Posts Tagged ‘scalping setups’

Another Day – Another Forex Scalp

Sunday, April 22nd, 2012

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 ***

Symmetry

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 ***

Dance, Velocity

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 ***

Pull Back

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.

 

 

Forex Scalping like Clockwork

Wednesday, March 7th, 2012

Just like so many days, forex scalping with the Logical Forex Indicators is just so consistent and repetitive. It really is refreshing to learn something once, become very proficient at it, and then put it into practice whenever you choose to.

Here’s the trade that just occurred for me this morning.

 

*** EURJPY Market Structure ***

Symmetry, Structure

EURJPY MARKET STRUCTURE

 

It sure seems that I have been trading the EJ quite a lot lately. That’s really just because at the times I am checking my charts, I like what I am seeing better than the EU. In this particular instance, look at the symmetry that exists in price. You can see a very nice flow down over the last several hours, followed by the beginning of a climb upwards. I had no idea whether it would continue or not, but it sure was worth taking a closer look.

 

*** EURJPY Scalp Enter ***

Magnet Line, Momentum

EURJPY SCALP ENTER

 

Upon zooming in, this is what I saw. Price is coming out of some consolidation. What will happen next? Let’s see what the Indicators can tell us:

  • Logical Forex Activity Lines – As price nears the NY open, it begins to wake up. They are widening nicely. Definitely tradeable.
  • 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 starting its move upwards. The Flow Lines are opening up nicely. The Spine is fully revealed.
  • Logical Forex Phase – Tracking along very nicely with price.
  • Logical Forex Bias – Pointing upwards.
  • Logical Forex Magnet Lines – Price went through the first Magnet Line, and is now contemplating going through the next one.
  • Logical Forex Watchdog– Yellow.

Given the long move down and the way that price went through the first blue Magnet Line, I did expect that if price pierced the next blue Magnet Line it would do so with momentum. This is exactly what happened.

I entered as soon as price pierced the line, fully ready to exit my trade should price come back through the Magnet Line. I should point out that the flashing broker quote panel was begging me to enter by the increased activity I was seeing.

 

*** EURJPY Scalp Exit ***

Momentum, Pull Back

EURJPY SCALP EXIT

 

As you can see, price went through the Magnet Line with much momentum. If you were watching your broker quote panel, you would have seen your P/L increase very quickly. It wasn’t until price started to hesitate and then come back down that I decided to exit.

 

***

Happy trading!

-Scott

Forex Scalping on a Friday

Friday, March 2nd, 2012

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