Posts Tagged ‘continuation trade’

Nice EURUSD Forex Scalp

Wednesday, March 28th, 2012

I was presented with a nice scalp trade right before 9:00 AM Eastern Time.

Take a look at what I saw, and ask yourself if you would have taken this trade.

 

*** EURUSD Market Structure ***

EURUSD MARKET STRUCTURE

 

Price was making its’ way down – and was just approaching a Magnet Line.

Time to zoom in for a closer look.

 

*** EURUSD Scalp Enter ***

Magnet Line

EURUSD SCALP ENTER

 

So, what do the Indicators tell us?

  • Logical Forex Activity Lines – Box-like. Plenty of liquidity.
  • Logical Forex News Alert – News occurred about 30 minutes earlier.
  • Logical Forex Flow Lines – Price is flowing down. Price is not as smooth as I would like to see. Notice how it is a bit jittery. Definitely worth keeping an eye on this.
  • Logical Forex Phase – Tracking along nicely with Price. This is particularly important on a continuation trade. If there were signs of divergence here, it would be a strong reason to stand aside.
  • Logical Forex Bias – Still pointing downwards.
  • Logical Forex Magnet Lines – Price is approaching a Magnet Line.
  • Logical Forex Watchdog– Barking yellow.

Price went through the Magnet Line with little fanfare. As it went through again, it went through rather forcefully and this was clearly appreciated on the broker quote panel.

Time to enter a SELL trade.

 

*** EURUSD Scalp Exit ***

Pull Back

EURUSD SCALP EXIT

 

Price made its way down rather nicely over a period of a few minutes, with very little hesitation. Once Price started to pull back a bit, I decided to exit the trade.

***

If you haven’t already realized it, a lot of trades are very similar with the Logical Forex Scalping System. Isn’t consistency nice?

Happy Trading!

-Scott

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Forex Scalping Profits on EURUSD

Monday, March 26th, 2012

Last week was so busy with other commitments, I didn’t even open charts one time.

Upon opening charts first thing this morning, this is what I saw…

 

*** EURUSD Market Structure ***

Upward Progression

EURUSD MARKET STRUCTURE

 

Price was – clearly – making a very long upwards move. Right around the time of opening the charts, it was stuck near a Magnet Line.

Time to zoom in for a closer look.

 

*** EURUSD Scalp Enter ***

Magnet Line Dance

EURUSD SCALP ENTER

 

What do the Indicators tell us?

  • Logical Forex Activity Lines – Very wide. Plenty of liquidity.
  • Logical Forex News Alert – News occurred about 20 minutes earlier.
  • Logical Forex Flow Lines – Price had a large move upwards. More recently, it is coming out of some consolidation, and approaching a Magnet Line. It is now deciding whether to continue upwards, or start its descent down. The Flow Lines are opening up. 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. If there were signs of divergence here, it would be a strong reason to stand aside.
  • Logical Forex Bias – Still pointing upwards.
  • Logical Forex Magnet Lines – Price is approaching a Magnet Line. It made one attempt to go through. If it goes through again, with velocity, then I will enter the trade.
  • Logical Forex Watchdog– Barking solid yellow.

As Price attempted to go through the Magnet Line this time, there was velocity as shown on the broker quote panel. It was enough of a reason for me to enter with a BUY trade.

 

*** EURUSD Scalp Exit ***

Pull back

EURUSD SCALP EXIT

 

Price continued up for several pips before even the slightest hesitation. Given it was such a long move up initially, I was convinced that any further momentum upwards would likely continue a little longer. I was willing to risk a break-even trade but nothing more. After the slight hesitations, Price continued upwards for quite a bit longer. It wasn’t until the deeper pullback and the definite change in the broker quote panel that I exited my trade.

Overall, a nice trade with some healthy pips. I decided to hold on longer for the likelihood of more pips, but I wasn’t being risky about it. Worst-case, I wasn’t going to lose any more than a break-even. The upside, in this case, was very nice.

***

Even though I hadn’t traded in over a week, it’s nice to be able to step right back into it. This is possible when you pick a system and become consistently good at it. This, and more, is possible with the Logical Forex Trading System.

Happy Trading!

-Scott

 

 

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Forex Scalping a Continuation Trade

Friday, March 16th, 2012

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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