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When choosing a forex course there is so much to consider, from the strategies, to course structure, to mentor track record and even the community. We have compiled a simple but comprehensive list of the worlds leading forex trading courses. Trading Masterclass, ran by Irek Piekarski and Jonny Godfrey, has taken the industry by storm over the last few years. To find out more, have a read volatility indicator forex our full in-depth reviewbreaking down everything you need to know about Trading Masterclass.

Day trading scalping system forex really earn on the forex exchange

Day trading scalping system forex

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But in normal circumstances, trading is fairly consistent and can allow for steady profits. That's because the spread between the bid and the ask is also steady supply and demand for securities is balanced. A pure scalper will make a number of trades each day—perhaps in the hundreds. A scalper will mostly utilize tick , or one-minute charts, since the time frame is small, and they need to see the setups as they take shape as close to real-time as possible.

Automatic, instant execution of orders is crucial to a scalper, so a direct-access broker is the preferred method. Traders with longer time frames can use scalping as a supplementary approach. The most obvious way is to use it when the market is choppy or locked in a narrow range. When there are no trends in a longer time frame, going to a shorter time frame can reveal visible and exploitable trends, which can lead a trader to pursue a scalp.

Another way to add scalping to longer time-frame trades is through the so-called "umbrella" concept. This approach allows a trader to improve their cost basis and maximize a profit. Umbrella trades are done in the following way:. Based on particular setups, any trading system can be used for the purposes of scalping. In this regard, scalping can be seen as a kind of risk management method.

This means that the size of the profit taken equals the size of a stop dictated by the setup. Scalp trades can be executed on both long and short sides. They can be done on breakouts or in range-bound trading. Many traditional chart formations , such as cups and handles or triangles , can be used for scalping. The same can be said about technical indicators if a trader bases decisions on them.

The first type of scalping is referred to as "market-making," whereby a scalper tries to capitalize on the spread by simultaneously posting a bid and an offer for a specific stock. Obviously, this strategy can succeed only on mostly immobile stocks that trade big volumes without any real price changes.

This kind of scalping is immensely hard to do successfully because a trader must compete with market makers for the shares on both bids and offers. Also, the profit is so small that any stock movement against the trader's position warrants a loss exceeding their original profit target. The other two styles are based on a more traditional approach and require a moving stock, where prices change rapidly. These two styles also require a sound strategy and method of reading the movement.

The second type of scalping is done by purchasing a large number of shares that are sold for a gain on a very small price movement. A trader of this style will enter into positions for several thousand shares and wait for a small move, which is usually measured in cents. Such an approach requires highly liquid stock to allow for entering and exiting 3, to 10, shares easily.

The third type of scalping is considered to be closer to the traditional methods of trading. With low barriers to entry in the trading world, the number of people trying their hands at day trading and other strategies, including scalping, has increased. Newcomers to scalping need to make sure the trading style suits their personality because it requires a disciplined approach. Traders need to make quick decisions, spot opportunities, and constantly monitor the screen. Those who are impatient and feel gratified by picking small successful trades are perfect for scalping.

That said, scalping is not the best trading strategy for rookies; it involves fast decision-making, constant monitoring of positions, and frequent turnover. Still, there are a few tips that can help novice scalpers. A novice needs to master the art of efficient order execution. A delayed or bad order can wipe out what little profit was earned and even result in a loss. Since the profit margin per trade is limited, the order execution has to be accurate. As mentioned above, this requires supporting systems, such as Direct Access Trading and Level 2 quotations.

A novice scalper has to make sure to keep costs in mind while making trades. Scalping involves numerous trades—as many as hundreds during a trading session. Frequent buying and selling are bound to be costly in terms of commissions , which can shrink the profit. This makes it crucial to choose the right online broker. The broker should not only provide requisites—like direct access to markets—but also competitive commissions. And remember, not all brokers allow scalping. Spotting the trend and momentum comes in handy for a scalper who can even enter and exit briefly to repeat a pattern.

A novice needs to understand the market pulse, and once the scalper has identified that, trend trading and momentum trading can help achieve more profitable trades. Another strategy used by scalpers is a countertrend. But beginners should avoid using this strategy and stick to trading with the trend.

Beginners are usually more comfortable with trading on the buy-side and should stick to it before they gain sufficient confidence and expertise to handle the short side. However, scalpers must eventually balance long and short trades for the best results. Novices should equip themselves with the basics of technical analysis to combat increasing competition in the intra-day world.

This is especially relevant in today's markets, which are dominated by high-frequency trading HFT. Not to mention that the majority of trades now take place away from the exchanges, in dark pools that don't report in real-time. Since scalpers can no longer rely solely on real-time, market depth analysis to get the signals they need to book multiple small profits in a typical trading day, it's recommended that they use technical indicators that are intended for very small time frames.

One technical indicator that is appropriate for a scalping trading strategy is called multiple chart scalping. First, create a minute chart without any indicators that you can use to keep track of any background conditions that could impact your intraday performance. Then add three lines: one for the opening print, and two for the high and low of the trading range that is set up in the first 45 to 90 minutes of the session. Watch for price action at those levels; they will also set up larger-scale, two-minute buy or sell signals.

Your greatest profits during the trading day will come when scalps align with support and resistance levels on the minute, minute, or daily charts. As a technique, scalping requires frequent entry and exit decisions within a short time frame. Such a strategy can only be successfully implemented when orders can be filled, and this depends on liquidity levels. High- volume trades offer much-needed liquidity.

As a rule, it is best to close all positions during a day's trading session and not carry them over to the next day. Scalping is based on small opportunities that exist in the market, and a scalper should not deviate from the basic principle of holding a position for a short time period. If a trader is able to implement a strict exit strategy, one of the biggest advantages of scalping is that it can be very profitable.

Scalpers also do not have to follow basic fundamentals because they don't play a significant role when dealing with only a very short timeframe. For this reason, traders don't need to know that much about the stock. Another major advantage of this strategy is that there is very little market risk involved. It is designed to limit the losses from any one stock by making tight leverage and stop-loss points. Scalping is also a non-directional strategy, so the markets do not need to be moving in a certain direction in order to take advantage of it: it works when markets are moving up and down.

Finally, many scalping strategies are easily automated within the trading system that is being used because they are usually based on a series of technical criteria. However, there are also drawbacks to using scalping as a trading strategy. First and foremost, scalping involves a maximum number of trades, compared to other strategies. Opening a large number of trades comes with higher transaction costs because you are paying a commission on every trade.

With scalping, you have to take advantage of high amounts of trades to generate enough profit; for some traders, the risk of just generating small profits is not worth it. Some scalpers make dozens or hundreds of trades a day; this strategy can be very time-consuming and requires high levels of concentration. Stock scalping is a legal trading strategy. It is used by both retail and institutional investors. However, it can also be used fraudulently, as has been noted by the SEC, such as when a market participant recommends a.

Yes, you can make money scalping stocks. Although scalping sacrifices the size of winning trades, it massively increases the ratio of winning trades to losing ones. However, some traders prefer different strategies that allow them to partake in bigger wins. With scalping, traders take lots of small wins quickly in order to minimize risk, which means that in pursuit of small wins, they may miss out on bigger wins.

Scalpers typically make trading decisions based on three different factors. Scalpers also use the Level 2 quotation to follow stocks that break out to new intraday highs or lows in order to capture as much profit as possible. However, to successfully execute this approach, you need to maintain focus for extended periods of time and have the highest level of order execution.

Finally, scalpers trend spot: follow the news and spot trends that may cause a security to become volatile. This allows them to create a watch list of "hot stocks" that are likely to experience price movements. There are many scalping strategies. One strategy is known as marking making. With this strategy, the trader aims to capitalize on the bid-ask spread by putting out a bid and making an offer for the same stock at the same time.

Scalping is somewhat similar to market-making. When a market maker buys a position they are immediately seeking to offset that position and capture the spread. This form of market-making is not referring to those bank traders who take proprietary positions for the bank.

The difference between a market maker and a scalper, though, is very important to understand. A market maker earns the spread, while a scalper pays the spread. So when a scalper buys on the ask and sells on the bid , they have to wait for the market to move enough to cover the spread they have just paid. In the converse, the market maker sells on the ask and buys on the bid, thus immediately gaining a pip or two as profit for making the market.

Although they are both seeking to be in and out of positions very quickly and very often, the risk of a market maker compared with a scalper, is much lower. Market makers love scalpers because they trade often and they pay the spread, which means that the more the scalper trades, the more the market maker will earn the one or two pips from the spread.

Setting up to be a scalper requires that you have very good, reliable access to the market makers with a platform that allows for very fast buying or selling. Usually, the platform will have a buy button and a sell button for each of the currency pairs so that all the trader has to do is hit the appropriate button to either enter or exit a position. In liquid markets , the execution can take place in a fraction of a second.

Remember that the forex market is an international market and is largely unregulated, although efforts are being made by governments and the industry to introduce legislation that would regulate over-the-counter OTC forex trading to a certain degree. As a trader, it is up to you to research and understand the broker agreement and just what your responsibilities would be and just what responsibilities the broker has.

You must pay attention to how much margin is required and what the broker will do if positions go against you, which might even mean an automatic liquidation of your account if you are too highly leveraged. Ask questions to the broker's representative and make sure you hold onto the agreement documents.

Read the small print. As a scalper, you must become very familiar with the trading platform that your broker is offering. Different brokers may offer different platforms, therefore you should always open a practice account and practice with the platform until you are completely comfortable using it. Since you intend to scalp the markets, there is absolutely no room for error in using your platform.

If you press the "Sell" button by mistake, when you meant to hit the buy button, you could get lucky if the market immediately goes south so that you profit from your mistake, but if you are not so lucky you will have just entered a position opposite to what you intended.

Mistakes like these can be very costly. Platform mistakes and carelessness can and will cause losses. Practice using the platform before you commit real money to the trade. As a scalper, you only want to trade the most liquid markets. Also, depending on the currency pair, certain sessions may be much more liquid than others. Even though the forex markets are trading for 24 hours a day, the volume is not the same at all times of the day. Thus, when two of the major forex centers are trading, this is usually the best time for liquidity.

The Sydney and Tokyo markets are the other major volume drivers. Scalpers need to be sure that their trades will be executed at the levels they intend. Therefore, be sure to understand the trading terms of your broker. Some brokers might limit their execution guarantees to times when the markets are not moving fast. Others may not provide any form of execution guarantee at all. Placing an order at a certain level and having it executed a few pips away from where you intended, is called " slippage.

Redundancy is the practice of insuring yourself against catastrophe. By redundancy in trading jargon, I mean having the ability to enter and exit trades in more than one way. Be sure your internet connection is as fast as possible. Know what you will do if the internet goes down. Do you have a phone number direct to a dealing desk and how fast can you get through and identify yourself? All these factors become really important when you are in a position and need to get out quickly or make a change.

In order to execute trades over and over again, you will need to have a system that you can follow almost automatically. Since scalping doesn't give you time for an in-depth analysis, you must have a system that you can use repeatedly with a fair level of confidence. As a scalper, you will need very short-term charts, such as tick charts, or one- or two-minute charts, and perhaps a five-minute chart. It is always helpful to trade with the trend, at least if you are a beginner scalper.

To discover the trend, set up a weekly and a daily time chart and insert trend lines , Fibonacci levels, and moving averages. These are your "lines in the sand," so to speak, and will represent support and resistance areas.

If your charts show the trend to be in an upward bias the prices are sloping from the bottom left of your chart to the top right , then you will want to buy at all the support levels should they be reached. On the other hand, if the prices are sloping from the top left down to the bottom right of your chart, then look to sell each time the price gets to a resistance level. Depending on the frequency of your trades, different types of charts and moving averages can be utilized to help you determine direction.

The daily chart shows the price has reached the Clearly, there is a possibility of a pullback to the trend line somewhere in the vicinity of 1. As a scalper, you can take the short side of this trade as soon as your shorter-term charts confirm an entry signal.

The price could be heading back to a target of 1. A forex scalping system can be either manual, where the trader looks for signals and interprets whether to buy or sell; or automated, where the trader "teaches" the software what signals to look for and how to interpret them.

The timely nature of technical analysis makes real-time charts the tool of choice for forex scalpers. Set up a minute and a one-minute chart. Use the minute chart to get a sense of where the market is trading currently, and use the one-minute chart to actually enter and exit your trades.

Be sure to set up your platform so that you can toggle between the time frames. Now, before you follow the above system, test it using a practice account and keep a record of all the winning trades you make and of all your losing trades. Most often it is the way that you manage your trades that will make you a profitable trader, rather than mechanically relying on the system itself.

In other words, stop your losses quickly and take your profits when you have your seven to 10 pips. This is a scalping method and is not intended to hold positions through pullbacks. If you find that you can manage the system, and you have the ability to pull the trigger quickly, you may be able to repeat the process many times over in one trading session and earn a decent return.

Remember that too much analysis will cause paralysis. Therefore, practice the methodology until it is automatic for you, and even boring because it becomes so repetitive. You are in the business of scalping to make a profit, not to boost your adrenalin or feel like you are playing in a casino. Professional traders are not gamblers; they are speculators who know how to calculate the risk, wait for the odds to be in their favor, and manage their emotions.

Remember, scalping is high-speed trading and therefore requires lots of liquidity to ensure quick execution of trades. Only trade the major currencies where the liquidity is highest, and only when the volume is very high, such as when both London and New York are trading. The unique aspect of trading forex is that individual investors can compete with large hedge funds and banks—they just need to set up the right account.

Do not scalp if you do not feel focused for whatever reason. Late nights, flu symptoms, and so on, will often take you off your game. Stop trading if you have a string of losses and give yourself time to regroup.

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They place trades on the market and do not wait for the result. They know where the market will go and wait for closing trades to get a profit in their account. Ultrafast result and result in days: This is the main difference between a day trader and a scalper.

A scalper is ultrafast in his trading. He is like a rocket traveling in space when trading and closing his trades. Before you can see the market price of his opening trades, he will close his trades. The day trader keeps his trades for a single day on the market. They are also fast traders as they do not keep the other days for the same trades, but they are average traders.

Scalpers get their result immediately and day traders in a day. Better trade execution: Regardless of your trading system you should learn the price action trading strategy. If you scalp the market or even day trade, then price action trading strategy will help you to find the best possible trades in the market. Day trading and scalping are two different trading strategies. By now you know the major difference between the two systems in the market.

If you truly want to make money in the online trading world, then make sure that you trade with proper risk management factors and use logic to execute the trades. Skip to content Money. June 20, April 18, Dominic Lill account size , day trading , Forex , market , Profit , scalping , timeframe , traders , Trading. There are many strategies in Forex and sometimes notions about these strategies overlap in the minds of traders. Day trading and scalping are different strategies in Forex.

They are not related to each other, and the traders are also different. Differences between these two traders There are many differences between these two traders. Share This Post:. The differences between social trading and mirror trading December 13, Dominic Lill. How to succeed in a competitive market: Top tips on online marketing March 10, June 16, Dominic Lill.

To get the best out of any one minute trading system you either have to have a trading account which allows you direct access to the market, or the best broker with a fast execution platform and lowest forex pair spreads. You are completely wasting your time trying to trade this time frame with a wide spread.

For this chart set up all you need is standard Bollinger bands and a period exponential moving average. Firstly you need to create a rule to determine direction. Our rule here is determined by the moving average. For a buy signal both the upper Bollinger band and the middle moving average of the Bollinger band must be above the exponential moving average.

For a stronger buy signal all three of the Bollinger bands should be above the exponential average. For a sell signal both the lower Bollinger band and the middle moving average of the Bollinger band must be below the exponential moving average. For a stronger sell signal all three of the Bollinger bands should be below the exponential average. There are things to look for which will become very apparent as you trade this in real time yourself.

Make sure you test out this system on a demo account before you trade it for real, and make sure you get a feel for when the best trades might come. One of the things you might want to look for are the tightening of the Bollinger bands after a change in direction, often a small impulsive push comes right afterwards.

Once you have determined if the price is in buy or sell mode you will then be looking to enter a trade. This system takes trades in the direction of the Bollinger bands into the extremes. So for instance on the chart below, buying mode has been established because both the upper Bollinger band and the middle Bollinger average are above the exponential moving average. Once an up candle has formed you are looking for the price to break beyond the high of this candle.

Take a look at the example on this chart. The first highlighted area shows a candle closing up, which then moves higher on the open of the subsequent candle. This would be where you enter the trade. Your stoploss would be placed at either the last low in the price, or at the lower Bollinger band.

This is now where practice comes into play. To keep your risk to a minimum you need to be fast and efficient at moving your stoploss up under the price. What you are looking for is the price to continue and approach or touch the upper Bollinger band.

Once it moves towards the upper Bollinger band you need to move your stoploss up to the middle Bollinger band level. This will remove most of the risk from the trade. If the trade moves up sharply you may want to place your stoploss at breakeven right away actual entry point. With practice you get a feel for the correct place to put your stoploss to allow your trade freedom to move.

Often after the Bollinger bands have contracted price breaks out with a sharp move. If you are quick and get your stop to breakeven you can look to exit this trade somewhere between one or two times the risk distance between your entry and initial stoploss.

Ideally, if you risked 10 points you want to be taking between 10 and 20 points profit from a trade. If the move has been sharp you may want to try and lock in some profits, as often it can retrace quickly.

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Investing exponential functions formula Our penultimate section looks to bolster your knowledge of forex scalping strategies, offering three of our favourite techniques on how best to scalp the markets, including a brief overview of each. How do I fund my account? Often traders will utilise more than one strategy to cement their findings further. Whereas a day trader may trade off five- and minute charts, scalpers often trade off of tick charts and one-minute charts. There are many different techniques traders use to predict market movement favourably, allowing traders to enter the market at opportune moments.
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Forex strategies photos Below are some examples of popular indicators that we offer on our online trading platform. Compare Accounts. Slippage occurs when an order cannot be executed instantaneously, this can prove costly when working in such a small pip range before closing. Your Money. A trading strategy is the method of buying and selling in markets that is based on predefined rules used to make trading decisions.
Dodd frank act definition eligible contract participant forex Some brokers will automatically close all active positions if your account falls into a negative balance unless you are signed up to their pro accounts. Currency Trading Platform A currency or forex trading platform is a type of trading platform used to help currency traders with forex trading analysis and trade execution. Daily forex trading requires dedicated market here, an understanding of how and why market movement occurs, as well as having nerves of steel. As a scalper, you can take the short side of this trade as soon as your shorter-term charts confirm an entry signal. Trade now commission-free.
Day trading scalping system forex As we keep mentioning, scalping for forex trading takes a certain level of knowledge and temperament. It is used by both retail and institutional investors. Decide if you want to buy or sell. Scalping can be fun and challenging, but it can also be stressful and tiring. Partner Links. The Bottom Line.
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Quite the cypher model on forex think, that

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Be sure your internet connection is as fast as possible. Know what you will do if the internet goes down. Do you have a phone number direct to a dealing desk and how fast can you get through and identify yourself? All these factors become really important when you are in a position and need to get out quickly or make a change.

In order to execute trades over and over again, you will need to have a system that you can follow almost automatically. Since scalping doesn't give you time for an in-depth analysis, you must have a system that you can use repeatedly with a fair level of confidence. As a scalper, you will need very short-term charts, such as tick charts, or one- or two-minute charts, and perhaps a five-minute chart.

It is always helpful to trade with the trend, at least if you are a beginner scalper. To discover the trend, set up a weekly and a daily time chart and insert trend lines , Fibonacci levels, and moving averages. These are your "lines in the sand," so to speak, and will represent support and resistance areas. If your charts show the trend to be in an upward bias the prices are sloping from the bottom left of your chart to the top right , then you will want to buy at all the support levels should they be reached.

On the other hand, if the prices are sloping from the top left down to the bottom right of your chart, then look to sell each time the price gets to a resistance level. Depending on the frequency of your trades, different types of charts and moving averages can be utilized to help you determine direction. The daily chart shows the price has reached the Clearly, there is a possibility of a pullback to the trend line somewhere in the vicinity of 1.

As a scalper, you can take the short side of this trade as soon as your shorter-term charts confirm an entry signal. The price could be heading back to a target of 1. A forex scalping system can be either manual, where the trader looks for signals and interprets whether to buy or sell; or automated, where the trader "teaches" the software what signals to look for and how to interpret them. The timely nature of technical analysis makes real-time charts the tool of choice for forex scalpers.

Set up a minute and a one-minute chart. Use the minute chart to get a sense of where the market is trading currently, and use the one-minute chart to actually enter and exit your trades. Be sure to set up your platform so that you can toggle between the time frames.

Now, before you follow the above system, test it using a practice account and keep a record of all the winning trades you make and of all your losing trades. Most often it is the way that you manage your trades that will make you a profitable trader, rather than mechanically relying on the system itself. In other words, stop your losses quickly and take your profits when you have your seven to 10 pips.

This is a scalping method and is not intended to hold positions through pullbacks. If you find that you can manage the system, and you have the ability to pull the trigger quickly, you may be able to repeat the process many times over in one trading session and earn a decent return. Remember that too much analysis will cause paralysis. Therefore, practice the methodology until it is automatic for you, and even boring because it becomes so repetitive.

You are in the business of scalping to make a profit, not to boost your adrenalin or feel like you are playing in a casino. Professional traders are not gamblers; they are speculators who know how to calculate the risk, wait for the odds to be in their favor, and manage their emotions.

Remember, scalping is high-speed trading and therefore requires lots of liquidity to ensure quick execution of trades. Only trade the major currencies where the liquidity is highest, and only when the volume is very high, such as when both London and New York are trading. The unique aspect of trading forex is that individual investors can compete with large hedge funds and banks—they just need to set up the right account. Do not scalp if you do not feel focused for whatever reason. Late nights, flu symptoms, and so on, will often take you off your game.

Stop trading if you have a string of losses and give yourself time to regroup. Do not try to get revenge on the market. Scalping can be fun and challenging, but it can also be stressful and tiring. You must be sure that you have the personality to indulge in high-speed trading. You will learn a lot from scalping, and then by slowing down, you may find that you can even become a day trader or a swing trader because of the confidence and practice you may get from scalping. Remember though, scalping is not for everyone.

Always keep a log of your trades. Use screen capture to record your trades and then print them out for your journal. It will teach you a great deal about trading and even more about yourself as a trader. The forex market is large and liquid; it is thought that technical analysis is a viable strategy for trading in this market.

It can also be assumed that scalping might be a viable strategy for the retail forex trader. It is important to note, however, that the forex scalper usually requires a larger deposit , to be able to handle the amount of leverage they must take on to make the short and small trades worthwhile. Scalping is very fast-paced. If you like the action and like to focus on one- or two-minute charts, then scalping may be for you.

If you have the temperament to react quickly and have no compunction in taking very quick losses, not more than two or three pips, then scalping may be for you. But if you like to analyze and think through each decision you make, perhaps you are not suited to scalp trading. Day Trading.

Trading Strategies. Trading Skills. Your Money. Personal Finance. Your Practice. Popular Courses. Table of Contents Expand. Table of Contents. What Is Forex Scalping? Scalping Personality. Market-Making vs. How to Set up for Scalping. Preparing to Scalp. Trading System. When to Scalp. The Bottom Line. Key Takeaways Scalpers enter and exit the market quickly, making several small trades in the hopes of achieving profits from relatively small price changes over and over again.

Scalpers must be highly disciplined, competitive by nature, and decisive decision makers to succeed with these types of trading strategy. Various technical trading systems exist to aid in scalping, many of which are offered directly by online brokers or exchange platforms.

Compare Accounts. This is now where practice comes into play. To keep your risk to a minimum you need to be fast and efficient at moving your stoploss up under the price. What you are looking for is the price to continue and approach or touch the upper Bollinger band. Once it moves towards the upper Bollinger band you need to move your stoploss up to the middle Bollinger band level.

This will remove most of the risk from the trade. If the trade moves up sharply you may want to place your stoploss at breakeven right away actual entry point. With practice you get a feel for the correct place to put your stoploss to allow your trade freedom to move.

Often after the Bollinger bands have contracted price breaks out with a sharp move. If you are quick and get your stop to breakeven you can look to exit this trade somewhere between one or two times the risk distance between your entry and initial stoploss. Ideally, if you risked 10 points you want to be taking between 10 and 20 points profit from a trade. If the move has been sharp you may want to try and lock in some profits, as often it can retrace quickly. Start moving your stoploss up from breakeven or from the middle Bollinger and trail it underneath the low of every candle that closes up.

The next highlighted area on the above chart shows a sell trade. Once again you are looking for the lower Bollinger band and the middle Bollinger average to push below the exponential moving average. Then you are looking for a candle that closes down, and the entry is triggered when the low of this candle is broken.

Your stoploss is placed at either the last small high in the price, or at the middle Bollinger level, or at your maximum you are willing to risk on the trade. Bear in mind you want to keep the risk as small as possible on these trades to make this work.

Once the price has moved down towards touching the lower Bollinger band you need to get your stop quickly to breakeven. Then either start to trail it down locking in your profit, or closing the trade between one or two times your risk. As the price starts to push down to the lower Bollinger band you get your stop quickly to the breakeven level. At worst you should have been stopped out at breakeven. Because the last low is quite far away I would suggest placing your stoploss at the middle Bollinger average as the price starts to break in your trade direction.

The price quickly moves towards your upper Bollinger band and at this point is around 1. Here you can either close out for a profit, or trail your stoploss under the low of each one minute candle until the price reverses and closes the trade. You might get another few points reward doing this. You will notice on the chart above that price continued up after the first trade. When you are first learning this system I would suggest you only take the first trade in any new direction.

As you become more aware of how this system behaves, you might want to use the same entry and exit techniques to trade continuations of the trend. If it is a strong move and the price is above the middle Bollinger, every consequent touch of the outer Bollinger bands can lead to a profitable move which fits with your risk. I would suggest you set up a chart with the indicators as shown. Leave it open on your desktop and follow the idea visually for a few days.