Can You Scalp Forex Any Time of Day?

I don’t normally trade this time of day. However, I just can’t pass up a good trade. I actually “broke one of my rules”, in that I was working on something else and not fully engaged in trading. I had my chart up, though. I almost always have my chart up. :-)

So, I noticed an interesting continuation pattern. Several of them, in fact. Price had been going down for a while, then entered a “rest period” of consolidation for a while, and then started it’s downward move again.

Here is the context of the market activity…

### EUR/JPY Zoomed Out

EURJPY Market Structure

EURJPY Market Structure

Something I found interesting was how strongly price was reacting around the Logical Forex Magnets. That gave me a clue that any move continuing past that lowest Magnet Line could be a equally powerful one.

*** TRADE #1

There was actually a fairly nice trade at that first “weak magnet line” around 5:10am US/Central. I didn’t notice this on my charts at that time as I was away from my trading desk. But, it was a good trade to enter with no hesitation, and if it helps you, I would have exited as soon as price got near that Logical Forex Magnet line.

So, by the time I returned to my desk, I saw this setup…

EUR/JPY Big Move Scalp And More

EUR/JPY Big Move Scalp And More

I wasn’t entirely convinced that this trade would actually work. It is not a “super” high probability trade, so I was ready to bail out quickly. You know how I do that…”in and out quickly, whenever it goes against me”.

So, you’re probably wondering…Why was this not a “super” high probability trade? Two reasons have the biggest impact…the time of day, and the Logical Forex Phase was a bit, well, ILL-logical for how I prefer to trade continuations.

But, the trade setup was good enough. There was a lot of price movement and momentum, I like “decision points” around strong Magnet Lines, and the confluence of signals gave me a “good enough to go”.

And…wow…did price Go! This is when you simply “hold on” and your forex scalping trade turns into a big winner!

Exit #1

EUR/JPY Big Move Scalp And More

EUR/JPY Big Move Scalp And More

Overall, this was a nice, calm “ride”. Price ran rather smoothly on the chart, but more importantly, on my broker trading platform. The price quotes stayed in an almost constant “down” mode. Of course, when price hit that first major “stalling point”, I exited. You’ll notice that stalling point from the longer yellow flat line of the price line (the white line).

The net on this one was roughly 22 pips after spread and commissions. Nice!

Now, here is an interesting note…price continued downward for another 20+ pips. Does it bother me that I “missed out”? Nope. Not in the least. I’ll leave it to you to ponder why. :-) Just read more of the blog postings, and you’ll find out. Hints: I don’t like stress, and ALL profit is great!

So…why didn’t I take the setup at around 4:28am? Well, I wasn’t sitting at my computer then. :-) But, even if I was, notice how differently the Logical Forex WatchDog was behaving at that time. Yes it started signaling “early”, but notice by the time the price is TELLING us what it is doing, the Logical Forex WatchDog has actually been “barking” for quite a while.

Now, compare that to the trade I took. The Logical Forex Flow Lines look differnent, don’t they? (They are similar, but not identical.) And, the WatchDog certainly is behaving differently.

And, what all of this means is…I really do trust the Logical Forex Indicators, but I don’t “enter a trade” just because they are signalling. No…it ALL has to be LOGICAL to me…and if it was as simple as just letting the indicators TELL ME when to trade…I might was well be doing this like an automated trading robot. (No thanks. Not for me. I’ll write more about why robots don’t usually work very well in a future post.)

Always let the Logical Forex Indicators CONFIRM to you that the market makes sense, price is flowing within a structure that makes sense to you, and you can enter without having to predict or hesitate. Yes, you can do it!

4 Responses to “Can You Scalp Forex Any Time of Day?”

  1. Greg says:

    Hello Courageous Anonymous! ;-)

    I can’t remember a time when I have actually approved an anonymous post, especially one who also used a fake email address.

    But, I understand the questions you are asking (no, wait! they are statements and accusations!), and I want to make sure you a properly informed.

    Why don’t I ever show a loss?

    Fair question. Two answers.

    1. My losses are rare. My losses are very small. “In and out quickly, whenever it goes against me.”

    Now, please understand this. I *do* have losses from time to time. Those times are most frequently when I trade more aggressively than I am comfortable with.

    *** BUT HERE IS THE MOST IMPORTANT REASON WHY I DO NOT SHOW LOSSES ***

    2. Trading forex, especially with Logical Forex, we need to reinforce patterns and setups that WORK and NOT those that don’t work.

    If I showed losses, even one, it would be similar to a musician teaching you how to play bad notes on your guitar…or a golf instructor showing you how to hit a horrible shot.

    No, what I show is HOW to trade with GOOD setups. I teach you how to “play the RIGHT” note…or hit the golf ball CORRECTLY.

    More importantly, and more so recently, I have been posting “trap setups” as one trader calls them. I will be posting more of these. And *this* will help traders avoid bad trades…far more than showing losses or bad trades in trade examples on this blog.

    However, nothing I show on a static chart image will EVER replace real experience that a forex trader gets by actually trading with Logical Forex…seeing the setups, and having the ability to trade with no predicting…no hesitation…low risk, high probability setups…and no stress…THOSE things ONLY come from real experience with live charts, and even live trading.

    Do I “cherry pick” the trades? Absolutely! But, not as you seem to think I do.

    I “cherry pick” the trades that are the HIGHEST PROBABILITY, and trade them. And THAT is what you see reflected on the charts. I don’t “get them out of nowhere”…the trades are clearly on the charts, and you, too, can see these trades forming with the Logical Forex Indicators…learning what is in the Online Training Videos…a little experience…and maybe even a boost to your trading with a Private Forex Workshop with me.

    Oh…and by the way…you’re also correct. I do put the arrows on the chart after the trade. There is no other way to do it…because we use NinjaTrader to watch for setups…and trade with the broker trading software. So, there isn’t’ any other way to get the arrows on the chart.

    Yep…I “trade the signals” all the time. So do the traders who use Logical Forex…and especially those who have dedicated their time, effort, and energy to becoming a consistently profitable trader. We have a lot of fun.

    So, I appreciate your comments and how “right” you have been about everything. Almost.

    * You actually asked a question(!) about me not showing losses, and I answered that by telling you that I want my clients to see the RIGHT way to trade…and have VERY few losses

    * You stated that I “cherry pick” my trades, and you were right, again…as I only take the highest probability trades. Yep, during the live market.

    * You stated that I put the arrows on the chart after the trade, and again, you were right, since there is no other way for me to put the arrows on the charts during the trade using my broker trading software

    * And, oops, you were wrong…we do trade the signals, and have a lot of fun and make consistent profits doing it

    You can easily experience these things on your own and become a professional forex scalper with some dedication and effort. But, it might not be something that works for you. Logical trading isn’t for everyone.

    -Greg

  2. Greg says:

    Hello Tawsif.

    The black dotted line, the Logical Forex Groove, does appear to influence my trading in many of the chart images that I post. Normally, I use the Logical Forex Groove for exits, and not for entries.

    Even then, my general rule is…”In and out quickly, whenever it goes against me.”…whether I am in profit or not. Because of my countless hours of observing how my favorite currency pairs move (EUR/USD and EUR/JPY) and my effort applying the Logical Forex Indicators…many of the trades I enter are “big moves”. Not all of them…but certainly the ones I focus on finding…those Low Risk, High Probability, No Stress trades. On THOSE trades, I trade “maximum lots”…and am generally “done for the day”. But, it’s because I am patient and wait for those high probability setups that I can fairly frequently use the Logical Forex Grove for my exits. Otherwise, like I said, I get out quickly. ALL profit is good, even small profit…and it is even better when there is NO stress.

    Now, your observation about the Magnet lines is a good one, too. However, a Logical Forex Magnet Line is NOT a simple “support and resistance” area. Yes, sometimes it will operate that way, but just because price “broke out or through” doesn’t mean I’ll take the trade. The market FLOW has to make sense, price has to have some good momentum, and the other Logical Forex Indicators must be telling me that the market AND the trade are all “logical”, and then I will quickly enter without hesitation…and I don’t have to predict, either.

    The grid lines have little impact on my entering or exiting a trade, although they do help me see the structure of the market a little more clearly.

    And, patterns like triangles and such don’t normally add much to the market intepretation, either. You can see pretty clearly (and quickly!) whether the market is moving and flowing…or consolidating…and when the market structure “makes sense” and the Logical Forex Indicators show me this…then I’ll take the trades.

    It sounds to me like you are VERY close to having a VERY good grasp of Logical Forex. Keep going!

    -Greg

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