Forex Scalping a Continuation Trade

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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