Friday was another day of forex scalping with the Logical Forex Trading System. As I point out to many of our existing clients, the similarity with many of the trades we take is quite uncanny. If you are new to trading with Logical Forex, I do suggest that you go through ALL of the blog posts. You will pick up countless nuggets in terms of the types of trades we take, the times of day (fyi – the times you see on the charts are Eastern Time in the U.S.) and also in how we evaluate the Indicators.
*** EURUSD Market Structure ***
Market Structure showed quite a bit of northward movement, but yet you can also see the various retracements that occurred throughout. When we talk about flow and symmetry, this is what we are talking about.
*** EURUSD Scalp Enter ***
Ok, I’ve zoomed in to take a closer look. By the way, I zoom in and out by using the CTRL+ Arrow Up and Arrow Down buttons on my keyboard.
What do the Indicators tell us?
- Logical Forex Activity Lines – Still a bit smaller than I prefer, but we are well into the NY session. I expect liquidity to open up any moment now.
- Logical Forex News Alert – None showing.
- Logical Forex Flow Lines – Price is not flowing in the ideal way. Notice its’ choppiness? None of the swings are such that I would be taking too much risk. If I were to enter a trade, I’d likely trade somewhat smaller lot sizes than normal.
- Logical Forex Phase – Showing some divergence earlier, but more recently it is tracking along nicely with Price.
- Logical Forex Bias – Mostly flat here, but not conflicting with the intended direction of a BUY trade.
- Logical Forex Magnet Lines – Price was approaching a Magnet Line. Notice the tight Dance and then how it was then immediately repelled? Would it come up through with momentum? Let’s find out.
- Logical Forex Watchdog– It is barking yellow just prior to trade opportunity.
As price takes another go of the Magnet Line, it is clear from watching the Broker Quote Panel that something (or somebody) is taking Price further north. I enter with a BUY trade.
*** EURUSD Scalp Exit ***
Notice how Price did a slight pullback to the Magnet Line? As you will see in reviewing other blog posts, sometimes Price dances both before AND after the Magnet Line. If Price had pulled back beyond the Magnet Line, I would have immediately exited the trade.
In this case, Price started its’ steady upwards climb shortly after the slight pullback. As Price slowed down and then pulled back again, it was time for me to exit with some safe profits.