EUR/USD Smooth Scalp for Nice Profits

I have been waiting for a few minutes for a continuation trade. This is a good time of day and session for that to happen (hint).

This is a good “one trade day”. I’m done for the day.

*** TRADE #1

Big Continuation Move

Big Continuation Move

Exit #1

Big Continuation Move

Big Continuation Move

That’s a LOT of pips for a very small amount of effort. And, with a large lot trade, it’s a LOT of money.

4 Responses to “EUR/USD Smooth Scalp for Nice Profits”

  1. Greg says:

    Hi Zeeshan.

    Let’s cover this in two parts…entry and exit.

    I entered based on a number of signals occurring at the same time…the Logical Forex Flow, Bias and Groove were all nicely angled downward, and there was nice price action near the Logical Forex Magnet Line. The WatchDog had also signaled. The only real question on entry was what direction price was going to take, and since I don’t predict, I was just as ready to exit the trade as to stay in it. I was basing my quick exit on any price spiking back above the Magnet line…and if price continued in my favor, then I would stay in the trade.

    Price instantly took off in my favor, and with little hesitation, continued downward. Based on this momentum of this move, I decided to “hold on” to the trade, and use the Logical Forex Groove as a guideline to considering an exit. That was not my only exit criteria, as I will also consider price spikes, other Magnet lines and a few other factors.

    Now, your observation about the Logical Forex Phase turning green after I had entered is a good question. When the Phase turned green, that is a perfectly valid exit point. Taking quick profits is EXACTLY what I recommend that most traders do, and especially when you are new to Logical Forex. TAKE PROFIT QUICKLY. EXIT A TRADE THAT GOES AGAINST YOU JUST AS QUICKLY.

    What you can’t see from the chart is the *speed* (the momentum) of the price movement. It was very convincing that it would continue downward. And, that is the primary reason why I stayed in the trade.

    Now, the divergence you mention is also an interesting observation. I use divergence only for entries, not exits. It is normal for a “divergence” (well, what appears to be a divergence in the Logical Forex Phase) to happen as a price loses momentum. So, what you are seeing reflected is another confirmation that it is a good time to exit the trade, yes, but not normally what I use to exit. As I mentioned, in this case, I was using the Logical Forex Groove for my exit strategy. Again, this is NOT something I recommend anybody does when first starting out with Logical Forex. As you gain experience, it gets easier to “hold on”, but it’s best if you simply exit as soon as you are in profit, and not try to “hold on” until you have seen the moves through a Logical Forex chart for a while.

    Finally, let’s talk about that divergence again…but this time…from a “re-entry” perspective.

    Based on the strength of the move, and the divergence, I would consider that this particular move is now “tired” and unlikely to continue in a downward direction. It may, it’s just that for MY trading style, unless I see convincing evidence otherwise, I will simply wait for the market to change direction to an upwards bias. This may take a while, but I’m in no rush. I want to take the highest probability, lowest risk, least stressful trades…and I have found this works best for me. Other traders want to be far more aggressive, and that’s fine…we just have to find what works for each of us, based on our personalities, our risk profiles, market conditions and more.

    From your question, it seems that you are making tremendous progress! Keep it up! Continue to carefully watch live charts, and maybe even try some Market Replay, and this will all “come together for you” very soon I suspect.

    Great job, Zeeshan!

  2. Greg says:

    The charts you see are US/Central time (Chicago, Dallas, Houston). You can convert to your local time using http://www.logicalforex.com/go/timezone

    Probably 70% of my trades are VERY quick in-and-out trades. It depends on the market conditions, the session I am trading, etc. Primarily, it depends on the logical flow of the market and the momentum of the moves that determine when I will “hold on” to a trade, or take “first profit”…the “VERY quick in-and-out”. I still recommend you do this for a while…as soon as your trade goes into profit, close it for a profit. If it goes against you, get out just as quickly. After you do this for a while, you will begin to see a pattern that you can fairly easily interpret on a bit more precise entry and exit point. Of course, while you are doing this, continue with a demo account, or trade very small lot sizes.

    Also, as you review your charts, you will see certain times of day (sessions) where the same basic pattern repeats day after day, and often near the same TIME of day. You may want to zoom out a bit to see this.

    FXCM Microlots is fine. I trade with them frequently.

    Continue trading demo or small lot sizes until you have built up the confidence you desire. DO NOT RUSH THIS PROCESS. You are obviously a very intelligent person, and you likely have some skills that you are very good at. You didn’t acquire these skills “overnight”…or even in a few months…or by watching a short video. You have continued to build your expertise over time, making observations, trying and testing things, and finally putting it all together so that “it” works best for you. Trading forex is no different. It’s not an “immediate gratification”. But, from what I’ve experienced, when people like you continue to learn and practice, trading Logical Forex is one of the fastest and most efficient methods to taking the best high probability/low risk trades, while staying relaxed. Like I’ve mentioned before to you, it sure seems you are making great progress and will continue to do so.

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