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Beautiful Magnet Line Dance on the EURUSD

Friday, April 13th, 2012

So, my schedule hasn’t eased up much at all lately. Take a look at this picture-perfect Magnet Line Dance on the EU.

 

*** EURUSD Market Structure ***

Structure

EURUSD MARKET STRUCTURE

 

Notice the very long downward flow to the EU. Something was certainly pushing this currency lower. Would it continue? Who knows.

 

*** EURUSD Scalp Enter ***

Dance

EURUSD SCALP ENTER

 

What do the Indicators tell us?

  • Logical Forex Activity Lines – Box-like or larger. Plenty of liquidity not too far into the NY open.
  • Logical Forex News Alert – Just came out of a news event.
  • Logical Forex Flow Lines – Price is flowing down nicely. The Spine is revealed
  • Logical Forex Phase – Showing some divergence. Not a fan of this.
  • Logical Forex Bias – Pointing downwards.
  • Logical Forex Magnet Lines – Price is approaching a Magnet Line. Watch the spot-on Dance that it does.
  • Logical Forex Watchdog– Barking yellow at near the exact point of entry.

It was clear that Price was struggling with that red Magnet Line. With the divergence, I was concerned. If Price didn’t do it’s Dance exactly on the Magnet Line like it did, I would have passed on this trade. As such, I decide to ‘try’ the trade – just with smaller lot sizes than normal.

As price completes its Dance, then begins to accelerate on the Broker Quote Panel, I hit the SELL button.

 

*** EURUSD Scalp Exit ***

Pull back

EURUSD SCALP EXIT

 

So, what happened?

Price continued to progress further down, only really hesitating once. As Price began to pull it’s way back up, it was time to exit for some profit. I could have held on, but I opted for the low-lying fruit – no-stress style.

 

***

Happy Trading!

-Scott

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Forex Scalping a Continuation Trade

Friday, March 16th, 2012

Hello Traders!

I was hoping to put up a chart yesterday of a trade I took, but at least for me I found the markets to be a bit too choppy for my liking. As a result, I was out of the market all day yesterday.

You often hear me talk about market flow and symmetry. Any time you see spikes in Price on one of our Logical Forex charts, that does greatly decrease your chance of a profitable trade. In terms of symmetry, if you see a big spike (outside news events) it is often the case that you will see more of them. Such quick jumps are not something I prefer to put myself in front of. That’s just my personal assessment.

Here’s a trade from today…

 

*** EURJPY Market Structure ***

Upward

EURJPY MARKET STRUCTURE

 

As you can see, price had been motoring up for quite some time. If I were to have any bias at all, it would be that a retrace was about to happen. However, we must not bring in our biases – we must simply watch what the market (Price) is telling us…and then go for it.

 

*** EURJPY Scalp Enter ***

Dance, Magnet Line

EURJPY SCALP ENTER

 

Now that I am zoomed in, let’s take a look at the Indicators:

  • Logical Forex Activity Lines – Boxes or larger. Plenty of liquidity.
  • Logical Forex News Alert – No news showing.
  • Logical Forex Flow Lines – Price had a large move upwards. More recently, it is coming out of some tight consolidation, and approaching a Magnet Line. The Flow Lines are opening up nicely. The Spine is fully revealed. Like a spring, Price propels upwards.
  • Logical Forex Phase – Tracking along with Price. This is particularly important on a continuation trade.
  • Logical Forex Bias – Still pointing upwards.
  • Logical Forex Magnet Lines – Price is approaching a Magnet Line.
  • Logical Forex Watchdog– Barking solid yellow.

As you know from reading my blog posts, I always prefer to see a nice tight dance of Price around the Magnet Line. Given this type of tight consolidation setup, it is often the case that there is no dance. As I started to eyeball the broker quote panel, Price started to make its upward climb again. Rather than wait for a dance, I did enter with a BUY.

 

*** EURJPY Scalp Exit ***

Pull Back, Momentum

EURJPY SCALP EXIT

 

Price did in fact keep going northward for quite a while. Remember, I keep my eyes on the broker quote panel. I just have the charts in my periphery while a trade is going on. The charts get me prepared for a trade, the broker quote panel gets me into and out of a trade — and is what puts cash in my pocket.

As Price started to slow, and then pull back slightly, it was time for me to exit with some profit – nice profit.

I could have continued into the trade for some more pips, but I prefer to cash in the bird that is in my hand.

 

***

So, this is just another day of trading with the Logical Forex Indicators. Ready to take the plunge yet?

Happy Trading!

-Scott

 

 

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Scalping Forex Using Market Symmetry

Wednesday, February 8th, 2012

Today was a good day for the EURJPY. I am glad I got up early and sat down at my computer when I did!

I sure do love forex scalping!

 

*** EURJPY Market Structure ***

Decision Points, Chart

EURJPY MARKET STRUCTURE

 

Notice the nice symmetry with the flow of the market. Price was hovering around a very nice Magnet Line. I like what I see so far.

 

*** EURJPY Scalp Enter ***

Magnet Line Dance

EURJPY SCALP ENTER

 

Once I zoomed in, this is what I saw.

Let’s look at the Indicators:

  • Logical Forex Activity Lines – The lines are nearly boxes. They are not super-wide for sure, but approaching the NY open was enough reason for me to look further.
  • Logical Forex News Alert – No news showing.
  • Logical Forex Flow Lines – The Flow Lines are coming out of consolidation, and separating nicely. Everything is the same color. The black Spine is fully revealed.
  • Logical Forex Phase – It is tracking along with price.
  • Logical Forex Bias – Starting to point downwards.
  • Logical Forex Magnet Lines – Price did a very tight dance around the red Magnet Line, then started to go through just as the broker quote panel started to become very active.
  • Logical Forex Watchdog– Barking to take a look.

As price started to tank on the broker quote panel, I entered my large-lot sell.

So, how did the trade turn out? Was I wise for entering when I did?

 

*** EURJPY Scalp Exit ***

Pull Back

EURJPY SCALP EXIT

 

Price continued falling. It did hesitate shortly, and I was very much ready to exit if price pulled back against me at all. I would have still exited with profits. However, price did continue down. I exited as price started to take back what was so nicely given to me.

Overall, this was a very nice pip trade. I could have held on even longer for more profits, but I could have also ended up many hundreds in the red, too. I prefer to go for the low-lying fruit – compounding my profits all the way. Leave the rest of the money for those who prefer more stress than I do.

***

If you have been reading my blog posts for a while, I really do hope that you are seeing similarities in my trades. There are many. In fact, many of the trades I take I can take my analysis of the Indicators and copy-paste much of it. Isn’t it comforting to know that certain things can be identified and then traded consistently? It sure is for me.

Happy Trading!

-Scott

 

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