Scalping: Sprints in the Forex Marathon

Updated: Mar 13, 2019

Too fast it’s never meant to finish. Quick Forex Bucks Only.


It’s been a while, my apologies. I’m enjoying life away from social media. Also, I’ve been challenging myself to understand another Forex technique—that is Scalping.


WARNING: THIS STRAT IS NOT FOR FAINT OF HEARTS.


You may be wondering why the heck I keep on jumping ships. Hear me out, this is me trying to develop my Forex style. I want to be well-versed in both the long term and short term. So, I could do both depending on my mood. Yes, I’m spontaneous that way.


So far, I’ve only shared about D1 and H4. I’ve mentioned that I taught my sister a bit of M15. However, I’m not yet confident in sharing it with others since it’s difficult to put into something measurable. Recently, some Forex friends are helping me out. Thank you, Friends! You know who you are :)


Here goes:


Backstory...


There were 2 coaches with different take had introduced me to an M15 strat. One simply relies on Bar Movements regardless of the general D1 direction while the other follows the general trend with the help of Indicators such as Moving Averages. Integrating these two surprisingly does magic.


Coach A would want to find a 3-bar ascending pattern then hoping for a pin bar to form. Then, makes a SELL STOP order below the pin bar with stop-loss at 20 pips away. For BUY STOP, find a 3-bar DESCENDING Pattern then again, a pin bar. It is recommended to exit the trade once positive no matter how small. Usually, 5 pips already a good run.


Coach B would look at D1 and H4. Then, trade the direction whichever the Yellow EMA is in. If Yellow EMA has just been above Blue EMA then it is a BUY. Inversely, if Yellow EMA is below Blue EMA then it is a SELL. Remember, trade the ones that bounce from the Yellow EMA. Meaning, prices still has strength to push. NOT AWAY from the Yellow EMA as it may lose strength.


INTEGRATION

If you would notice, Coach B style is with the trend while Coach A is counter-trend. Combining both, you have that in-out strategy simply following the waves. As for me, I’ve also adapted some friends' tweaks on M15 and can go as fast as M1 (damn, I've only gone til M5).


Indicators to Guide you

  • Yellow EMA 8 (or 36)

  • Blue EMA 20 (or 100)

  • Orange SMA 200 (credits to a friend!)

  • Bill’s Fractals (credits to a friend!)


Orange SMA is the general direction. It’s pretty much how EMAs work. Whatever is above means a BUY; below the Orange SMA is SELL. There are times that the moving averages are overlapping. Ready your orders because the push is gonna be strong.


Fractals on the other hand, gives an estimate of the swing highs and swing lows through arrows. An arrow above a bar means it’s a swing high. Price will then tend to go down.


Conversely, an arrow below a bar means it’s a swing low. Thus, the price will tend to go high. Stop-losses are safe to put outside the arrows. You may hold trades that are with the trend while exit once positive the ones on counter-trend.


Other Recommendation

  • Please trade only the ones with tight pips where 3 pips as maximum.

  • We usually do this with the Forex Majors.

  • US30 and Ger30 are also good. These two are actually more predictable than the Majors. Plus, the movements give ample space to play.


Examples:

*My on-going trades here are H4-based. Hence, looking inefficient in M15.


GER30

Trading WITH THE TREND

As you can see, Yellow EMA is ABOVE the Blue. Therefore, it's mostly a BUY. Whenever a Fractal arrow below a bar shows, put a BUY STOP on the high of the previous bar or two. Stop-loss should be outside the arrow (the swing low).


If you happen to BUY on the first swing low, it would be easier to get 1:1 by the next Fractal arrow (likely the swing high). Otherwise, exit the trade once positive.


US30

Trading COUNTER TREND

One of the reasons why US30 is recommended is that it's a more obvious example of Counter-trend since there is enough space to play against the trend. The Yellow EMA being above Blue again tells us it's mostly a BUY. However, it's giving opportunities to make quick bucks thru those SELLs.


Just remember, do not expect it to go far. Exit once positive. Luckily, we have a bar that is too far from Yellow EMA which means it's losing strength. Thus, it would go back to the Moving Averages in a big enough movement.


By the way, the warning is still on. My prop died experimenting on this strategy. I'm not begging you to do this on demo first... but that's exactly what I'm saying.


Happy trading everyone!


Sincerely,

@marilesaca || Trading Kitten :3


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DISCLAIMER: As with any financial matters, PLEASE EXERCISE UTMOST CAUTION AND DISCRETION. Trading and Investing in the Forex market has risks that may not be suitable for everyone. An investor must always consider one's risk appetite and give due diligence in every financial opportunity encountered. The information shared and presented in this site are the strategies and tools that worked for the authors over several experimentation. It may OR may not work for you. Any loss experienced is solely accountable to the investor, as he/she is the account owner. Thus, risk only what you can afford. We encourage you to find your own style instead of blindly following trades. We only seek to guide while entertaining you in your Forex journey.

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