Archive for January, 2012

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Another Wonderful Forex Scalp

Tuesday, January 31st, 2012

I sat down at my computer a bit earlier than usual today. I had the urge to take a look at my charts.

This is what I saw…

 

*** EURUSD Market Structure ***

Decision Point, Structure

EURUSD MARKET STRUCTURE

 

Price was indeed hanging out at a very long and pronounced line of Magnet Lines. Worth taking a closer look? Absolutely!

 

*** EURUSD Scalp Enter ***

TightDance

EURUSD SCALP ENTER

 

Let’s look at the Indicators:

  • Logical Forex Activity Lines – Good, not great. Taking a trade here, especially this much before the NY Open, will likely mean the trade won’t be a quick in and out. Not everybody has come to play forex games just yet.
  • Logical Forex News Alert – No news showing.
  • Logical Forex Flow Lines – The Flow Lines are separated nicely. Everything is the same color. The black Spine is fully revealed.
  • Logical Forex Phase – Tracking along very nicely with price. No indications of divergence.
  • Logical Forex Bias – Starting to point downwards.
  • Logical Forex Magnet Lines – Price did a very nice, tight dance right on the Magnet Line.
  • Logical Forex Watchdog – Barking to take a look.

As price did its’ tight dance directly on the Magnet Line, I could have entered as price pierced through the Magnet Line. However, the broker quote panel wasn’t as active as I like to see. This also has to do with the lack of great liquidity at the moment. Had I entered, I would have quickly been -4 or so after spread/commissions. I did decide to wait for the pullback and then, as price exceeded its’ recent low, the broker quote panel became more active and I hit the SELL button.

 

*** EURUSD Scalp Exit ***

Pull back, Stall

EURUSD SCALP EXIT

 

As expected by the Activity Lines and time of day, this was not a fast trade at all. It did, however, have a consistent (albeit slow) descent. Once price started its’ pull back, it was time to hit the BUY button and walk away with my net pips.

 

***

 

What I am hoping to show you is how, in addition to just trading at market opens and closes, you can also trade Logical Forex at various times throughout the day or night. Sometimes you just need to be a bit more patient in (1) waiting for the ideal setups and (2) waiting for the trade to complete itself.

Happy Trading!

-Scott

 

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Posted in Scalping Setups | No Comments »

Another Glorious Forex Scalp

Saturday, January 28th, 2012

As I was already beginning to think of the exciting weekend ahead of me, I figured I’d take a look at the charts to see if I could get a trade in before I started my usual day of projects, phone calls, and the like.

It was around the NY open when I saw this type of market structure.

 

*** EURUSD Market Structure ***

Decision Point

EURUSD MARKET STRUCTURE

 

It was clear that the market was at a decision point. Notice how it is in the vicinity of that bright Logical Forex Magnet Line towards the right of the image?

This caused me to zoom in and take a closer look.

 

*** EURUSD SCALP ENTER ***

Dance

EURUSD SCALP ENTER

Let’s look at the Indicators:

  • Logical Forex Activity Lines – Good. Plus, it is right near the NY open. There should be good liquidity, should I choose to trade.
  • Logical Forex News Alert – None showing.
  • Logical Forex Flow Lines – Price had a huge run down. Now, it consolidated a bit and is in the process of deciding which way it will go next. The Spine wasn’t fully revealed, but the proper fanning out of the Flow Lines was enough for me.
  • Logical Forex Phase – Tracking along very nicely with price.
  • Logical Forex Bias – Definitely pointing upwards.
  • Logical Forex Magnet Lines – If you have been reading my prior posts, you will notice that I typically like a very tight dance of price directly to the Magnet Line. There was none of that just prior to my trade. So, what to do? Trade – or pass?
  • Logical Forex Watchdog – Comments on this are below.

Because there was not a very tight dance, I was not just ready to pounce on the trade. I wanted some extra verification before risking my hard-earned money. I waited for price to go through the Magnet Line, be pulled back towards the Magnet Line, then – as price started to exceed the recent high (and the broker quote panel started to light up in excitement) I hit the BUY button.

In regards to the Watchdog, notice how it did not light up until AFTER price had gone through the Magnet Line and then pulled back? If you were in doubt by the price action, this Indicator alone could have provided additional clarity.

So, I entered the trade. What happened?

 

*** EURUSD Scalp Exit ***

Pull Back, Slow Down

EURUSD SCALP EXIT

 

I always like when I get a good fill and price moves immediately in the intended direction. At this point, it was just a matter of deciding when to exit the trade. You can see there are several other Magnet Lines showing to the left of the screen. Even though they showed in the past, I was mindful of them – and expecting something to happen when price approached those levels.

I had my finger quick on the SELL button. The first dip in price, I was willing to exit if it didn’t start it’s northward trajectory again before coming back through the level of the Red Magnet Line. Fortunately, it did, so I stayed in the trade. As price moved through the second Magnet Line (Blue) and then pulled back some, that was my time to exit.

What you will notice is that price did continue to go up another 10 pips or so before it really broke down. Some will tell me I am wrong for not taking those profits, too. I will say that (a) it is easier to look at a chart in retrospect and say such things than it is during a live trade and (2) I was happy with the profits on the table. For those of you who want to hold on longer, you can always do so. Sometime it will work out (like it would have here) and sometimes you will get burned (like has happened to me so many times that I often don’t hang on like I used to). Whatever way you want to trade, really own it. You don’t need my approval. Just do it.I should point out that I held on longer than usual for this trade. No matter what, profits are good. All profits. Compounding my profits for larger lot sizes next week is even better.

For me, I was happy with my pips today, with minimal stress, and all of about 15 minutes from the time I sat down until the time I exited the trade. In fact, writing this blog is taking longer than the actual trade itself!

***

If you are still struggling trying to decide what type of trader you want to be, maybe now is the time to check out Logical Forex and decide if this is the type of trading for you. It’s not for everybody, that is for sure. But, is it for you?

Happy Trading!

-Scott

 

 

 

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Posted in Scalping Setups, Trade Setups | 2 Comments »

The Return to Forex Scalping

Wednesday, January 25th, 2012

Well, it’s been a full two and a half weeks since I’ve last posted to the blog. Unfortunately, I’ve been dealing with some family health issues that required my full attention. I was out of town for a while, and then playing catch up upon my return.

So, it’s been a little while since I’ve done any forex scalping. The nice thing about scalping forex is that you can walk away from it – and then return to it – whenever you want. Ah, the freedom.

Ok, so here’s today’s trade…

 

*** EURUSD Market Structure ***

Structure, Decision Points

EURUSD MARKET STRUCTURE

 

As you can see, price was flirting around with the Blue Magnet Line, at a level where it had been doing so several times before. Which way would price go, I surely do not yet know.

 

*** EURUSD Scalp Enter ***

Dance, Magnet Line

EURUSD SCALP ENTER

 

Let’s look at the Indicators:

  • Logical Forex Activity Lines – Decent. Nothing telling me to stay away.
  • Logical Forex News Alert – None showing.
  • Logical Forex Flow Lines – Price consolidated a bit and then started its’ descent upward. The Spine is fully revealed. Lines are spaced out nicely.
  • Logical Forex Phase – Tracking along nicely with price. Nothing raising any red flags just yet.
  • Logical Forex Bias – Definitely pointing upwards.
  • Logical Forex Watchdog – Barking at me to take a look.
  • Logical Forex Magnet Lines – Notice the beautiful tight dance right beyond the Magnet Line. As price started to exceed that recent high, and I eyed the broker quote panel, it was clear that something was happening.

I hit the BUY button, ready to try the trade.

 

*** EURUSD Scalp Exit ***

Scalp, Exit

EURUSD SCALP EXIT

 

This trade definitely wasn’t a fast one. In fact, it was painfully slow. Often-times when the Activity Lines are not very wide, you need to accept this. I kept my finger on the SELL button – ready to get out of the trade at any second.

Because there was another Magnet Line in close proximity, my target exit was to see if price would be repelled or attracted. Price did go through, pulling back to the line. On the next push, it was unable to exceed where price had been, so as it pulled back on the broker quote panel – i took my exit – and my pips of profit – with me.

***

How is your scalping trading going? Please let me know by posting a comment. I’d love to hear from you.

Happy trading!

-Scott

 

 

 

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Posted in Scalping Setups | 4 Comments »

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