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  1. #1
    LC100 is offline Junior Member
    Join Date
    Dec 2008

    Default 30 minute Forex scalping method revealed

    The principles to this 30 minutes scalping strategy can be applied on almost any time frame however please make adjustments for stop loss levels and profit targets.

    This trading strategy takes place approximately 3 to four times in a 24 hour period between the three major currency pairs.

    I like to use this strategy on a 30 minute chart however I know that some successfully apply it on smaller time frames. When choosing to look for a different time frame you must do some testing to determine your comfort level for profit targets and stop loss. Each one of us prefers to use a different type of stop loss and it may change the outcome of this strategy but I will attempt to explain my stop loss strategies with this 30 minute technique.

    How to set up your charts:
    I typically use the CCI and the MACD histogram. I also apply the -DMI and the +DMI to my charts and when I am looking to scalp I often times will rely on the DMI.

    In the price pain window I use a 20 day EMA. Generally I will go long when price is above the 20 day EMA and short when it is below. These are just some basic outline principles and can be adjusted according to market conditions such as consolidation.

    I also use the fulcrum based on each day price activity. A general method of using the fulcrum is to go long when price is above the fulcrum and short when the low.
    please remember these are just outline rules to apply some structure, don’t forget to do some testing.

    The set up:
    The entry occurs when I have a completed candle pattern such as a morning star, evening star or engulfing candle pattern. I must stress that I only analyze a trade when I have a closed completed candle on whatever timeframe I am using.

    For example,
    If price is inside of consolidation, I will look for one of these candle patterns to occur at support or resistance on the 30 minute chart and I prefer price to be below or above the 20 day EMA according to the rules I mentioned above. Now in reality it isn’t always going to look like that when price is inside of consolidation. The 20 day EMA will often times move in a semi-straight-line through consolidation making it difficult to get a reading.

    If this is the case I will only take one of these candle patterns when price has hit support or resistance that I can identify during the consolidation stage.
    If there is one of these candle patterns in the middle of this consolidation, I leave it alone as it may be a false move.

    The other location I find an entry to use the scalping method is when price has actually broken outside of a consolidation range. What I am specifically looking for is a confirmed closed breakout candle. Afterwards I watch for the retracement to either support or resistance depending on which direction price has broken out. Once price has returned to a support or resistance, again I look for that candle pattern in the direction of the confirmed breakout.

    Using this retracement pullback method will also allow for additional forms of confirmation such as finding the support or resistance level with psychological levels, Fibonacci retracement levels and the fulcrum. Additionally old highs and lows will come into play often.

    Profit targets:
    I am basically looking for 15 to 25 pips as a profit target. This method can be used with only one lot as there is no scaling out of the trade. Comfortably I look for 15 to 20 pips on GBP/USD and approximately 15 pips on EUR/USD.

    The stop loss levels are approximately one to one and equal to profit targets however on occasion it is not always possible to make that so and depending on market activity at the time retests are bound to happen. Specifically retests to support or resistance levels that often times will be very close to your stop loss.

    If the stop loss levels such as support below the candle pattern that creates the entry is too large and unacceptable to you, pass on the trade and look for another opportunity.

    Often times using the 30 minute and the 15 minute chart will provide numerous opportunities to keep stop loss levels within 15 to 25 pips.

    That’s basically it.
    The tip I would recommend always remembering is only analyze and wait until the candle has closed creating the pattern you’re looking for. Also don’t anticipate price will continue any farther than you planned. Simply take what you intended to from the beginning of your trade and follow your plan.

    It is always when we change our plan that we tend to lose.

    If you would like to see chart examples please instant message me and I will be happy to forward them or perhaps with enough interest I can post them here on this thread.

    Thank you for reading,
    good luck.

  2. #2
    subbu is offline Junior Member
    Join Date
    Apr 2009


    Can this be applied to all currency pairs? What are the currency pairs do you think it works most?

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