Monday, October 17, 2016

Forex Scalping l Can trader make a living scalping ? Guide to Forex Scalping

Forex strategies ways to find imbalance on a currency chart

It has been a fact that people often look for mechanical system for day trading and scalping for quick profits but still they don't really know the way to do it and indicators used for scalping and it has been pretty difficult to select the pairs we can scalp and enough profits from it to continue to depend on Forex for a day living.

Build your system for Scalping in Forex else Practice this system for months to see its consistency

Forex Scalping is perhaps the most widely used term in financial market because there are not too many trends in stock and treasury market on consistence basis but there are few pairs specially exotic currency that really moves a lot on intraday basis for trader's benefit and that is the real benefit of working in Forex market rather than any other stock or financial Market in the world.

Forex Scalping needs combination of RSI EMA and Fibonacci

Checklist for the system. Plot a 14 period RSI on daily Chart
Look for direction above 50 or below 50 for the trend.
Also plot 50 period EMA on the Chart
Move to 5 minute chart.
Check any movement that is above 40 pips
Trend has to be clear with RSI Value
Now apply fibonacci to this 40 pips move as shown in the below chart.
Now wait for price to correct 61.8% to 50.0% but not below 50.00 as I don't consider there could be any institution driving price that low to sell. When Price retrace to the mentioned fibonacci number wait for the price to break below 23.6% . Also check that IF price break below 50 period ema and retesting the EMA (real bonus if EMA and fibonacci provide cluster or confluence) Last point check RSI and set stop above 78.6% which should be below 50.

Live trade example 16th October 2016 Gbp/chf

s&p 500 index looking to start another down leg towards 2072 l U.S Index update

Forex strategies ways to find imbalance on a currency chart

World Stock market are on a verge of falling over, and S&P is no different. Because of the fact US is facing assembly election next month and also federation chairman Yellen and his fellows looking for series of rate hikes next year. So, that all stands for strength in U.S dollar and weakness in stock market and I am still looking for test of the 2162 area,and then we could see decline towards 2072.

S&P and US stock Market hesitant of any bullish rallies ahead of presidential election

We have seen lot of sideways movement after we broke through strong levels and IF there are rallies then those followed by extended sideways correction and the area 2114 is much strong level both ways and any rejection here and there we could see strong decline ahead of the election in U.S. Reason being I am favoring bearish price action In S&P Index is that price has not correct too strongly after the rallies from the bottom of 1900 level and records high does not seems to be getting enough cash flow and market is quite hesitant ahead of election and that is why market can still be looking to get their funds out and spend in U.S dollar or any other liquid assets like gold and crude or even treasury bonds.

Saturday, October 15, 2016

Us dollar future looking for breakout l Spx look to start its bearish rally

hi readers, last week we witness some strong rallies in the opposite directions both by Us dollar future and us index spx and it remind me of old days when fed officials want strong dollar at the cost of cheap stocks and hence we could see start of some strong year end rallies that might continue next year as well.

Us dollar future looking to break as talk of rate hike in december fuel the market

Talking of us dollar, we see a strong spike by us dollar which could be ready to break the recent one and half year sideways correction. keeping in mind last federation meeting was quite crucial as all the officials thinks of december rate hike is on the cards most probably and this lead to rally in us dollar futures immediately and since then there is no stopping as now we could see a rally towards multi year high of 102.00

How traders should look to trade pullbacks

Forex trader eyeing this rally and looking for small pullbacks and it could be test of strong trading levels which hold previous rally or pullbacks to ema and small risk opportunities which can give way to strong rallies in coming future.

Speaking of Us dollar one can track the main driver of us dollar future i.e Euro dollar and as we break below 1.1040, and now we can look for retests and rejection of this level and keeping in mind the risk involved we should keep the stops very small and look to drive the most part of this downside rally which is eyeing 1.0750

Forex traders should be good enough to manage risk in volatile market

As a forex trader, we should be ready to take this type of risk and small risk trading strategies should be in our database as we must test them from time to time and make use of them when we need them most.
Technical trading is the way we can control our emotions and even in this type of tense situations where moves are happening so fundamentally, we should rely on our trading strategies for entry and risks, because rallies or statements can be revrsed anytime and we can caught on the wrong side of the market, so preparing good money management strategies to tackle with risk is a quality of a good trader.

Pullback trader should look for caution retests at historical levels and rotation centers

I have prepared few checklists where I look to spot currencies which are trending strongly in the one direction and then I start looking for possible entries with small stop and it can be a historical level, rotation center, fakeout or even test of strong supply level with caution or with compression.

Forex trading is about timing and news can never help you ride strong rallies and news cant be a big driver all the time and the one very good example is canadian crosses which are in strong downtrend specially gbp/cad and also usd/cad which has corrected from 1.4700 to 1.2600 in no time even after strong bullish momentum during past few years. Reason being the crude which has recoverdd 50% from its low. I beleive nlw its time foe euro crosses to come under pressure soon, specially eur/cad which has somehow manage to avoid its bearish startoff. Now I would be watching the retest of 1.4730 level and from there I would like to see new downside presure towards 1.4100 level and I would update the blog with the charts of eur/cad and spx during this weekend.