___Forex Scalping
your trades might be adversely affected by Fundamental Announcements. So definitely be sure to read “Forex Sailing” for that ever important tip!
WITHIN RANGES As the saying goes, “the market can only move up, down or sideways”. Obviously, when the market is trending then it is predominantly moving either up or down. As discussed earlier in this eBook, to say a market is moving “sideways” isn’t really true because what it is really doing is moving up, back down, back up, back down, etc. – oscillating within a “range”. Recognizing that the market is confined within such a range presents the opportunity to trade within it, especially as a scalper. “Within Ranges” is a scalping opportunity that can happen in virtually all time frames, but for the purpose of scalping you’ll usually be looking for them on your hourly charts, but you can also find them on your 5 minute charts, and even on your daily charts. The patterns that create the ranges you’ll want to trade within include: • • • •
Sideways Consolidations Sloping Consolidations Triangles Flags
While you see such patterns you use the following methods to trade within the pattern, but be watchful for when the market breaks out of the pattern. Once it eventually does break out then you simply change your trading strategy from “Within Ranges” to “Pattern Breakout” methodologies.
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