Saturday, July 14, 2007

my scalping technique lesson 1

some brokers do not allow scalping - closing trade very quickly. so choosing a broker also need to consider this.

normally i scalp pair EU because of its low spread either 2 pips or 3 pips.


pair EU
timeframe m5
ADX (average directional movement index, stoch oscillators, parabolic SAR, ema 12, 144, 169)

ema is to determine overall trend. always refer to bigger timeframe to determine better picture of overall trend, yet trend is unpredictable.

candle and parabolic SAR always find each other then separate then get close again.

ADX to determine if the movement is still have energy.

Stoch to determine if the move is going to stop and reverse.

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