Would You Take This EUR/JPY Scalp?

I am WAY too tired to have traded tonight. I did take one trade about an hour ago…and still continued to diligently watch the market, but nothing else setup that I liked. So, I’m done.

Plus, the market has not been very easy to trade. In fact, it’s been quite challenging the past several WEEKS. This is quite typical of the summer months!!! — Well…summer in the Northern Hemisphere ;-)

This just means that I have to be even MORE selective on my trade setups. It also means that I will NOT get as many trades as I might like. But, that’s okay. I *must* take what the market gives me. I simply cannot “push the market around” and make it give me anything.

One of the things that has made the EUR/JPY so challenging to trade is that when price is nearing a Logical Forex Magnet line, price seems to bounce quickly and “big” away from the Magnet Lines…price is “repelled” in other words. What that means is, I need to be VERY convinced that price is going to continue it’s movement in the direction I’m trading…and that means I will have to be even more patient…perhaps giving up a few more pips…but truly trading with the momentum of the price. If it stalls or is moving slowly…it’s just too dangerous to try the trade.

I’m going to show you the only trade I took, around 1am US/Central. And, then, I’m going to show you a chart and I want you to determine what YOU would do.

Here we go…but before we get started, I want to remind you that you can click on any chart to expand it in another browser window (or tab). Just close that window (or tab) to return here. Okay…let’s go…

### EUR/JPY Market Structure Zoomed Out

EURJPY Market Structure and Flow

EURJPY Market Structure and Flow

Look VERY closely. What do you see? Is there a reasonable flow in the market? Is there structure to the flow? Here is a hint…”divide” the chart. Do you see some structure now? Is there any relationship of that structure to the Logical Forex Magnet Lines? Of price?

Oh…and by the way…what time is it?

*** TRADE #1

Do you see how patient I was? There were lots of little “semi fake outs”…or were they really?  Yep, this wasn’t easy…espeically if you’re the type of person that “shoots everything that moves. That’s a FREQUENT Trader…NOT an Agressive Trader. There is a HUGE difference. But…perhaps the biggest thing that helps is…do you REALLY know your currency pair? Are you willing to WORK AT IT to KNOW your currency pair like you do your spouse or your best friend?

eurjpy_07_31_2009_1_in

EUR/JPY Patient Entry

Exit #1

With the market so, well, jittery, and me so tired, I didn’t trade max lots…but enough to make it worthwhile. How much is that? Well…ANY profit is Good Profit. Remember The Secret Forex 4.2 Formula? Profit is Good. Compounding Profit is even better. :-)

Anyway, I exited as soon as price went against me. The static chart just doesn’t show you what I was seeing on my broker panel. There was this little pause in price right after it moved away from the Magnet Line…but was presenting itself in a real “fast” move…but not so fast that I couldn’t trade it. So…I took it, and exited with about 6 pips net. (Remember The Secret Forex 4.2 Formula!) Notice I did not hesitate to get out, either. I like these “instant profit trades”. :-)

EUR/JPY Fast Exit, Nice Profit

EUR/JPY Fast Exit, Nice Profit

Now, before you look at the next chart…scroll back up a bit and look at the zoomed out chart.

Do you see that Magnet Line near the bottom of that chart image? Might that be a reasonable place for price to reverse?

Go ahead…scroll back now and look at that chart again…and then look at the next one.

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Here is an image zoomed out that show the trade I took. Do you see what it was a Good Idea to get out when I did…in addition to the regular reasons I exit? You need to have a little bit of “memory” about what you have sen in the market…because the market sure has a memory! Maybe that’s something else Logical Forex Magnet Lines show you? Maybe they really show more than simple support and resistance?

EURJPY Market Structure and Flow

EURJPY Market Structure and Flow

And…here is what happened…the zoomed out version that shows the trade I took…the exit I made…and what happened shortly afterwards. Do you see any “structure” to this “flow? Do you see how price is continually attracted and repelled near thos Magnet Lines?…and the Flow, too? Does this give you an edge? Do you need to “predict” this? (NO!!!) Just let price tell you what it is DOING…not what it is GOING to do!

Zoom Out After EURJPY Trade

Zoom Out After EURJPY Trade

Are you beginning to more clearly see how all of this “works together”? Do you include YOU in that equation? EVERYTHING…the market AND you MUST “work together”. If anything, and I mean ANYTHING is “out of sync”…don’t trade!

Now it is “test time”. :-)

Think back what the context (zoomed out) of the market is from that immediately previous chart.

Now…some time has passed…and we’ll say you haven’t zoomed back out in the past few minutes. Do you still remember that structure and flow of the market? Good.

Given the following chart…would you take this trade? No cheating…look at JUST this chart…make your decision — no predicting! no over-analyzing, no hesitating — QUICK — what are you going to do?

EUR/JPY Forex Scalping Entry Test

EUR/JPY Forex Scalping Entry Test

Did you pay attention to everything I’ve shown you in the Trade #1 above (the one I actually took)? What about from the other numerous trading examples I’ve posted on this blog?

What was your decision? Why?

Okay…now I’m going to show you the power you can have with the Logical Forex Phase. You DO realize this is all covered in the Quick Start Online Training Videos, right? The Quick Start Videos are included free with your trial. And, you know that I cover all of this in an entirely more intense and deep way in the Online Private Forex Workshop, right?

So…what was your decision again? Did you enter? Did you stay out?

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EUR/JPY Forex Scalping Entry Test Cheating

EUR/JPY Forex Scalping Entry Test Cheating

If you decided to enter…do you want to change your mind now? :-)

If you decided NOT to enter…is this little “hint” something you considered?

Wanna see what happened?

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EUR/JPY Forex Scalping Entry Test Result

EUR/JPY Forex Scalping Entry Test Result

Surprised? Well…there is no reason to be! The Logical Forex Indicators will give you the best possible way for you to identify high probability trades…and know when to enter, when to stay out…and you can do it without predicting, without over-analyzing, and without hesitating!

Are you willing to break out of your old way of thinkng that hasn’t been all that successful (most likely)? Yes, this DOES take a bit of work and time to adjust to a new way of thinking about the MARKET. If you’ll just go back to THINKING LOGICALLY — the way you NATURALLY think(!) — then forex scalping can be fun again…and give you those consistent profits you seek. But…are you willing to REALLY do this? Are you REALLY determined? I know some of you are. And, you know who you are, too. :-) And for your determined and dedicated efforts, I truly respect you….and will do everything I can to help you become the trader you KNOW you can be.

13 Responses to “Would You Take This EUR/JPY Scalp?”

  1. Greg says:

    Hi Ric!

    There were several reasons why I didn’t take any trade at 00:23am US/Central…either the EUR/USD or the EUR/JPY…but let me talk about the EUR/JPY as it is “closest” to looking like a setup…

    * What time is it? The European Market has not opened yet. I consider there to be two parts to the European session…the Swiss/German open, and the London open. They both present decent trade opportunities, as do market closes. Yes, there are setups outside these time periods…but the opens and closes of each major market present the best setups.

    * This “nobody trading” or “lack of liquidity”, so common outside of market sessions, is strongly evident in the tall, narrow Logical Forex Activity Lines. I simply won’t trade unless the majority of these Activity Lines and the Price Grid form a “short wide box”. Just look at some examples on your charts, and you’ll see what I’m talking about.

    * Yes, the “potential setup” at 00:23 *could* be traded by a more aggressive trader than I am. I strongly prefer to have price interacting with a Logical Forex Magnet Line. It helps me understand the market action better. But, sure, as an aggressive trader there signs that would allow you to enter…but then again…look at that Logical Forex WatchDog…he went from yellow to blue, right about at the “decision point”…with the blue telling you that the WatchDog just doesn’t consider this a good setup any longer. I teach how to trade all different styles of trading in a Workshop. It all depends on how we determine your TRUE trading style to be.

    * The first things I’ve mentioned here were plenty for me to NOT be trading anything at 00:23am. But, had I been looking then, I would have zoomed out to see the market structure and flow. The first thing I notice is that price is basically “trapped” in a region…marked pretty clearly by the Logical Forex Magnet Lines. That give me MORE reason to WAIT for price to TELL ME what it is DOING…instead of guessing what it might do at a Magnet Line.

    Even if price goes through the Magnet Line, price STILL might “bounce back” or “do a little dance”. Remember, the Magnet Lines aren’t “just support and resistance lines”, so trading them like they are a breakout signal isn’t a good idea. Let price “do it’s dance” (which you’ll REALLY see as you get to know your currency pair)…and if price takes the direction that fulfills your setup requirements…take the trade. If price runs through the Magnet Line quickly…then enter. If you miss it, don’t be concerned, as there will be many more setups. And, if price dances around and goes the opposite direction, and you didn’t enter. it’s not fair to gloat, either. :-)

    Remember this, too…you are watching the Broker Quote Panel and seeing TRUE price activity while this is all going on. And THAT is where you get your BEST information…from the true price…and it will show you things that you just can’t see in a static chart. In other words, it helps “complete the decision making process”, because you will definitely get a “feel” for how price is moving from the Broker Quote Panel…and by “putting this all together”, you will know when to enter…and when to exit.

    Great questions, Ric! Thanks!

    -Greg

  2. Greg says:

    Howdy!

    First of all, I want you to know that I definitely appreciate is that you are “seeking” and asking me to clarify. That’s good!

    Saying I am “never clear” isn’t exactly fair to me or to you. What I write and show in the Quick Start Online Training Videos, and especially in the Private Workshop seems to be clear to a fairly significant number of other people, but I do understand…we are all different in the way we interpret things and understand things.

    And…THAT is why we MUST “bring oneself” into the picture. It’s your mindset, and how you have “programmed it” that must be put all together for ANYTHING to make sense…whether that’s Logical Forex or any other system…or even swimming.

    Huh? Swimming? What does that have to do with anything?

    Well…it happens to be a great example of many things. Perhaps this will seem an odd thing to pair with you statements/questions…but let’s give it a go, okay?

    Take a look at this…here is some “confusing words”…where true “professionals” have taken a shot at defining and describing swimming…

    From Webster’s Dictionary at http://www.dictionary.com or http://www.m-w.com

    1. the act of a person or thing that swims.
    2. the skill or technique of a person who swims.
    3. the sport of swimming.

    Well…that’s nice. A bunch of self-referential terms. Not very helpful.

    Let’s look at the verb…

    1. to move in water by movements of the limbs, fins, tail, etc.
    2. to float on the surface of water or some other liquid.
    3. to move, rest, or be suspended in air as if swimming in water.
    4. to move, glide, or go smoothly over a surface.
    5. to be immersed or steeped in or overflowing or flooded with a liquid: eyes swimming with tears.
    6. to be dizzy or giddy; seem to whirl: My head began to swim.

    Oh my! More babble…AT LEAST IT IS TO ME!

    Consider this..if you already know about “swimming” or especially if you already ARE a swimmer, you will have a reference to appreciate all of the words. I don’t know enough about “swimming” to disregard the words. They likely are “good enough”…they are in the Webster’s dictionary, aren’t the?

    For more fun, look up “swimming” on Wikipedia or Britannica.com or elsewhere…and again, unless you have some context of swimming…and better you, unless you’ve actually done it…these words they use are very unclear…AT LEAST THEY ARE TO ME.

    I can write all day long about swimming…create thousands of pages of tightly written eloquent text. I can produce some beautiful and very “precise” photographs and diagrams of swimmers, of how they are swimming, and even maybe some step-by-step process about how to swim. I can make some really great videos to further enhance a person’s understanding.

    But…is that enough?

    Did Michael Phelps, the world record Olympic champion swimmer get as good as he is by reading books or blogs, or studying film or videos? Surely he did all that…but those things were simply not enough to allow him to accomplish what he did at the Olympics.

    Somewhere in his history, he made a determined effort to JUMP IN the pool and experience it. Obviously he “found something”. His “style” is NOT like everybody else’s obviously. He has put in the work, for a long time, and is reaping the benefits.

    This is true of ANYTHING we “try”…and maybe even MORE true for us “logical, logical, logical” people, who THINK we can just instantly figure it all out. Even when trading…it is still difficult! Why? Because the market is made up of PEOPLE. It is not a “clean” process nor a math equation. If it was, there would be hundreds of perfectly behaving automated trading systems…because there are hundreds of people like yourself who probably have the skills to “program” something automated…but it’s not quite that easy since *people* make up the market.

    So, what we have to do is…give the market a structure. Something that we can interpret and hopefully “see” the flow of the market. Something that will help us make quick decisions. And, that is what Logical Forex provides for you.

    Just imagine Logical Forex being similar to a “brain wave monitor”. Compare that to how a medical doctor might use a similar instrument to HELP the doctor “interpret the situation” that the patient is in. The “monitor” (or the “indicators”) do nothing more than help GUIDE the doctor in the diagnoses and plan of action. The monitor does NOT tell the doctor what to do. I simply would not trust a doctor who put all of THEIR trust in that “monitor”. I want them to *interpret* what they see…given the ENTIRE context of the situation…the personality of the patient…their lifestyle..their behavior patterns…and so on.

    Now, apply everything I just said to “the market”. If you find that too elusive or subject or confusing, I really do understand. But, I also believe that if you will JUMP IN and SWIM and not just “look at the pictures”…everything will be MUCH clearer to you. And, should you want to “go to the next level”, like Michael Phelps did when he decided to engage the help of a professional, he made enormous progress. But, again, Michael ALSO had to make sure that “the system” and “the style” of his “helping professional” met HIS needs. Not just anybody would have been the right match for him.

    And…isn’t this true of ALL professionals?

    What I’m telling you in “long form” is that your sincerity is obvious. Something, perhaps it’s my inability to describes clearly to you (and likely even to others) that keeps you from Jumping In. But, $28 USD, that’s 2.8 pips on 1 full lot EUR/USD trade…what is holding you back? Could it be NOT being able to “bring oneself” into the picture?

    If it works for you…even has indications that it MIGHT work for you…can you take the next steps? Can you be like Michael Phelps, and like him in swimming, you become the best trader by applying all that you know already with somebody who has already “been there” and is “DOING that”.

    If it doesn’t work for you, that’s okay, too. You’ll be out a little money $28), and some time and effort…but you WILL gain SOMETHING from this. Of that, I am certain.

    Now…just for fun, I’d like to leave everybody with a little “puzzle”. I have mentioned elsewhere that I have had a very long career in the business and technical world. I have done a LOT of computer programming. So, let’s try this…

    What does this program do?

    =====


    do {
    c = (!i||i%(~(0433-0x25)&8)==0)?s[i]-040:s[i<<k-1];
    putchar(c);
    } while (i++ < 12);

    =====

    Hideous, isn’t it?

    Even if you are a programmer, it’s going to take you some time to “figure it out”.

    And, even if you do “figure it out”…you may be able to describe HOW the program operates…but you still will not be able to tell me what it does!

    Why?

    You are missing some vital context.

    Here…let’s put in those missing pieces…

    =====


    #include

    main(int argc, char **argv) {

    int i = 0;
    int j = 0x40;;
    int k = 1;
    int c;

    char s[20];
    char x[20];

    strcpy(s,"logical forex");

    do {
    c = (!i||i%(~(0433-0x25)&8)==0)?s[i]-040:s[i<<k-1];
    putchar(c);
    } while (i++ < 12);

    }

    =====

    Even that doesn’t help all that much…does it?

    There is LOTS of “noise”. Things that don’t need to be there that are. Things that need to be there, but aren’t expressed in a clear way. Lots of conflicting data.

    So…do you know what the program does?

    It does this…

    It just prints…


    Logical Forex

    That’s it.

    What else it does is simply capitalize the L and the F in “logical forex”.

    A simpler program may have contained something like this…

    printf(“Logical Forex”);

    or maybe even

    puts(“Logical Forex”);

    Again…even if you’re a programmer…this is ugly stuff!

    So, what does THIS have to do with forex trading?

    Awwww….c’mon…you see it, right?

    That “hideous program” is what you see when you look at the market “blind”…without training…without determination…without a common vocabulary…without a real experience.

    The market is just a bunch of gibberish. Logical Forex can change all that, if you allow it do so for you, to making that program something as simple as — puts(“I see the setup now!”);

    And, what Logical Forex does is take that “hideous program”…the unstructured forex market data…and shows you the precise places to focus your attention…and take action.

    You can stare at the water and not jump in…or start at that hideous program and remain intimidated by the weird “language” and odd/imprecise method of that hideous program…or you can just accept the puts(“I see the setup now!”); after some determined practice…and maybe, just maybe, all these words that seem like babble to you now will have a profound impact on your forex trading…and maybe even more than that.

    I really does take putting your ENTIRE BEING into forex trading to be successful…your right side “picture brain” that is intuitive…the left side logical brain that is the thinker and analyzer and predictor (and the thing that makes us hesitate)…and “wiring our eyes and brains” to our “trigger finger”…so that we can trade freely without stress. What Logical Forex does is helps you tie all of this together into a complete “package”…within “oneself”…if you will allow it to do so.

  3. Greg says:

    Thanks for your 4.2 pips, 4x-Mojo. :-)

    Something for all of us to consider (me too!)…

    Logical does NOT mean Mechanical.

    A Process does NOT produce nor guaranty a perfect series of results.

    But, without the Logic, we would have chaos.

    And, without the Process, we’d always be guessing.

    Any Process will always need Logical adaptations to handle the “laws of nature”.

    Consider a plant that manufactures light bulbs, a seemingly simple product. Metal. Glass. Filaments. Gas. Molds.

    Intelligence sees ways to combine everything, all of those “elements” into a useful product, that light bulb. Logic produces the repeatable process of putting these things together consistently. Things change…shipments of necessary “elements” are late. The robot assembler parts break…and more unpredictable events occur. Left to itself, the entire “logical process” will shut down. The robots and the scheduling computers all go into a “wait mode”, until a Logical adaptation is applied by an intelligent human. Only then can the Logical process continue.

    Humans aren’t always logical.

    Forex is made up of humans.

    Intelligence sees ways to combine everything, all of those “elements of forex” into a useful action, that profitable trade. Logic produces the repeatable process of putting these things together consistently. Things change…news events happen, prices spike, and “elements of forex” don’t always behave like we think they should. Left to itself, the mechanical process will “shut down”. The automated robot systems break and produce big drawdowns (and so do traders who mechanically “click by a fixed set of rules”). The forex robots and the “mechanical traders” all go into a “wait mode”, until a Logical adaptation is applied by an intelligent human who can “see everything”…the logical side…the intuitive side…the physical side. Only then can the Logical trading process continue…and profitable trading actually happen.

    -Greg

  4. Jimmy Y Yang says:

    I thank Mojo for his contribution. 16 hours of replay to get to the system is no child’s play. that 16 hours means internalising the entire thing and means sweat and some form of PDF: patience, discipline and focus.

    make no mistake. I am no logical whizkid who is booking tons of pips a day. I still have a lot of replaying to do, and my effforts are nowhere near 10% of 16 hours. but since scalping is highly brain intensive, and partly money intensive( u need to play it with couple of standard lots to make money with 6 pips like greg did on friday 31st july), it stands to reason that one would have to invest tons of time in practicing.

    On another side, Greg seem to have the price panel on fxcm or his platform pretty keenly. when price stalls on the tape, his panel, he is quick to exit even tough price may not have crossed the forex flows. Again, this u will get from 16hours of replay. U will that extra 6th sense to know something is amiss and u need to book what’s on the table to keep it.

    of course, what worries is that the July blog wrtings seem to be repetitive in terms of Greg’s state of mind. it always says yeah i am really tired or tired this or that.

    While I have pretty much great respect for the way Greg does his stuff, i agree with some of the posters that once in a while, Greg needs to do a live recording. Anyway, he watch 1 chart with few indicators and really taking a 5 min shot of a trade shouldnt be something that labour intensive. Even if such recording of trades r done in the member’s section, it would avoid each person spending 16 hours on the replay to reinvent the wheel. That, in my view, would be logical. Just record your toughts and actions as u take a trade, post it in member’s section once a week, and that would be gr8 value for the logical traders.

  5. Greg says:

    Hey “Jimmy” — it is great to see you here again!

    If it helps anybody with perspective…I STILL practice a minimum of 2 hours every Saturday. Does Tiger Woods still hit golf balls? Does a professional musician still practice all the time? Absolutely! ALL profressional do this…and all of us who use Logical Forex are the same. We are truly dedicated to becoming the best traders that exist (even BETTER than “we can be”).

    How many hours do you think I’ve put in to Logical Forex? :-) Now, I ONLY say that to give you all some perspective…it didn’t “just happen” for me…although pieces did fall into place for fairly regular “aha” moments. But, I’ve been able to accomplish the things I have *because* I am determined and focused…just like most of you are too. It WILL come together for you/just about anybody(!) as long as you continue with your determined efforts…and stop “seeking the Holy Grail of Trading”. So, like in the case of Jimmy…I *know for a fact* he has INCREDIBLE determination…and he WILL “get it”…and likely “sooner rather than later”. No, not “all” of “it”…but certainly enough to begin a profitable journey.

    Now…I do want to address something that you mentioned. I am smiling through gritted teeth.

    You comment about my mentioning several times over the past couple of weeks.

    First, I don’t lie. Second, if you notice, I use these “tired” postings as a form of a lesson. There are things buried in those posts that WILL help you in other ways that might be obvious. See if you can correlate “tired” with the OTHER things that I post.

    But…I want to ask everybody a question, or those who have just taken those “tired” postings as a simple literal post.

    Here’s the question…

    You KNOW I listen to you.

    Have you considered that I might…I just might be working on implementing some of the things that a few of you are asking for?

    It may seem “easy”…but there are enormous responsibilities and demands that are associated with running a web site, working with people on getting started, handling the almost constant support tickets, working with dedicated trades in a Private Workshop (that sometimes last 5 hours) and so on. And, somewhere I have to find time to continue trading…and even maybe get 2-3 hours of sleep a “night’. (No, I’m NOT exaggerating.) Have you ever noticed when you open support ticket…that no matter what part of the world you’re in…you often get a response from me within a few minutes?

    In fact, I’m so overwhelmed, that I have asked one of my long-time clients (and a DETERMINED and dedicated EXCELLENT Logical Forex Trader) to come on board and help me with a few things “behind the curtain” for a while…but you may see him appear here and elsewhere from time to time too.

    There is a LOT of activity and things being prepared for release….far beyond what you might think is going on. And, yes, I truly “hear” EVERYTHING that anybody posts on this blog or in support tickets or in Private One-on-One Workshops…anywhere. If there were 10 of me, I might could respond a little faster. But, my main focus is to work with the most dedicated and determined traders…and do all that I can to help you accomplish what you want to accomplish.

    Now, me and my 9 other selves are going to get back to completing some very important things that will help you far more than “a video on this blog”. Hint.

    And…if you’re interested AT ALL in Logical Forex, I’d recommend you “jump on board now”…”TRY the trade”…no predicting…no over-analyzing, no hesitating. If you’ve been around here very long, you’ve seen prices go up regularly. That’s just simple supply and demand working. I only have 30 hours a day in my life. :-)

    -Greg

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