Posts Tagged ‘Magnet Dance’

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Another Wonderful Forex Scalp

Tuesday, January 31st, 2012

I sat down at my computer a bit earlier than usual today. I had the urge to take a look at my charts.

This is what I saw…

 

*** EURUSD Market Structure ***

Decision Point, Structure

EURUSD MARKET STRUCTURE

 

Price was indeed hanging out at a very long and pronounced line of Magnet Lines. Worth taking a closer look? Absolutely!

 

*** EURUSD Scalp Enter ***

TightDance

EURUSD SCALP ENTER

 

Let’s look at the Indicators:

  • Logical Forex Activity Lines – Good, not great. Taking a trade here, especially this much before the NY Open, will likely mean the trade won’t be a quick in and out. Not everybody has come to play forex games just yet.
  • Logical Forex News Alert – No news showing.
  • Logical Forex Flow Lines – The Flow Lines are separated nicely. Everything is the same color. The black Spine is fully revealed.
  • Logical Forex Phase – Tracking along very nicely with price. No indications of divergence.
  • Logical Forex Bias – Starting to point downwards.
  • Logical Forex Magnet Lines – Price did a very nice, tight dance right on the Magnet Line.
  • Logical Forex Watchdog – Barking to take a look.

As price did its’ tight dance directly on the Magnet Line, I could have entered as price pierced through the Magnet Line. However, the broker quote panel wasn’t as active as I like to see. This also has to do with the lack of great liquidity at the moment. Had I entered, I would have quickly been -4 or so after spread/commissions. I did decide to wait for the pullback and then, as price exceeded its’ recent low, the broker quote panel became more active and I hit the SELL button.

 

*** EURUSD Scalp Exit ***

Pull back, Stall

EURUSD SCALP EXIT

 

As expected by the Activity Lines and time of day, this was not a fast trade at all. It did, however, have a consistent (albeit slow) descent. Once price started its’ pull back, it was time to hit the BUY button and walk away with my net pips.

 

***

 

What I am hoping to show you is how, in addition to just trading at market opens and closes, you can also trade Logical Forex at various times throughout the day or night. Sometimes you just need to be a bit more patient in (1) waiting for the ideal setups and (2) waiting for the trade to complete itself.

Happy Trading!

-Scott

 

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The Return to Forex Scalping

Wednesday, January 25th, 2012

Well, it’s been a full two and a half weeks since I’ve last posted to the blog. Unfortunately, I’ve been dealing with some family health issues that required my full attention. I was out of town for a while, and then playing catch up upon my return.

So, it’s been a little while since I’ve done any forex scalping. The nice thing about scalping forex is that you can walk away from it – and then return to it – whenever you want. Ah, the freedom.

Ok, so here’s today’s trade…

 

*** EURUSD Market Structure ***

Structure, Decision Points

EURUSD MARKET STRUCTURE

 

As you can see, price was flirting around with the Blue Magnet Line, at a level where it had been doing so several times before. Which way would price go, I surely do not yet know.

 

*** EURUSD Scalp Enter ***

Dance, Magnet Line

EURUSD SCALP ENTER

 

Let’s look at the Indicators:

  • Logical Forex Activity Lines – Decent. Nothing telling me to stay away.
  • Logical Forex News Alert – None showing.
  • Logical Forex Flow Lines – Price consolidated a bit and then started its’ descent upward. The Spine is fully revealed. Lines are spaced out nicely.
  • Logical Forex Phase – Tracking along nicely with price. Nothing raising any red flags just yet.
  • Logical Forex Bias – Definitely pointing upwards.
  • Logical Forex Watchdog – Barking at me to take a look.
  • Logical Forex Magnet Lines – Notice the beautiful tight dance right beyond the Magnet Line. As price started to exceed that recent high, and I eyed the broker quote panel, it was clear that something was happening.

I hit the BUY button, ready to try the trade.

 

*** EURUSD Scalp Exit ***

Scalp, Exit

EURUSD SCALP EXIT

 

This trade definitely wasn’t a fast one. In fact, it was painfully slow. Often-times when the Activity Lines are not very wide, you need to accept this. I kept my finger on the SELL button – ready to get out of the trade at any second.

Because there was another Magnet Line in close proximity, my target exit was to see if price would be repelled or attracted. Price did go through, pulling back to the line. On the next push, it was unable to exceed where price had been, so as it pulled back on the broker quote panel – i took my exit – and my pips of profit – with me.

***

How is your scalping trading going? Please let me know by posting a comment. I’d love to hear from you.

Happy trading!

-Scott

 

 

 

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Forex Scalping on NFP Friday

Friday, January 6th, 2012

Today was another day of the market moving down, down, down. On top of that, we had a very significant news announcement – the Non-Farm Payroll report.

 

*** EURUSD MARKET STRUCTURE ***

Decision Point

EURUSD Market Structure

 

The EU had clearly done another sell during the European session. Price was approaching a strong decision point. Which way would price go today?

I could predict, but with the Logical Forex Indicators – I don’t need to.

 

*** EURUSD SELL ***

Magnet Line Dance

EURUSD Sell

 

Let’s look at the Indicators:

  • Logical Forex Activity Lines – Not surprisingly, they are incredibly wide – indicating tremendous amounts of liquidity in the market.
  • Logical Forex News Alert – as you can see, the New Alert Indicator kept us from trading during the critical part of the news announcement.
  • Logical Forex Flow Lines – After a very pronounced sell, price consolidated a bit and then started its’ descent down again.
  • Logical Forex Phase – Tracking along nicely with price. No apparent divergence.
  • Logical Forex Bias – Starting to again support the southward direction of price. As the move was quite quick, it is just starting to tip down again.
  • Logical Forex Magnet Lines – Notice how price plowed through the Magnet Line the first time. Since there was no Dance, I needed to be patient upon entering the trade, or expect a pullback – which is exactly what occurred. That’s why it is always the safest trade to wait for the Dance to occur. Also, note how the thick black Spine was not fully revealed until the second push on the Magnet Line. As soon as price exceeded the first push beyond (which is when my broker quote panel started to really ‘tell’ me what was happening next) it was time to hit the sell button.

 

*** EURUSD EXIT ***

EURUSD Exit

 

This was a rather quick trade. Especially in such a volatile market, I really do only like being exposed for mere minutes. I exited as soon as price started to slow, then pull back on the broker quote panel. I cannot mention this enough – you cannot watch the chart and wait for price to show its’ pull back or hesitation. You need to watch what your broker quote panel does. That is the ONLY reality from just prior to entering a trade all the way until you exit the trade.

In this case, I was happy with my handful of pips with large lot sizes. In and out quickly, whenever price goes against me.

Happy trading!

-Scott

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