Is it possible to scalp and make a living in the markets?
Have you ever heard of Paul Rotter? Well he was an independent trader who was raking in 7 million/month scalping.
Read this interview with the infamous Paul Rotter and let me know what you think.
So it is a trend day and you were not awake when the trend started. Where do you jump in???
CCI to the rescue!
I have developed a simple system that utilizes CCI divergence, TMA bands and 13 pip range bars to trade pullbacks, allowing you to enter trades in the direction of the trend.
On the chart 1) is a bullish CCI divergence.
2) Confirmation of the trend/trade direction
3) Entry signal – piercing of TMA bands.
It is important to wait fot the the TMA bands to be pierced. If they are not pierced, then no trade.
To keep this a low risk trade – use a 6 pip stop and target at least 12 pips.
Looking at a market profile view of the GBPUSD you will immediately notice that price has been trading in a range smaller than the single range of last Friday.
The double inside day usually means when we do break out of the existing range, we could be in for some pretty big moves.
It is also of interest that today’s high was right at Friday’s VIRGIN POC and with 30 minute tweezers. That first time virgin bounce was good for about 50 pips, but never made it down to the virgin created yesterday at 1.5431. That with todays action created a virgin at 1.5479 creates a nice trading range between the two virgins
I think virgin POC’s are good complimentary indicators so look for whatever system you use to give entries around 1.5431 and 1.5479.
Trade well.
First, if you don’t know what I’m talking about when I say “Quarter Levels” then you need to go over to my good buddy Mongolians thread on Forex Factory. The thread is “Make Money Everyday: A Guide To Short Term Trading” – brilliant concept.
I have incorporated the quarter levels into my trading and am amazed at how price respects these psychological support and resistance levels. Mongolian advises in his thread to just use the levels to scalp 12 pips all day long, which I have done and I must report is very doable. However, I never being settled, have been tinkering with a way to stay in trades longer…so I have been toying with a few indicators to the pure price action method Mongolian uses.
I have been playing with a system called “Forex Gold H1″ on a 5 minute chart. I have not tested it out with cold hard cash so I cannot offer you anything other than my observations.
Thus far, it seems pretty promising.
Own a bank stock – any bank!
Here’s a little overview of the year-to-date performance of some of the major global banking stocks on December 29, 2011, before the opening bell:
BofA: -60.38%
Citi: -44.76%
Goldman Sachs: -46.41%
JPMorgan: -23.03%
Morgan Stanley: -45.24%
RBS: -50%
Barclays: -34.32%
Lloyds: -63.02%
UBS: -29.33%
Deutsche Bank: -28,55%
Crédit Agricole: -56.04%
BNP Paribas: -37.67%
Société Générale: -59.57%
These are just some of the Too Big To Fail institutions. And while your governments have enough faith in them – or so they want you to believe – to prop them up with trillions of dollars of your money, investors are fleeing them, even if they can expect them to be propped up further.
Read more: http://theautomaticearth.blogspot.com/2011/12/december-29-2011-trends-2012-end-of.html#ixzz1hz87rp4P
After getting the custom skin of MT4 (from the previous post) up and running you may have a hard time figuring out where to find the indicators folder.
Here is a short video that shows you how to “show the package contents” and reveal the hidden folder:
Ok Mac-fanatics rejoice! This is the easiest and most effecient way to get Metatrader running on your Mac without the need for bootcamp, fusion or any other virtualization software and without having a copy of windows.
Everything you need follows:
thenYou should be up and running in under 10 minutes. Let me know if you have any problems.
Just a couple of examples. In the first one during the London session price actually dropped about 80 pips from the pivot. I am a scalper so I only collected 5.
In the second image, you had to be quick as only 8 pips were offered. I have a take profit of 5 for this trade so it worked out well for me.
Drum roll please…..
Really there is nothing earth shattering here. I was talking to a trading buddy of mine and recalled my most profitable trades were done using 4 hour pivot points and… oh yeah thats it!
The strategy is so simple that many will just brush it aside, but give it a try and you will see how profitable it can be with minimal risk. All you do is pull up a naked chart – any time frame you like (or this example I used 1 minute) and plot the 4 hr pivot points. You can do this
in a spreadsheet, by hand or using an indicator (send me a message if you need help here). Once plotted, enter your trades. We will be fading the market so for short entries enter a limit sell 1 pip below the upper pivot and for long entries enter 1 pip above the lower pivot. For example in the chart to the right R1 is 1.3833 so your order should be to sell at 1.3832. Set a stop that you can live with and take your profit after a 5 – 12 pip bounce.
There are instances when you can hold this for a swing trade, but that requires a little more homework and risk so i’ll table that for another day.
In my opinion pivot points are not magic lines but rather levels that so many traders use that they become self fulfilling levels of action. At the end of the day I could care less, I just want to see green on the last line of my brokerage statement and I hope you fell the same.
The key to this technique is to get comfortable with it and add size as you see how predictable the market is around pivot levels.
Give it a try and please comment on how it works.
Today’s price action is closing in on an inside day. No new breakouts as .price was contained within yesterdays trading range. This usually means that the market is consolidating, but I also like to think of it as an opportunity for a longer term swing trade.
An inside day is a signal to get ready for an explosive move. The direction of the move is unknown, but that really doesn’t matter. What matters is that we prepare to take action once the market tips it’s hat.
Since we have not seen 3700 since September 21 – there is a low risk entry short if price tests that level again. If price can get a 30 minute close above 3700 – then I would look for the first pullback as an opportunity to get long with no resistance until 3800, and even that is minor.
As stated earlier the downside offers a simpler low risk entry at the round number (3700) – with the first real support being almost 150 pips away. If you miss the 00 entry look for pullbacks at the quarter levels – preferably 75 or 50.
Remember to have a roadmap, but to be open to detours.