I’m scalping in my practice account (Oanda) and I’m using Bollinger Bands, SMA and EMA lines and an RSI chart (Just finished 5th grade, so I’m toying with the charts right now) The Oanda default levels for the RSI are upper: 70 lower: 30, with the middle line at 50.
I like trading on the five-minute chart, but I refer to the 15 min and 1 hr charts for an idea of the trends. When I look at the one hr chart, the trend may be down around the 50-line, but then I look at the 15 min chart and the trend is up by the 70 line…I know WHY this is, my question is this: Which chart do you experienced folks like to look at for a buy/sell signal ie, which is the more reliable RSI trend to watch?
I was hoping you’d reply. Thank you Pablopluto, you,ve been a big help to me and I really appreciate it. By the way, does the news come out at certain times, or what? (I haven’t made it to that part of school yet.)…I really have a hard time knowing how the market will respond to the news too.
I trade off of 5 min charts I look at the 15 min charts for the overall trend. There are news schedules. Forexfactory has a time for them. I suggest to buy a cheap watch and put it on Zulu time to figure out when they are reported. I dont use a RSI because its really not that consistent on the 5 min charts. Stochs work fairly decent. I use a 2SMA to use as a guage for momentum. Momentum is very important in scalping. I dont know if people understand that fast moving trends are one of the most reliable ways to scalp. Hope I can be more of assistence. Keep experimenting until you find what works for you.
Thanks for the reply. That’s very helpful to me. I haven’t used a TRO compass yet, but it looks very helpful and I’m anxious to learn about it. Is that covered in school, or is that something you’ve picked up along the way? Also, do you know if Oanda offers that tool?
Thanks,
Jesse
You can scalping on 1 min chart for small pips . If you want to to scalping for more pips then you can look at 5 min chart. You can enter &exit trade look at 1 min chart. you can determine minor trend on your 15 min chart. You need to look at 15 min chart whereby the currency will normally look for support & resistence and also look at the currency trading at uptrend or downtrend with ema setting ,macd,rsi . example on upterend , look at 5 min chart ,if also upternd , then you can trade at support level at 1 min chart to obtain early pips before the currency move to up. The most importent , you must need to analysis where the currency will look for support & resistance, Once you are familiar with everyday trade with demo, then now you be able to read the chart affectively. Higher time frame for the move , uptrend or downtrend ,& supply &demand where the currency resting.
I’ve just completed 11th grade, about making a system…I really like the sample system mentioned in the lesson…any suggestions on how to adjust that system for scalping? (It’s set up as a swing trade system…I don’t have the patience for that yet.)
Pablo: I tried using the 2SMA, but I must have been reading the momentum wrong…every time I tried to go with the momentum, it changed on me…any suggestions?
2SMA 5EMA 10EMA Is what i use when they cross they all need to cross ususally the 2SMA crosses first then when the 5EMA and 10EMA cross enter and scalp, use trailing stops if you like.
Remember top to bottom
2 5 10 =long
10 5 2 =short
Thats what i been using for 2 years.
Pablo:
Thank you for clearing that up…May I ask just one thing…are you sure it’s not bottom to top instead of top to bottom for reading the moving averages…I back tested and I think it may be a type-o, because bottom to top seems to be DEAD ON. Thank you again for all your help, I really appreciate it.
You posted it right. I read it wrong. I’ve been trying that out for the last coup,e of days, but I’m having trouble keeping what I make. Do you ONLY trade the cross? What about take proftis, etc.? The reason I ask is this. I made like 10 pips in five trades with the same trend, but then lost 12 pips when the trend reversed without warning (on 5-min charts) What do you do to keep your pips?
After about 7 pips I set the TP then let it run til I want to close it. If I was letting them run. Im not greedy I see the cross then enter and get out and wait for another cross. I dont keep trading the trend you can let you profit run but I dont do it. Once I do make a trade I strat looking at other pairs to see if a cross is comming
