Shin Kaizen.
Posted: Mon Feb 21, 2011 1:32 am
much of the knowledge related to trading can be found throughout kreslik. it might seem too simple that many often ignored and it might also seem too hard that people don't pay attention. the purpose of this thread is to take ideas and really apply them or combine them with your current trading method (if you don't have one you really should do your homework and find one that suit you).
Shin Kaizen.
this is not a trading method. it's merely an idea that you need to constantly improve your trading to a better level or learn new technique(s) to cope with the latest market development.
now for my extended scalp trade i take the simplest methods such like candlestick or western patterns with additional view point such as dragon33's and es/pip's or TRO's rat and then zoom out just like MO said. for example, take my last extended scalp trade...
here is what it looked like (post-trade pic)...
ScreenHunter_03 Feb. 21 00.02 by Shinobi-X, on Flickr
Mind where you are.
the extended scalp - the trade was a regular scalp trade that nearly got SL-ed minutes after entry. the SL was 5 pips. the most important factor is to know where your position sit on the higher TF (in my case i watch H1 and D1). when the H1 bar closed it formed a morning star. the pattern is not the exact same morning star that you'll find in books because you'll see variations and small differences here and there. and what's more is the position was very near the bottom of D1 candle so this also qualifies as green rat entry. when D1 candle closed it also formed a morning star (you can see my post in TygerKrane's Sema Seminar for the D1 candle). the entry for regular scalps can be from any trading method that is tuned for scalping. you just have to be there when the opportunity present itself.
ScreenHunter_04 Feb. 21 00.07 by Shinobi-X, on Flickr
Let your profit run.
this is important. the above trade resulted in 1:39.42 RR for 2% 5p SL . if your entry is located at such a great position why let the market take it to a greater height? i believe "let your profit run" has been mentioned many times before by MO, Peter Crown of FF and other traders both online and offline.
the regular scalp - this type of trade comes only after "the possible extended scalp". which means that you don't close the lowest active position, only close the second or third and so forth positions for lower RR to protect you from the possibility of the failure of the the first trade (the risk that the first trade will turn out BE). this way you will benefit on both trending market and trendless market. if the market is forming a diagonal channel (trending) you will benefit from gigantic pips from successful extended scalps plus smaller frequent profit from the regular scalps. if the market is forming a horizontal channel (trendless) you will benefit from more frequent profits from the regular scalps. so profit will come regardless of the market condition . the market SL can vary according to market conditions; some scalps can survive with 2p SL (if the broker offered very low spread) some requires 8 or 10p. RR also vary starting from 1:0.5.
it is important to note that i only use what i outlined above on EUR/USD and Alpari UK as my broker. as with anything else it might work in other pairs using other brokers through modifications. scalping involves tight spread and price feed have a great impact so the strategy might give different result on different pair and different broker.
There are ways to trade the market. if you have trade ideas or questions please feel free to post them here. Great trading method usually comes from a good discussion
Have a great trading week!
Shin Kaizen.
this is not a trading method. it's merely an idea that you need to constantly improve your trading to a better level or learn new technique(s) to cope with the latest market development.
now for my extended scalp trade i take the simplest methods such like candlestick or western patterns with additional view point such as dragon33's and es/pip's or TRO's rat and then zoom out just like MO said. for example, take my last extended scalp trade...
here is what it looked like (post-trade pic)...
ScreenHunter_03 Feb. 21 00.02 by Shinobi-X, on Flickr
Mind where you are.
the extended scalp - the trade was a regular scalp trade that nearly got SL-ed minutes after entry. the SL was 5 pips. the most important factor is to know where your position sit on the higher TF (in my case i watch H1 and D1). when the H1 bar closed it formed a morning star. the pattern is not the exact same morning star that you'll find in books because you'll see variations and small differences here and there. and what's more is the position was very near the bottom of D1 candle so this also qualifies as green rat entry. when D1 candle closed it also formed a morning star (you can see my post in TygerKrane's Sema Seminar for the D1 candle). the entry for regular scalps can be from any trading method that is tuned for scalping. you just have to be there when the opportunity present itself.
ScreenHunter_04 Feb. 21 00.07 by Shinobi-X, on Flickr
Let your profit run.
this is important. the above trade resulted in 1:39.42 RR for 2% 5p SL . if your entry is located at such a great position why let the market take it to a greater height? i believe "let your profit run" has been mentioned many times before by MO, Peter Crown of FF and other traders both online and offline.
the regular scalp - this type of trade comes only after "the possible extended scalp". which means that you don't close the lowest active position, only close the second or third and so forth positions for lower RR to protect you from the possibility of the failure of the the first trade (the risk that the first trade will turn out BE). this way you will benefit on both trending market and trendless market. if the market is forming a diagonal channel (trending) you will benefit from gigantic pips from successful extended scalps plus smaller frequent profit from the regular scalps. if the market is forming a horizontal channel (trendless) you will benefit from more frequent profits from the regular scalps. so profit will come regardless of the market condition . the market SL can vary according to market conditions; some scalps can survive with 2p SL (if the broker offered very low spread) some requires 8 or 10p. RR also vary starting from 1:0.5.
it is important to note that i only use what i outlined above on EUR/USD and Alpari UK as my broker. as with anything else it might work in other pairs using other brokers through modifications. scalping involves tight spread and price feed have a great impact so the strategy might give different result on different pair and different broker.
There are ways to trade the market. if you have trade ideas or questions please feel free to post them here. Great trading method usually comes from a good discussion
Have a great trading week!