As I continue on my journey to trade full time...I am testing a few things on live account but with pennies. I've blow up a few accounts and thankfully these recent one's have only been for a few dollars. I'd like to get reaction to a scalping method.
Lot's of systems here call themselves scalper systems, but what they really do is wait for a trend to establish and then trade with the trend and the firing of 2 to three indicators. So they are trend scalpers I guess. Many of these systems don't fire at times when the indicators don't line up just right when sometimes it's so obvious because the best indicator, price, is moving in an obvious direction. So I propose a simple price action scalping method that will work on any pair.
I use M1 and M5 with a gann hi-lo indicator with a setting of 10. I have two moving averages to help keep me on the right side of the trade....but it's primarily price action and moving above/below gann that sets the trade up.
Rules for entry:
M5 - wait for gann to reverse, end of candle
M1 - go to M1 and now look for the same, gann to reverse and price starting to move
I wait for the retrace and when price hits a new high I'm in with a stop at the low of the most recent pullback.
I'm thinking we don't need much else besides pivots, S&R and some trendlines which are drawn on a higher timeframe...and we go with the price action moves with tight stops.
Exit is another matter all together and there are so many ways to exit. We can discuss that.
What I'm looking for is to refine some entry criteria....keeping it really simple and minimal indicators. Any comments from others that use price action to scalp would be much appreciated.
Cheers
CanuckCT
Lot's of systems here call themselves scalper systems, but what they really do is wait for a trend to establish and then trade with the trend and the firing of 2 to three indicators. So they are trend scalpers I guess. Many of these systems don't fire at times when the indicators don't line up just right when sometimes it's so obvious because the best indicator, price, is moving in an obvious direction. So I propose a simple price action scalping method that will work on any pair.
I use M1 and M5 with a gann hi-lo indicator with a setting of 10. I have two moving averages to help keep me on the right side of the trade....but it's primarily price action and moving above/below gann that sets the trade up.
Rules for entry:
M5 - wait for gann to reverse, end of candle
M1 - go to M1 and now look for the same, gann to reverse and price starting to move
I wait for the retrace and when price hits a new high I'm in with a stop at the low of the most recent pullback.
I'm thinking we don't need much else besides pivots, S&R and some trendlines which are drawn on a higher timeframe...and we go with the price action moves with tight stops.
Exit is another matter all together and there are so many ways to exit. We can discuss that.
What I'm looking for is to refine some entry criteria....keeping it really simple and minimal indicators. Any comments from others that use price action to scalp would be much appreciated.
Cheers
CanuckCT