Leaderboard

The scalping method I use was developed through trial/error. I only trade AUD/USD when it is strongly correlated with EUR/USD. you can check the current correlation on MATAF. My broker has a 1 pip spread on AUD/USD. I use Oanda charts. To get a feel for a trade, I use the 89 EMA as a long or short filter, above it for long, below it for shorts. If it’s above then I’m looking for a pull back into the buy zone which is between the 10 and 20 EMA. I like the long/short filter to be in agreement on at least 2 time frames 1m and 5m or 5m and 15m. If they aren't in agreement then price is most likely consolidating and I'll start looking for breakouts. I use these moving averages as a guide only and a quick reference to see where price is at. I’m not looking for MA crosses. Before a trade I’m mindful of where the S&R and pivot levels are, if price is near a key level 00, 25, 50, 75, how much daily range is still available, what the current active wave is using fibonacci. The other indicators on the chart: ADX, RSI, Stochastic, MACD are secondary and just used for reference. For long trades I like on the 1 min EUR chart for the ADX to be above 20 and rising, RSI above 50 and rising, Stochastic hooking up from below 20. These are all secondary and used more to stay out of a trade if not showing what I like to see. I’m mostly looking for setups on the 5 sec EUR chart which works as a lead chart. It will sometimes move a bit sooner than AUD so can give a bit of an egde into a move. The trades are taken on the AUD/USD chart. I also have a 15M AUD chart up for reference of S&R levels. I’m looking for correlation between the EUR/USD, USD/CHF, and GBP/USD. The GBP is not so important, but it adds extra confirmation when it’s moving in sync with the EUR. I’m also looking for price pattern setups on the EUR 5m and 15m charts – failure of price to make a new swing high or low, followed by a reversal. Other trade ideas include fib plays, momentum moves, MACD divergence on higher time frames, and breakouts. Mostly I watch the price action and wait for the candles to hammer out a range. I’m looking for price to show some momentum which will be evident when the candles open and close at the extreme of their ranges. I won’t take a trade on the AUD unless it is confirmed with correlated movement on the EUR and opposite movement on the CHF. I’m looking for the trade to go in my favor straight away. If the momentum dries up on the EUR lead chart then I’ll cut the AUD trade for a small profit, breakeven or worse case a small 1-3 pip loss. Most losses are -3 pips... occasionally I’ll let it run –10. Looking for 10-20 pips profit, more if momentum is strong. Hope that gives you some ideas.