 24
Ema 27
Ema 30
Ema 33
Ema 36
color Green
Ema 55 Color Red
Well
The system in The Oanda Forum.
And Way Works is
Buy Or Sell When the Group of Ema`s Yellow Breaks Ema 55
Take Benefit When Yellow Group Touches The Group Green.
If The Yellow group does Pull Back in Ema 55 or In Green Group Buy or sell again
Take Profit 10 Pip in Breaks Ema 55 And take Profit 5 pips In Pull Back
Stop loss 5 Pip 5 Minute Periods
The Good thing is Works with All periods and all the Currency
Forex scalping strategy
Grasias
Frank Tenerife Espa?a "
Happy scalping!
Scalping system #7 (Great GBP/JPY 1M scalping strategy)
So here is a strategy I have trying to work out fot the past month, and I seem to be getting better at it. What would be very nice, is if anyone can help me tune it a bit more.
Currency: GBP/JPY or USD/JPY (though i use it mainly on gbp/jpy:
Timeframe: 1M, 5M, 15M
Indicators: 3 sets of bollinger bands:
1) Period 50. Deviation 2 (RED)
2) Period 50. Deviation 3 (orange)
3) Period 50. Deviation 4 (Yellow)
(the template for this bollinger bands can be downloaded form this post)
Once you load your template you will notice the three sets of bollinger bands. Now, price will constantly range between these lines.
Sell strategy:
When price crosses the upper red band , at least half way to the orange band (if it gets to the yellow band is better but not as usual) Then the price will tend to retrace towards the center of the bollinger bands, you profit form this retracing.
Buy Strategy, it is the same as selling, the difference is that we will wait for the price to range between the lower red and yellow bands, and trade the retracing towards the center.
Tips: do not trade on ranging ,or quiet markets, do not trade previous to news releases. Go for 5 to 10 pips. Great system to trade between opening of london session and the closing of the japan session.
Stop Loss: since this strategy requires you to look at the screen (remember this is the 1M time frame) I tend to have two kinds of stops: time based and loss based.
Time based: Try and figure out how long will it take the market to get in your expected direction, if the time that you planned is already due, then close the order. No point on waiting for a loss...
Stop Loss: Since you are trading a very tight time frame your stops should also very very tight. Sometimes, you will profit from a 3 minute trade and you wont be able to set a proper S/L. So your stops will be given to you by your money management system...
What I would like to do is to study wether to add or not some extra indicators. I attach the results from my last week 102% profit, +80% of profitable trades.
Any help is welcome
Chelo
Template is attached as Zip file and goes in your templates folder in the MT4 directory...
| Attachment | Size |
|---|---|
| scalping.gif | 36.44 KB |
| DetailedStatement.html | 38.79 KB |
| 1minuto.rar | 501 bytes |
Scalping system #8 (1 minute Scalping with Pivot Points) more to come..
The idea behind scalping at Pivot levels is simple. Pivot points are excellent levels of support and resistance. The moment price comes and touches them it bounces off like a rubber ball. Why not benefit from it?
The rules for scalping with pivot points in Forex are simple:
Calculate Daily pivot points for your favorite currency pair. For calculation use data from 5 pm Eastern time to 5 pm next day Eastern time.
Sit and watch 1 minute chart. Be patient. Let price touch any of pivot point lines, or come at least on pip away from it. Believe me, your patience will pay off. The price do touch pivots 90% of the times. 90% is a lot. Enter with larger than you would regularly do order, but be reasonable.
Set stop loss 3 pips + spread on the other side of the pivot line.
Take profit once available - I would usually close my trade within the first completed 1 minute candle and as soon as I'm profitable.
That's it. Enjoy scalping pivots, it's fun which brings profits along.
Forex Brokers that Allow Scalping: Research and Results
the topic of Forex Brokers allowing scalping is very hot.
I was looking for answers in various forums, tried searching with keywords in search engines, tried reading policies and FAQs on the websites of different Forex brokers...
It seemed like I had only guesses, but nothing solid to rely on.
And then I came up with a simple solution - sending customer support inquiries to the different Forex brokers...
My question to all of them was the same:
“Do you allow scalping? By scalping I mean holding a position for less than 1 minute.”
That’s it.
Today, I’d like to share with you what my research has revealed.
So, brokers allowing or not allowing scalping...
I’ve got the answers the same day from the next Forex brokers:
#1 MG Financial Group
Thank you for contacting MG Financial Group. In regards to your
question, you may keep your position open for as long or short a duration of time as desired.
#2 InterbankFx
We do allow Scalping but it might become a problem with our liquidity providers and filling orders etc… We recommend that you stay in a trade for at least 93 seconds. If a customer engages in scalping and it somehow becomes a problem we will notify that person.
#3 MIG Investments
MIG Investments does not require a minimum number of trades per month as neither we require a minimum pip value or open time for positions before allowed to close.
We do accept scalpers but since it is difficult to cover such positions in the market, we would need to increase the spreads for clients with permanent scalping strategies.
We consider an scalpers somebody who systematically pip hunts below 5 pips as average.
All the cases are studied based on general performance and we do get in contact with our clients prior to take any related decisions.
#4 OANDA
The term scalping here primarily refers to latency trading, where clients unfairly exploit, to their advantage, delays that may occur due to the fact that FXTrade is Internet-based.
OANDA does not have any restriction on the length of time a trade is held.
#5 MB trading
Got two short replies:
Yes, scalping is allowed.
Yes you can scalp with us.
#6 Forex.com
Yes, you can do that. As long as you have enough margin to open a position, you can close it at any time during our normal trading hours which is between Sunday 5 pm ET and Friday 5 pm ET.
#7 Global Forex Trading
Yes we do not have any restrictions to the length of time on holding positions.
#8 West Capital Forex
In answer to your question, Scalping is not recommended by our dealers and they actively discourage it.
The next day I've targeted remaining on my list Forex brokers and got next replies:
#9 CMC Markets
You are able to hold a position for less than a minute, however, we do not encourage scalping.
#10 United Global Markets
Scalping is not an issue so long as you are not taking advantage of our price feed lag. We do allow scalping, news trading, grid traders and other in and out traders.
#11 CROWN FOREX SA
Thank you for your interests with CFSA, we are so glad to reply your query regarding allowing scalping.
kindly note scalpers can trade with CFSA under the following conditions:
a. 3 pips spread
b. Max leverage at 1:100 (fixed margin requirements of $1000 per standard lot)
C. Depending on how aggressive the scalper is; a commission per standard lot or an increase in the spread may apply.
#12 IFX Markets
Your question is very easy to answer. We allow scalping, we don't care if we hold your position for 1 second if you can make money that quickly.
#13 FX Solutions
Yes, we do.
#14 Interactive Brokers
Dear Trader,
IB does allow scalping.
#15 Saxo Bank
The answer to your question is yes. You can hold a position for less than 1 minute.
But we don´t allow that you take advantage of the system.
#16 NorthFinance Forex Broker
Please note that we do not allow scalping. We actively discourage the trading method. The minimum required time difference from opening to closing a position is about 10 minutes.
#17 Forex Club Financial Company
Yes we allow scalping. Only thing if you going to request a lot of quotes and not act on them the system will put you on the bottom of the list and you will receive lesser priority.
#18 CMS Forex
We have no age requirement for positions. Be they open for 1 year or 1 minute, you can mange your positions as you wish within our market.
#19 EFX Group
We allow any trading strategy, including the one you mentioned!
#20 Then from the FAQ of Global ForexNow
I've copied next: "Do you allow scalping?
We don’t condone any one particular type of trading style."
So far seems like almost nothing should bring clouds to your sunny sky... Is it really so..?
Opening accounts with each and every of mentioned here Forex brokers and scalping for at least about a month to get a result would be a very difficult task... So, hopefully, we are going to hear from other traders about their experience. Please drop us a line in a form of comment below. Thank you!
There were also two brokers that did not gave a straight forward answer on my question, but to complete my check list report I'm going to cite their replies anyway:
#21 ACM
I would like to take this opportunity to introduce myself as your Account Executive at ACM. In the next few days I will contact you in order to discuss how to use our services to your best advantage.
#22 ODL Securities
I would be happy to answer any questions you have regarding opening an account with ODL. What is the best telephone number to contact you?
Please note, that my research is based not on a real account with each broker and actual scalping with no problems. It is rather a journalist report on some sort of “interview” with brokers’ customer support. So, there is no way I can guarantee that you can go out and scalp freely with any of these brokers.
Tips and Facts about Scalping in Forex
Tips and Facts about Scalping in Forex
The only way to make small account big in a short period of time is through the use of really high leverage. But wait... do not jump of the cliff right away. Start with reasonable leverage for scalping, for example 20:1 or at most 50:1, then move on as you see scalping skills improve. But even before that do not be lazy to demo trade your scalping system – make sure it will not disappoint you later...
The only way to trade with high leverage without risking blowing up an entire account in only 10-15 trades is by trading with a tight stop loss. Trading without stop loss will “kill” your investment in no time.
It is wise to decide on the size of the trading lot and exposed risk in advance.
Do a simple math: calculate the worst possible situation, e.g. 10 consecutive losses in a row; then see if your account will survive and if there be something left to move on. And, although 10 losses in a row is a very unlikely scenario, you cannot deny it...
Although Forex is active 24/7, not every hour is suitable for scalping.
No scalper wants to sit in front of the monitor for numerous hours bored and disappointed with the “sleeping” price as it literally moves nowhere.
Scalpers hunt for volatile, liquid market. There are 4 major market sessions: London, New York, Sydney and Tokyo session. To trade effectively scalper needs to learn behavior of a chosen currency pair and define most active sessions, even particular hours for this pair to be able to catch good price moves.
Another thing to keep in mind is spread which brokers charge for different currencies.
The higher the spread the harder it will be to collect desired pips(because once trading position is opened, trader must cover spread cost – earn pips for broker first – and only then collect own pips).
And, of course, the lower the spread the easier/faster it is to accumulate pips.
Another factor to consider is an average daily range of the price for chosen currency.
The wider it is the more realistic is an opportunity to profit from price moves.
One of the scalpers’ favorite currency pair is EUR/USD with its low spread and good daily price range.
While using high leverage combined with high frequency trading, scalpers should be very cautious about the cost of actual trading, as each pip here makes a dramatic difference after a large number of trades.
This means being very careful with entries and exits, stops and limit orders, and also be very realistic about profit targets.
Once in the trade, scalpers should manage trading risks by:
1) moving stops to break-even as soon as situation permits;
2) taking profits at a logical levels: at round market price numbers: 00, 10, 20, 50 etc., at previous support/resistance levels, at Fibonacci levels etc.
3) getting out of the trade if the price freezes for longer time than expected.
Scalp-trading is very demanding and requires a lot of concentration, constant monitoring of the price and very quick decision making. Also, short time frames used in scalping strategies, require a good grasp of trading complemented with sound technical analysis skills. It is not a place where beginners feel very comfortable as it demands from traders a good chunk of experience.
Scalping involves substantial risks
A lot of beginners have common problem when trading highly leveraged accounts – they tend to maximize profits by trading with full capital at once. Do not do that! Maximizing chances for higher profits goes hand in hand with maximizing risks! The size of positions opened must be calculated very accurately so that your entire account will not be wiped out with just one(!) very unfortunate trade.
Another factor that increases risks for scalpers is the spread traders pay when open a trade.
Each time a new trade is open, the spread cost is paid to the broker, thus opening 10 small trades instead of 1 long term trade increases the cost of trading in 10 times.
If to measure risk/reward ratio of such scalping activity it may show very risky and potentially losing trading.
Example:
With GBP/USD currency pair a scalper sets profit target of 10 pips and stop loss of 10 pips. So far it is 1:1 risk/reward ratio.
In the next step, when the spread is added, the picture changes. For example, the spread his broker charges for GBP/USD is 4 pips.
When scalper opens a position he is -4 pips (the spread has been charged). Now in order for him to reach the target of 10 pips profit, the price has to move +4 and +10 pips = 14 pips.
On the other hand, in order to trigger his stop loss the price should move... -4 is already in place... so, only -6 pips and he will be stopped at total of -10 pips... the risk-reward ratio has changed in over 2:1, not very promising situation indeed...
To understand the full challenge of scalping as a trading style, consider this: hard work and small gains accumulated over a decent period of time could easily be wiped out with one large loss. Finding a balance between profit levels and size of acceptable losses presents the most difficult challenge to scalper’s strategy.
Best of luck in achieving your goals!
Forex Scalping
Forex Scalping can also be called a quick trading. It is a method where traders allow their positions to last only for a matter of seconds, to a full minute and rarely longer than that.
(As a rule if a trader holds to a position for more than a minute or two it is considered no longer a scalping, but rather a regular trading.)
The purpose of scalping is making small profits while exposing a trading account to a very limited risk, which is due to a quick open/close trading mode.
There wouldn’t be any point in scalping for many traders if they weren’t offered to trade with highly leveraged accounts. Only ability to operate with large funds of, actually, still virtual money, empowers traders to profit from even a 2-3 pip move.
How do they do it? Suppose a scalper opens a trading position of 100 000 units with EUR/USD. For each pip he will now earn $10… Closing in with only a 3 pip profit brings it up to $30 — not bad for less than a minute of work…
Now, you would probably ask what Forex brokers think about it, because if a scalper constantly wins, the broker would obviously sustain some losses.
That is why the other popular discussion topic is always at scalpers’ attention: What Forex broker would allow you to scalp the market?
Obviously, dealing desk brokers would not agree with scalpers’ trading style and most likely will ask a trader to change his/her trading habits or to find another broker. But, even if a scalper stays in, there is another method to slow scalper's performance down and it is to set delays between an initiation of the order and its actual filling. The reason behind it is that dealing desk brokers need time to countertrade/process each order to prevent own losses in case a trader closes in profit.
The broker that will not object to scalping is the one that has the best trades processing automated platform. Using straight through processing there is no intervention between a trader and a market maker — the software is taking care of the whole business process. So, it’s more likely a broker with a “slow” business processing platform would object to scalper’s trading style.
You can read some more info about scalping and find useful tips for scalpers at
Now, we welcome you at our Scalping Strategies Collection to discover trading strategies that can be used for scalping in Forex.
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