Forex Scalping on a Friday

This week has been a non-stop sort of crazy-busy week. I haven’t carved out much time to scalp using the Logical Forex Indicators – until now.

When I sat down at my computer this morning, this is what I saw.

 

*** EURJPY Market Structure ***

Consolidation

EURJPY MARKET STRUCTURE

 

You can see that price had been making its’ way down for quite some time. It will move down, then take a break, then move down again. Price was starting to approach a Magnet Line – causing me to want to explore a bit further. Would price continue down, or start to turn around its’ downward ways?

 

*** EURJPY Scalp Enter ***

Magnet Line Dance

EURJPY SCALP ENTER

 

Let’s look at the Indicators:

  • Logical Forex Activity Lines – As price nears the NY open, it begins to wake up. They are not the size I usually trade, but it is also a bit early still.
  • Logical Forex News Alert – No news showing.
  • Logical Forex Flow Lines – Most recently, price made its’ way down, then consolidated (notice the stacking yellow) for a while, before taking another try and going further down. Price is flirting with a Magnet Line. The Spine is not fully revealed, although all Flow Lines are showing Red.
  • Logical Forex Phase – Prior to the trade, there was a real divergence. Notice that shortly after, price went up and consolidated. Immediately prior to the trade, the Phase is tracking along nicely with price.
  • Logical Forex Bias – Neutral.
  • Logical Forex Magnet Lines – As in last week’s trade, price had not been doing very tight dances around the Magnet Lines. This sometimes happens. When it does, it cause me to be more conscious of what I expect Price to do when it comes time to enter a trade.
  • Logical Forex Watchdog– Yellow

This was not the absolute most perfect setup. The Bias was not fully decided yet and the Activity Lines weren’t ideal. Yet, seeing that price was coming out of some nice consolidation and was approaching a Magnet Line, I was willing to TRY the trade — but with smaller lots sizing than I use on more high-probability trade setups.

So, I enter as soon as price is a pip or two beyond the Magnet Line.

 

*** EURJPY Scalp Exit ***

Groove

EURJPY SCALP EXIT

 

After I enter, my exit plan is to get out if price pulls back above the Magnet Line, or once price breaches the Groove.

Price continued to slowly make its’ way down for many minutes. There were several hesitation points, but no significant pull-back to cause much concern. As price crossed into the Groove, it was time for me to make my exit.

This trade is another example of how you can get more than a few pips from a scalping trade. It’s about analyzing the data, making a decision, and being willing to accept a mistake should the market turn against you. That’s how you stick around to see another trading day. No big losses. Steady, incremental gains. Trade smart – stay alive.

***

Happy trading!

-Scott

 

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