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Show me the money! [Daytrading] Need some trade ideas for today? Want to share your own intraday trade ideas? If you're the next Jerry Maguire and can show us the money then this thread is for you. Also, check out the School of Pipsology if you want to learn which timeframe you should trade in.

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Old 06-03-2006, 06:55 AM
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Join Date: May 2006
Posts: 135
Default Important rules to follow when index scalping with volume indicators

Important rules to follow when index scalping with volume indicators:

*Do not open a position until the volume moving average (VMA) surge has been confirmed. Confirmation of a VMA surge is when it has leveled, or has begun to drop again.
*Keep up with the current market trend. In an up-trending market, make more long trades, and conversely, in a down-trending market, make more short trades.
*Always place a stop-loss order. We suggest a stop-loss of 1 or 2 points for index scalping.
*Move your stop-loss orders when in profitable territory. By this we mean by this, is that when the index is moving in your favor and there is no sign it is stopping its movement, move your stop-loss. When you do this you are guaranteed your profit.
*Don't make any trades in the first 30-minutes of market hours, or the last 30-minutes. This is because sometimes in these periods, the market can be difficult to predict due to the fact that there is usually a lot of volume in these periods.
*Don't keep your futures positions open overnight. This can be very dangerous, as sometimes the market can open up or down several points and leave you with a substantial loss.
*To be more conservative with your scalping, try to pay attention only to the larger VMA surges.
*Not every day is good for scalping. The market tends to generate very good scalping days the day after a large move in the market.

http://www.marketvolume.com/content/...y_scalping.asp

Hope that these rules can help you with your index scalping using volume indicators and hope that it can help you succeed with your trading.
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