Off Hours Scalping Strategy Template
Off Hours Scalping Strategy Template
Off Hours Scalping Strategy Template
SCALPING:
Cheat Sheets
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The techniques you’re about to discover and the “cheat sheets” that I have
assembled for you are going to begin to crack this “code” that few traders
even know exist. Having this understanding will put the odds back in your
favor, and give you the control so that you can consistently trade the market,
while avoiding the typical challenges that scalping brings.
Below we are going to look at five different approaches that will immediately
help you stack your deck in your favor, and begin to crack the code of the
Forex markets... so you can see them, and even begin to trade them, as I do.
CHEAT SHEET #1
Counter-Trend Scalping During Choppy Markets
Most traders don’t think about scalping during choppy, ranging market
conditions, but this is one of the best and most consistent scalping trades I
take.
The first thing that you need to ask yourself when scalping choppy markets
(a.k.a. counter-trends) is:
When are choppy/ranging markets most likely to occur?
The best times that I have found to scalp the market using counter-trend
strategies are:
• Off-Hours Trading (Specifically between 3:00pm and 7:00pm EST)
• Pre-News Trading (12 to 15 hours before a large news announcement)
These time-frames may seem a bit odd at first glance, but if you think
about it a little more closely they makes perfect sense!
Lower market activity typically results in choppy markets. And since choppy
markets are what we’re after, then off-hours trading (i.e. when the banks are
closed) and pre-news announcements are some of the most predictable times
of “chop” because these time-frames have some of the lowest trading activity
of all!
We’ll talk more about pre-news trading in just a bit, but first let’s talk about
scalping during “off-hours”.
Off-Hours Scalping
Between 3:00pm and 7:00pm eastern standard time is when all the
world banks are closed. The U.S. banks are closing their doors and the Asian
banks have not yet opened. This is a great time to scalp the market using a
counter-trend strategy, because no larger banks are moving money (i.e. the
markets) at that time.
Without the banks around to move the markets, the currency pairs will
become “choppy” and begin moving sideways in a fairly tight range. And it’s
these tight ranges that are the ideal scalping environment...when you
know what you’re looking for.
The screen shot below shows the low volume 3:00pm and 7:00pm
eastern standard time in the EUR/USD on the hour time. As you can see, on
both days the market moved into a choppy, counter-trending mode because
the banks and other institutional traders weren’t around to move the markets.
To scalp the pre-news announcement, we need to first get the “Dead Time
Range” midpoint we established back in “Off-Hours Trading Strategy #2”,
because the “Dead Time Range” for off-hours trading can also be used to
predict the range for the 12 – 15 hours prior to a news announcement (since
it’s a type of “Dead Time”).
Once the “Dead Time Range” and midpoint have been established, we’ll use
the same strategy discussed in “Off Hours Trading Strategy #2” to trade the
pre-news announcement.
• Go LONG if the price is below the mid-point the first bar after 5:00pm,
and...
• Go SHORT if the price is above the mid-point the first bar after 5:00pm
Trade on the 1 hour chart and look to pull 10 – 15 pips using a 1 : 1 risk to
reward ratio. (Actually, since the range is a bit larger during pre-news
announcements than off-hours trading you can try to scalp a few more
pips...but don’t get greedy. )
If you want to trade on a shorter time-frame you can, but just remember
that the market needs time and room to move. And with 2 – 3 pip spreads
being the norm, you really need to pull more than 8-10 pips to make it
worthwhile.
Estimated time in the market:
• Off-Hours Trading: 45 – 90 minutes
• Pre-News Trading: 45 – 75 minutes
CHEAT SHEET #2
Breakout Scalping
Using breakouts to scalp the market is by far the most popular scalping
method. One reason is that it works, and the second is that it is the simplest.
When looking for breakouts to scalp, I’m only interested in the first hour
the different global bank sessions. This includes the:
• Asian session open at 7:00pm EST
• European session open at 2:00am EST
• London session open at 3am EST
• New York session open at 8am EST
As the different banks come online and start moving money, the odds of the
market moving and causing a sustained breakout go up.
And the more breakouts we get, the more opportunities we have to
scalp some quick pips!
Take a look at the chart below where I have identified the session opens and
look to see if you can find any breakouts:
As you can see, on this day this particular pair moved hard at the European
and New York session opens creating two very nice scalping opportunities. But
obviously before we can talk about how to scalp breakouts, we first need to
cover how we determine when a breakout has even occurred.
There are two methods I use to establish breakouts...one is more
conservative (but yields less trading opportunities) and one is MUCH more
risky (but gives you A LOT more trading opportunities).
Final Thoughts..
The key to successfully scalping in the Forex market is to “stack the deck” in
your favor.
You've just seen five different strategies that I use to scalp, depending on
my objectives, what time of day I'm trading, or the type of situation or market
condition that exists.
Most traders have only one strategy, and try the same approach regardless
of what the markets are doing. This is the biggest mistake one can make.
Being flexible is key, and to truly unlock the code to the ever-changing
markets you need to look at the market, not as a single market, but as several
different markets with entirely different behaviors.
Once you learn to identify the specific time frames to focus on, and the
different market conditions that exist, you can simply pull out the appropriate
strategy, plug it in, and immediately be entirely more successful, and a FAR
more accurate trader.
Now that you know the Forex trades as several independent markets you
are much further along your path to becoming a successful trader... but even I
don't try to do it on my own.
The “loop hole” I refer to is the next level of what you have just finished
reading about.
I have just recorded a very special video showing my Triad Trading Formula
System in action. Trust me, it takes everything you have just read to an
entirely different level! You can see what I mean by watching the video.
It uses a very special set of rules and proprietary indicators that I personally
use every day to take my trades. And the best part is anyone who trades with
my Triad system actually takes the EXACT same trades as I do.
If you have any questions, please feel free to ask our support team by sending an
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