I want to put this out there and know your opinion/thoughts. Let me paint the picture …
Scalping the Cable using 15, 5, and 1 minute charts. 15 minute chart for trend, 5 minute chart for short term trend, and 1 minute chart for entry and exit. Using Bollinger Bands to trade fades (bounces from outter Bands to the SMA and/or through SMA). RSI is there to show likely reversals when 30 or 70 is touched
[B]may i suggest you use the CCI either in conjunction with, or seperately from the RSI ? what i find most beneficial is actually a combination of the DSS with the accumulation/distribution indicator on one panel (cannot beat it for trend spotting) and the CCI and fast stoch on another panel — one identifies TREND on the one minute and 5 minute (or the 15 should you desire) with the DSS and trades the cross of the acc/dist as a confirmed buy and sell, although one can easily take the cross of the acc/dist and its SIGNAL LINE as an entry also !
Exits are performed by opposite crosses or the use of "barrys s+r overlay and the CCI will show some very interesting stuff — it follows the price down, hits bottom and you can take profit there or HOLD if you see the trend holding on the longer timeframes.
as the price retraces, the CCI follows it up and finally TOPS at/or near the top of the retrace, where you can now ADD to your existing short and double your fun. the CCI is a delicious way of seeing tops and bottoms, but picks up on VERY small intraday moves on the one minute chart wonderfully, giving you clean signals and the ability to enter and re-enter during retraces.
I MUST disagree muchly with your bollinger play, as the bols are EASILY moved during the gyrations and rapidly changing momentum of the one minute trade — essentially, except in rather static situations, they end up FOLLOWING the price once theyve been violated ---- of course, im speaking about the price moving down to the bols which it finds as support, and then CONTINUING DOWN which you will ONLY see in advance on the DSS and CCI !
Starc bands will react exactly as does the bollinger bands, but they provide a method of gauging retraces that the bols lack.
most of this should be clear, but the use of the starc bands in scalping is new to me and presently under study, BUT has so far proven to be a rather amazing little tool that i have rapidly taken a shine to !
Now, in ALL trading i never use a stop loss, BUT i would add the word “ABSOLUTELY” to “never” when scalping the one minute — if one locks onto the trend, you can (essentially) NEVER lose a trade as long as the trade is WITH the trend, and thats just that. Of course, the direction (although usually not the trend) changes many times during the day, but these times are easily learned and play out day after day after day.
Almost every loss i see people having in scalping is due to a stop loss being hit, and then the price continues right to your expected take profit point — I would HATE if that happened to me, so i simply eliminate that situation.
of course, this is predicated on following the trend, and knowing at what time of day that trend will change, so you MUST know these things and you must practice on a demo to see if it works for you or not — NEVER try something new, especially if dangerous, without a LOT of testing.
on risk/reward I have not a clue ---- i DONT look at a trade as something with risk, but rather its either a good opportunity, or the spread is too high to try for a profit, and therefore its a BAD opportunity — IF i were to try to figure risk, etc — i would NEVER trade, but working on a calculator all day !
a few hundred pips a day from just scalping does NOT come from working with rules or a calculator !
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