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Trade
Night scalping
Night scalping for many beginners currency speculators is nothing more than a trade at that time of day at which it is customary to sleep. In fact, under this definition means a short-term trading in the Asian session. As the trading session coincides with the hours of the night for Moscow, St. Petersburg, Rostov and other cities of Russia, the trade was called it a night. On the other hand, residents of Khabarovsk, for example, the Asian session will be called, most likely, day. However, as described in this article scalping method has its own characteristics, and the name of the technique for convenience and leave alone.
Flat and scalping
Why Asian session is selected for the job? The fact that some currency pairs show it to the flat behavior in the selected period of the day. Here the trends are rare and therefore the speculator tries to do not bet on their presence in the market and earning flat. The price often starts to move inside the so-called channel. The absence of significant liquidity in the nighttime traded pairs, just involves "relaxing" the behavior of prices.
In Fig.1 shows the state of the market during the Asian session. As can be seen in the figure, in the night time there is flat in contrast to the other periods. Sometimes the trends are in the market, but every rule has exceptions. In General, traders put on the schedule channel indicators, where the looming border of the channel, and perform operations in case of the breakout of the channel borders market price. The direction of the position is set to the opposite curve of the price channel. We can say that the night scalping strategy is aimed at "lights out."
Interesting and useful video "Why do trade at night" on scalping in the Asian session:
Stop Loss for channel scalping
For example, the price breaks out of our price channel. The upper bound turns into a sale transaction. In this case, the calculation of the trader that the price will not be able to go far up beyond the broken border, as the market is weak. Actually, this statement is built the whole work of the speculator on a "retreat".
As a rule, Stop Loss is chosen in value such that on the one hand would be enough in case of failure to understand that the price goes much higher, on the other, to fluctuations in the market price near the hole in the border wouldn't have hit order. This value can be selected as fixed points.
As the volatility of different currency pairs different, it is possible to understand in advance what the value of Stop Loss will not be the same for different instruments. Optimal Stop Loss when scalping the channel selected in the testing process for each trading instrument. Some General recommendations for any currency pair here.
Take Profit of a sleepover
Not difficult to guess that the Take Profit on this trade is often installed at the opposite boundary of the channel. In this case, the trader just expects that there will be a "bounce" rates from the channel. That is, the break with further strengthening of market prices for the upper border of the channel will not take place.
The movement of the market back inside the channel, where you will take profits. Often the transaction does not close by Take Profit, as the order is placed over the lower curve of the channel. In Fig.2 shows, when there are price contraction. Note that the indicators for visualization of the market situation for night scalping different.
Scalping of interest to many, as it does not propose to engage in deep analysis of the situation, to predict the course of events for a long time. Enough to work short-term transactions that already have a positive result in their work. As a rule, the number of trades when scalping in the Asian session depends on the number of trading instruments used, and the number of breakdowns of the price channel, which is the signal for opening positions.
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| Category: Forex | Added by: (05.11.2017)
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| Views: 1331
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