Scalping Forex with Camarilla pivots

Camarilla pivots or Camarilla equation method offers some new trading opportunity to Forex scalpers. Camarilla equation method is based on predefined support and resistance levels and has clear rules of where to enter, which way to enter, where place stops etc.

It looks this way:


The idea is that you are able to scalp counter trend whenever price hits Level 3. Remember to take small profits. But when price goes through Level 4 you scalp with a trend. Don't be greedy, take small profits there as well.

A bit more detailed explanation here: How to trade with Camarilla pivots.

After adding Camarilla pivots to your charts (mt4 indicator can also be downloaded from the source above), go to either 15 or 5 min or 1 min chart.
You'll notice that Camarilla pivots are not always obeyed by price. Don't worry. The main trick is not to hurry up with the entry, but rather wait for candlesticks to signal a reversal. Study some basic candlestick reversal formations if you need to.
This Candlestick reversal source may help.

Scalping with Camarilla is an option if you are up to trading a new Forex trading stuff.

As always, happy scalping!

Banks are biggest Forex scalpers

Yes, you heard it right. Banks are the most aggressive scalpers on the market that anyone else.

Just think about it, we are told that scalping is a wrong strategy, that there is so much noise in the market on small time frames that it is impossible to trade is profitably in the long run, that scalping never fits strict money management rules..

Yet, millions are spinning in the hands of skillful bankers, who enter and exit in a tight margin of few seconds, barely holding positions more than a minute.
Banks scalp heavily. Rear insiders, who saw banks' trading approach confirm in forums and private discussions that banks do scalp, and, in fact, scalping is the only strategy they use! Even when bank is losing they quickly pull all funds out and then look elsewhere for other profit opportunities to cover losses. Also banks always(!) get better quotes and thus are always few steps ahead of other Forex participants. In total sum, banks rarely lose!

Us, we struggle with long term investments, pay rollovers, get whipsaws, see winning positions turning into losers of becoming break even... Our trading experience is rich, what can we say.

Scalping is good! Not easy to master, but hard work pays of. Also among successors in Forex, there are lots of scalpers.

To successful scalping!

The best time to scalp in Forex

After studying market behaviour for a while I have noticed the time where scalping appears to be more successful.

The best time of the day to apply Scalping strategy in Forex is the opening of London session. Starting at 8:00am GMT and till 9:00am GMT Forex market appears to be more predictable, there are less whipsaws, price movements are more defined.

The two major European currency pairs - EUR/USD and GBP/USD are the perfect target for morning Forex scalping.

The opening of the London trading session is always busy, it brings a lot of participants to the market. During the first trading hour a prevailing trend is established. Quite often it is a continuation of the initial trend before 8 am.

Anyway, whatever direction Forex market chooses to trend in, it tends to follow it quite neatly for the whole hour - a perfect setup for scalping, there are often no whipsaws and a clear decent size price shifts.
All these conditions allow ideal profit potentials with minimum risks to Forex scalpers.

Good luck scalping!

Scalping by trading Forex news

There is one method know to me on how to make quick profits in Forex - it is news trading.
You open Forex economic calendar and check what news will be hitting he air today.
Then you choose those news that have a "high importance" mark on them and analyse the data ahead.



I compare Previous to Forecast numbers and make my mind. 3-5 minutes before news time if I think price will go up, I place a Buy Stop order, if I expect price to come down after Actual data release I place a Sell stop order.
So, by using Forecasts I'm able to anticipate the outcome.

But, there is another method I learned lately. It is based on the fact that not only I'm getting ready to benefit from market shifts created by news.

Before news thousands of individual traders as well as large banks and other Forex players line up to take advantage of price moves. Many of them don't wait till the last second when news are released, they take positions ahead relying on knowledge of fundamental indicators and own research of global economic figures.

So, I figured out, it would be good if an ordinary trader like me could know what positions are they taking: Long or Short. In other words, what percentage of traders are selling and how many are buying at the moment preceding the news.

As an example, let me show this source
http://forex-trading-signals.net/forex-today
which provides streaming data that tells just that. The web info and its Forex signals are free!

Enjoy Forex scalping!

What time frame to use for scalping in Forex

While scalping is possible virtually on any time (presuming that traders know where is that very gold limit which price will stumble upon) there are several commonly used time frames that scalpers use over and over again to profit from price moves in Forex.

These time frames are:

1 minute time frame - the favourite time frame for all Forex scalpers.
5 minute time frame - the frame for Forex masters, you need to have good analytic skills or a sound strategy to scalp with 5 min charts.
15 minutes - even more advanced level of knowledge is required.

These are three most common time frames adopted for scalping in Forex. However, there are other rather exotic frames some Forex brokers may offer: tick charts - 1 second, 5 second etc - these are nonsense, so don't waste your time watching them.

Then come 2 minute charts, 3 min, 4 min, 6 min, 10 min - they are so uncommon, again, don't fall for them, because you won't be seeing what everyone does.
What I mean is, say, everyone is watching 5 min charts, where there is a doji candle appears at the main support/resistance level signaling of an short term immediate price reverse, everyone will see it, but you, with your 3 min or 6 min charts won't. Thus you won't be able to react in time.

Conclusion, stick to three main time frames which majority use to make Forex analysis and scalp profitably.

Happy Forex scalping!

Recovering your account with Forex scalping

If your trading experience in Forex resulted in a loss of some good portion of your initial investment, there are two things you have to do.

First - stop trading immediately and let your mind and emotions settle down. The pause after a streak of losing trades in Forex not only heals you state, but also allows to escape market conditions that caused you to lose your capital.

After couple of days or a week look back at your system and evaluate what went wrong.
Redefine your trading parameters. Read more about Forex trading, learn something new.

That's all common sense recovery of your traders personality and fixing your working tools...

Now about actual account recovery. Will it be reasonable to return and trade long term if your Forex account has shrunk substantially? I'd say, no!
You can't afford another streak of losses. You need real profits right away. Most of us can enter a trade and make first 5-10 pips with no efforts. So, let this scalping approach be your helper for the first month. Get in, grab your dear 5 pips and get out. If you don't know the system that will allow you to scalp efficiently, spend some time researching.

You may say, that's a tough routine. Well, yes, but remember, you were the culprit of your large losses, so now it is time for a serious work. Scalping in Forex is a hard work, but it is the most efficient method to recover your thin Forex account to normal weight.

Happy Forex scalping!

Know brokers you can scalp with in Forex

My personal opinion is: if you are determined to scalp, don't be shy to ask brokers about their scalping tolerance before signing up with them.

Scalping is a great way to trade if you know how to scalp right. You would also need to find the best spread possible for the currency pair you'd like to use for scalping.
Usually traders go with EUR/USD, however if you find a good offer on other pairs why not try them as well.

Anyway, it all boils up to a particular broker that will really allow you to scalp without restricting you in any manner.

Here is a list of Forex brokers that allow scalping. Quite a good example that may help you to start with your own research.

Good luck and happy scalping in Forex!

Forex Tip - set your Stop right

When Forex traders write a set of trading rules, some of them like to determine a fixed amount of pips for their exit strategy. For example, set S/L to 35 pips. Here where a negative adventure is born.

Why would you assign a stop to this amount? Some of you may say: "Because according to my strategy plan it is safe..." This is in fact a delusion.

An experienced trader will tell you that only market can dictate rules. If you are in the market, you have to adjust to its rules.

Fixed stops are rigid, and they are culprits of early and unnecessary exits, not to mention losses.

What Forex traders should do instead of setting fixed stops:

- find logical and obvious support/resistance level;
- calculate the actual cost of the stop if placed at that level;
- estimate your target goal;
- find out risk/reward ration and whether you want to accept it;
- enter a trade or pass on.

It is that simple. From now on you may forget about your pre-defined stop rules and focus on ways to determine accurate support/resistance levels.

Clear sky and high profits!