strategy averages out.7 as some trades have a 1:5 ratio. And this is especially true when scalp trading. You should already know how to identify a dominant trend, I talk about this in the education section linked to above. From the screenshot :. On M5 chart a 9:55 candle closed green at 10:00. The short is entered because price is trending down and it is clear buyers cannot regain control of price. Here is a list of the pairs I trade with this strategy. You need to be prepared to wait it out sometimes. Buyers try to take control all the time.
I will explain it in more detail in the examples below. In this article I will cover these skills as they relate to scalp trading. When a trade is geneva forex event two pips from target and then reverses five pips many people just close it out. The basic concept is to trade with the trend. I take price action based reversal from areas of support and resistance. This is because reversal trading relies on identifying the precise moment in which a trend dies. Generally my stop is 5 pips and my target is 15 pips. The major trend is bearish, this indicates sellers are in control of price (one point for sellers) Buyers caused a minor reversal back up to resistance, this indicates that buyers have some power (one point for buyers) Price is at a strong area of resistance. In these real examples I take you through real scalp trades I took step-by-step.