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Tuesday 20 September 2011

OrderFlow-assisted scalping

Had a decent scalping session today: took three long trades on EU towards expiring option at 1.3725, market was around 1.3680. Made +10, +20, +13 pips. Then engaged into scalping, bit of mess, lots of small winners and losers, my mistake was I started doing it too late, around mid-way through US session, and the best time is start of London. In any case did around 30 trades during the day, net result +70 pips.

Some trading rules to follow:

To do:
1. Wait for a decent trend to establish on M1, don't trade ranging market on M1.
2. Identify support or resustance on a pull back, or breakout-pull back (the best)
3. Use Order Flow and OrderBook sentiment bar to identify sentiment and pressure
4. Wait for a signal from MFSI and confirmation from PA with a price moving same way, on a decent volume at least through the half of a first M1 candle and enter
5. Decent pressure on OBFX viewer bar is a big bonus
6. Start trading option/stops run around 2-2.5 hours before expiration on counter-trend breakout/pull-back

Not to do:
1. Don't trade after 4 PM CET
2. Don't trade ranging market and indecision
3. Don't trade against immediate trend and H1 trend if present
4. Don't trade against an expiring option or noted stops cluster

2 comments:

  1. You need to check your comments, I have a couple of pieces of information that might be of use to your efforts.

    ReplyDelete
  2. Ok I will PM you my email addy on FX traders

    ReplyDelete