Despite everything we think we may know about forex, scalping, or forex trading in general, we really never know how a trade will turn out. Scalping forex on a consistently profitable basis is all about tilting the odds of trading success as much in our favor as possible. I am a big believer that true professionals need to know what their trading edge is. What is it that gives you an edge? Do you even have one? I sure have mine.
Logical Forex Scalpers have several edges. One is our laser-focus on two and only two currency pairs – the EURUSD and the EURJPY. Rather than dabbling in countless currency pairs, we get married to only these two. Knowing them as well as our spouse or our best friend, we really start to understand their personality, their subtle nuances, and even how they think. By recognizing consistent patterns, we are able to leverage this knowledge into successful scalping.
Another edge that Logical Forex provides is the ability to see the markets’ true decision points. Rather than fight the true leaders of the forex market (the large banks and other institutional traders) we only jump onto a trade once these market leaders advertise which way they intend to take the market. We wait patiently until it is very clear what they are going to do – and then we try the trade. Once you combine the power of the Logical Forex Magnet Lines with what your broker quote panel is telling you, then you truly have an edge that puts you in the top tier of forex scalpers.
### EUR / JPY MARKET STRUCTURE
NOTE: Remember that you can click the chart images to enlarge them in a new browser window. Just close that window to return here.
It seems most of my trades this week have been with the EURJPY. That happens sometimes. I simply evaluate the market structure, make my decision on which currency I want to focus on, and don’t jump back and forth between the two.During my available trading time today, I could see that the EURJPY did a strong move up and was making its’ descent back down. I liked the flow and symmetry that I was seeing in price.
Price had made a nice Flow Flip and then proceeded to move down. You can see that price started to tighten up a bit (notice all the stacking yellow) as it started to interact with a Magnet Line. You can see that the magnet dance was quite tight, and did poke through the Magnet Line at roughly 8:43am US/Eastern (New York). If I were looking at the Magnet Lines as mere Support and Resistance (don’t do it!) then I would have likely hit the sell button immediately. That would have been costly, as you can see that price pulled back almost immediately by 5 pips + spread + commissions. Ouch!
What just happened there was the big boys cleared out a bunch of stops before announcing their true intentions – continuing the downward flow of price.
You will notice that I entered at the red arrow. The reason for this is that (a) price went through the Magnet line after its’ dance and (b) MOST IMPORTANTLY – the sell price on the broker quote panel started to pick up speed and start flashing – announcing something exciting was going on. This is the announcement of the markets’ intentions. It doesn’t tell me how far they may take the market down, but it does tell me in real-time that it is in fact going lower.
So, I jumped on the train along with the big players.
You can see that price moved pretty fast – down. I should point out that I do not watch the chart once I am in a trade.It can never update as fast as the broker quote panel. Once the panel started to slow down, it was clear it was time to exit. My exit in fact occurred as price started to pull back a little.I intentionally showed what happened to price over the following several minutes – it continued to go down. Do I care? Nope. I got my pips – quickly, with no stress!
If you truly want to have a forex scalping edge, it’s time to stop dabbling with every scalping system that comes along and start focusing on one. You can get your trading edge with Logical Forex. I like my edge. I believe you will like yours, too.