Scalping Forex

It may be the biggest market, but its a bit decieving. From the 3 trillion turnover figure that you can often read about, 2 thirds are transacted in swaps, a good portion from the other third is interbank trading (as in interdealer, 'real' interbank), then a bit of forwards, options, futures. The remaining rest of the spot FX volume, where 'normal' traders are able to participate, isnt all that big.

Also in my opinion the CME tape is useless. The vast majority of FX volume is traded OTC, so whatever the T&S list tells you, it is at least questionable if it is indicative of 'the market'.
 
I have found forex to be very hard to scalp also. I think the Euro is probably the only one that has spreads tight enough to even think about scalping. Using any kind of indicators seems futile. Being able to read momentum and step in front of it is about the only possibility I see but I havent figured out a way to do it yet. The way to go, imo, is longer term fundamental trading but I dont know if I am prepared to do the neccessary study after all Ive already been through.
 
Buscoe, which chart do you use the fb, sup/res, and trendlines -- 15min, 5min or 2 min?

Also

" Other than that I will close most trades that go against me by 2-4 pips. When I enter, I'm pretty certain on the direction so I don't need much to convince me that I'm wrong. "

When you account for the spread of 4 pips, you will need to make 6-8 pips for a 2-4 pip profit. Hence if a trade goes against you by 2 - 4 pips --you will still need to make a 2 - 4 pip positive move --is that right.
 
The last 6 months E/J pair has become THE PAIR in forex. + 200 pips average per day the last few months. Last month +220 pips per day with days with more than 300 pips plus is probably the only one tradable at the hours you want to trade (japan opening).

However, I prefer to wait until london opens... you have more and better options for scalping futures. From the wild DAX, Eurex instruments to Currencies and even a "sedated" ES...

jjrvat
 
What data provider are you guys using? I need one which provides volume information. I'm with IB and they don't seem to be able to display the volume information on the chart. Or if I use sierra chart to backfills data from IB, I'm not able to get the historical data on Forex. So any recommendation is appreciated, Thanks.:)
 
Quote from pbw:

Buscoe, which chart do you use the fb, sup/res, and trendlines -- 15min, 5min or 2 min?

Also

" Other than that I will close most trades that go against me by 2-4 pips. When I enter, I'm pretty certain on the direction so I don't need much to convince me that I'm wrong. "

When you account for the spread of 4 pips, you will need to make 6-8 pips for a 2-4 pip profit. Hence if a trade goes against you by 2 - 4 pips --you will still need to make a 2 - 4 pip positive move --is that right.
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My tick charts have all the fibs from the swings and I plot TL's on those. The min charts I plot the key price levels from previous swing points in addition to daily and weekly pivots and TL's.

True, you must account for the spread. If I'm wrong and I see price moving the opposite direction, I'll double or triple my lot size so the same pip move will recoup the prior loss and also net me a profit.
 
Quote from bugscoe:

Don't expect much action around midnight EST. The real action starts around 2:00am when London opens and continues through the NY session.

Not sure what you saw and/or define as scalping opportunities but I scalp the EUR from around 6am until about 11am and there are plenty of opps available every single day.
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He is right, if you could mutitask with your scalping, then do it and watch how liquid and volitale the FX market really is
 
Quote from mrbud:

I hear the Nikkei 225 mini is gaining in popularity. It starts at 8:00pm Eastern, right up my alley. I'll have to stick a chart up and watch it trade. Don't know if I can get the mini on Esignal though.

Thanks everyone. [/B]
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>mrbud

You can get it if you subscribe to the Osaka exchange(OSM).
The eSignal symbol is NI225_M Z7-OSM.
 
Quote from Pippi436:
It may be the biggest market, but its a bit decieving. From the 3 trillion turnover figure that you can often read about, 2 thirds are transacted in swaps, a good portion from the other third is interbank trading (as in interdealer, 'real' interbank), then a bit of forwards, options, futures. The remaining rest of the spot FX volume, where 'normal' traders are able to participate, isnt all that big.
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Very interesting Pippi. That would explain it.

Learner2007, thanks for the help. Saved me a lot of time.

Thanks everyone, I'll check out your suggestions.
 
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