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Now that you have opened a demo account and familiarized yourself whiy the any trading platform we would like to introduce you to the forex trading technique of scalping for small profits. If you only have small amount of time tou trade ech day,then this strategy migh be the right one for you. Evreyone will settle into their own style of trading. This technique is for traders whu like getting in and out of trades in a matter of minutes instead of hours. Stock Index Futures traders often use the 1 minute charts to enter and exit trades. Forex day trades can also gain an advantage by getting in on a move right as it happenes by waching the 1 minute charts.The type of chart set up that we use to trade the 1 minute charts is candlestick charts.
Setup up Your Charst
1.Open a new EUR/USD 1 minute candlestick chart.
2.Add Bollinger Bands set at 18,Exponential.Change the color of the middle band to bright green.
3.Add a Moving Average 3 Exponential,Close and change the color to Black.
4.Add the MACAD Histogram study ( default settings ).
5.Add the Relative Strength Index study set at 14.
6.Zoom in our to you liking.
This is what chart and studies should look like.
[You must be registered and logged in to see this image.]
The key to catching the “Micro Trends” on the 1 minute charts:
• Wait for the 3 EMA (black) to cross through the 18 Histogram to line up: Above 0 (MACAD)and above 50 (RSI) for BUY signal.Below 0 (MACAD) and below 50 (RSI) for SELL signal.
• Remember to take small profits.
• Practice this strategy on your demo account.
*Examples 1 :
[You must be registered and logged in to see this image.]
This example is on a Late Sunday Night/Early Mondey Morning EST EUR/USD chart.A good BUY signal at this time could have been when the 3 EMA crossed up througt the Middle Bollinger Band,the MACAD histogram is above zero and the RSI crossed above 50.
*Examples 2 :
[You must be registered and logged in to see this image.]
Here is both a BUY and SELL example from the Japanese trading session.Mptice how the RSI and MACAD line up in both examples.
*Example 3:
[You must be registered and logged in to see this image.]
Here is an afternoon trading example of a BUY and SELL opportunity whit the EUR/USD pair. Remember to take small profits and/or move your stops in a Winning trade.
*Example 4:
[You must be registered and logged in to see this image.]
Trade the News
Here is a great example of how you can use the 1 minute charts to trade the economic news releases. To find out when the world economic news releases are,simpley go to CNBC or Bloomberg website and finde forex news. In the above example the economic news release was scheduled for 8:30 AM EST. At 8:33 the price jumped up 20 pips. Using our 1 minute strategy along whit the news,is an effective way of scalping profits on the FX markets.
*Tip; Remember to wait a minute or two after the announcement.Don’t open a position before the scheduled time!
*Tip: There are news releases all throughout the week during the different time zones and trading sessions. This technique works well during overnight trading EST during the European and London sessions.
*Example 5:
[You must be registered and logged in to see this image.]
Notice with this news release,that the EUR/USD pair dropped over 30 pips in 1 minute ! At 8:32 the price dropped. If you can practice timing these trades they can become a very profitable tool for the trader.
Attention:
Using the 1 minute charts is fast moving . It might not be your style of trading. If you want to test out slower moving average combinations that whipsaw less ofen on the 1 minute charts, you can try these;
• 7 EMA , 18 Middle Bollinger Band.
• 5 EMA,20 Middle Bollinger Band.
• 10 EMA,20 Middle BollingerBand.
Setup up Your Charst
1.Open a new EUR/USD 1 minute candlestick chart.
2.Add Bollinger Bands set at 18,Exponential.Change the color of the middle band to bright green.
3.Add a Moving Average 3 Exponential,Close and change the color to Black.
4.Add the MACAD Histogram study ( default settings ).
5.Add the Relative Strength Index study set at 14.
6.Zoom in our to you liking.
This is what chart and studies should look like.
[You must be registered and logged in to see this image.]
The key to catching the “Micro Trends” on the 1 minute charts:
• Wait for the 3 EMA (black) to cross through the 18 Histogram to line up: Above 0 (MACAD)and above 50 (RSI) for BUY signal.Below 0 (MACAD) and below 50 (RSI) for SELL signal.
• Remember to take small profits.
• Practice this strategy on your demo account.
*Examples 1 :
[You must be registered and logged in to see this image.]
This example is on a Late Sunday Night/Early Mondey Morning EST EUR/USD chart.A good BUY signal at this time could have been when the 3 EMA crossed up througt the Middle Bollinger Band,the MACAD histogram is above zero and the RSI crossed above 50.
*Examples 2 :
[You must be registered and logged in to see this image.]
Here is both a BUY and SELL example from the Japanese trading session.Mptice how the RSI and MACAD line up in both examples.
*Example 3:
[You must be registered and logged in to see this image.]
Here is an afternoon trading example of a BUY and SELL opportunity whit the EUR/USD pair. Remember to take small profits and/or move your stops in a Winning trade.
*Example 4:
[You must be registered and logged in to see this image.]
Trade the News
Here is a great example of how you can use the 1 minute charts to trade the economic news releases. To find out when the world economic news releases are,simpley go to CNBC or Bloomberg website and finde forex news. In the above example the economic news release was scheduled for 8:30 AM EST. At 8:33 the price jumped up 20 pips. Using our 1 minute strategy along whit the news,is an effective way of scalping profits on the FX markets.
*Tip; Remember to wait a minute or two after the announcement.Don’t open a position before the scheduled time!
*Tip: There are news releases all throughout the week during the different time zones and trading sessions. This technique works well during overnight trading EST during the European and London sessions.
*Example 5:
[You must be registered and logged in to see this image.]
Notice with this news release,that the EUR/USD pair dropped over 30 pips in 1 minute ! At 8:32 the price dropped. If you can practice timing these trades they can become a very profitable tool for the trader.
Attention:
Using the 1 minute charts is fast moving . It might not be your style of trading. If you want to test out slower moving average combinations that whipsaw less ofen on the 1 minute charts, you can try these;
• 7 EMA , 18 Middle Bollinger Band.
• 5 EMA,20 Middle Bollinger Band.
• 10 EMA,20 Middle BollingerBand.
