Simple starter strategy and hello

[Cyclon]

indicators and timeframe for scalping

Questions were asked about indicators and timeframe for scalping.

If you want the best indicator for this IMHO it would be a straight line.

Then which timeframe? You could use any fast timeframe like 5 minute or 1 minute.

But you use the one where your line can be applied in the following way:

Draw a trendline along an established trend.

When it has broken it for the second time, expect a little skirmish
on both sides of the line further along the line beyond where the
second break began. (This is way down in the lower right corner).

After it begins to move away from a successful test ride along
and take your quick profits.

Nothing at all wrong with scalping. In fact scalping is any arbitrary
application of some method just as I have outlined above. It has not
taken anything into account except the expectation that a trend
will not continue unbroken forever which is of course true.

Only caveat is that this is a gamble and has only a chance of yielding
a successful trade. If it works for you and you watch your risks
you have a chance of building your account in cascading successes.

It is at that point that many new traders find their most difficult
period. Usually the risks will be raised due to
impatience or 'improvements'. 8- )

Good trades to you.

Cheers,
Cyclon

 

[Cyclon]

following up

...just following up...

Here is a result from using trendline breakout with a line from the pic above.

As you can see it never made a successful breakout and instead
was more of a break-DOWN... but the trendline's significance was shown.

That can of course be used for the scalping trade as well.

Either way it moves after the skirmish along the line is usually
important for at least the initial impulse.

Cheers,
Cyclon

 

[Cyclon]

Another way to use trendlines

Another way to use trendlines...

This uses different techniques that display a convergence
of various trendlines.

The drawing methods for trendlines can become somewhat
more of an art than a science.

You'll notice that you get better results sometimes when
you don't worry about touching exactly on tops / bottoms
of spikes.

The first tip of a reversal point may not always give the best
placement either when compared to some amazing results
from using the tip before or after it and using under / over.

Mixing and matching these techniques is where it is really
interesting. It can also get confusing. So I have only included
lines in this pic which head off to the right from a bull top.

Rays coming from the prior trends would really make it a mess
but bear in mind the lines from the past because the market
NEVER forgets.

ANYHOW...

This pic shows where the trendlines come together in a certain
area and how it impacts on a trendline breakout situation
which is quite different from the first one I showed.

This is a large pic so there is no point trying to show it well here
but I have attached a full size you may zoom out and/or scroll
around in. It actually was 2385x1042 but that exceeds the limit
as I attached it and it became cut down.

CAD/CHF M30

Enjoy. 8- )

Cheers,
Cyclon

 

[vans22]

Babypips.com is a great starter Forex website. Good luck.

Hello ernest8fingers!

I have been reading a lot of guys from here suggesting about Babypips.com. I just want to know, what does Babypips have that other sites doesn't as far as fx is concerned? Thanks and happy pips !

 

[Ricex]

Hi RichardFX,

a great response to your questions from cyclon.

My advice to people new to FX is don't scalp, and before I am hailed as the anti-scalper please let me explain.

Scalping is not for novices, it involves having a great deal of knowledge of the particular market your trading in to even begin to be profitable over the long term.

It is hard work, stressful and with every trade you are exposing yourself to more risk.

It is the downfall of the novice, but attracts them like bees to honey.

Unless you have a lot of money, scalping with out is suicide and profitless, and a full understanding of how your chosen market moves, then please think about another way of trading.

If you want some action, keep your playstation close by, FX is the place to be zen not zorro.

Trust me there is nothing more beautiful than being in a trade that slowly grows in your favour with your stop trailing serenly behind....

Good luck and have a look at pivot points and see how they may help you.

 

[Pharaoh]

My advice to people new to FX is don't scalp, and before I am hailed as the anti-scalper please let me explain.

All Hail Ricex, The Anti-Scalper!!!

​

Actually, I'm not too much of a scalper myself. I prefer a trading style where I'm allowed to step away from my keyboard without worrying about missing every little wiggle of the market.

 

[Ricex]

LOL! nice one.

I do have a rather groovy 5min chart scalping strategy but it only comes out to play when the sun shines and all is good with my world, otherwise I just don't have time.

I do feel though that for beginners there are better ways to start trading rather than trying to follow a 1min chart and basically guess which way it's gonna go.

Good to meet you Pharaoh, you do a lot of good stuff on this site and help a lot of people.

Hope I can be of some assistance too.