"successful scalping" - like child's play to pull the commercial deposit
"I just play the market the way it’s showing me it wants to be played. Recognizing the patterns is a key to scalping."
"Posted by admin or wrong, this is just how I do things and it works for me with much success…
Scalping The Market…
I don’t really like the word “scalping” but it’s widely known,
so I’ll use it for this purpose… I have my own set of rules that I follow when I’m going to scalp the market. When I break these rules, which happens on occasion for lack of discipline, I find myself in a bad situation.
1.Timing - the time(s) I choose to scalp are very important. Generally, I’m not going to scalp leading up to Frankfurt/London/NY opens. Too much can happen when those markets open that could potentially move the market away from my position. Also, I’m generally not going to scalp leading up to the release of a major economic report (NFP, ISM, Home Sales, etc.) I choose my time(s) to scalp when there is little chance of the market making a big move.
I think Asia offers some of the best scalping opportunities because unless China or Japan is going to make a major currency reserve move or do some profit-taking, the market will be in a fairly predictable range in which to scalp.
That being said, I do scalp Europe and NY sessions when I see certain patterns that give me certainty the market is trading within a range and I will not be in a risk situation by picking off 10-15 pips at a time.
2.Establishing the range (top and bottom) - before I even take a scalp trade, I establish the range. If for some reason I cannot establish a range for whatever the reason may be, I’m not going to scalp, plain and simple. To help me establish a range, I typically use a 5-minute, 10-minute, 30-minute, and 4-hour basic candle chart. I absolutely, positively do not use any technical indicators or technical analysis on my candle chart. I simply use the candle chart as a tool that gives me a visual look at the range the market is in. I am a visual person and it helps me to visualize the market via the candle chart.
Through the chart, I look for the pattern that the market has formed, I determine the top and bottom of the range and simply trade within that range. I usually only scalp the EUR/USD and I do not scalp going both long and short! Typically, when it hits the bottom of the range, I take a long, close it out at the top and wait for it to go back to the bottom again before I take another long. I just play the market the way it’s showing me it wants to be played. Recognizing the patterns is a key to scalping.
Patterns… for example, around 3:45 p.m. Tokyo time, I have seen the EUR/USD make a 5-15 pip move up almost like clockwork. Why does this happen? I have no idea, I don’t know what goes on in Tokyo at that time to make it move, but I’ve established this pattern and will capitalize on it if it’s there.
3.Price movement tracking - it also helps me greatly to track the closing price of the EUR/USD every half hour on the hour. For example, if it’s 10:59, I am going to watch for the sell-side price that is on my platform exactly as the clock strikes 11:00. I keep all these numbers written a little notebook and also keep them in an Excel spreadsheet. At our live seminar I believe Cisco may talk further on how this helps us make market predictions. Unfortunately, I cannot use this format to explain this predictive process in much more detail, but I would encourage you to keep these numbers as well as you will begin to see patterns that will help you make predictive trades.
Also, I never have more than 1 or 2 scalp trades open at any one time and I never risk more than 4% of my margin at any one time on scalp trades.
To sum it all up, for me, successful scalping is all about timing, establishing a range, and tracking price movement ... I am a strong believer in this style of trading in addition to swing trading because at the end of the week all those 5, 8, 10, and 12 pip trades really add up to some nice profits and nice ROI. "
http://www.fxiguidebook.com/scalping-the-market/
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