I’ve been asked several times in the last few months to develop a very simple, yet effective,scalping system. I’m not very interested in scalping myself. I prefer big game hunting, but I DO, from time to time, scalp the 15 minute charts. Here’s a very effective method of scoring some decent pips. I call it bitty bodies. The reason for the name will be apparent when you see the setup candle.

This system works on any pair and on any timeframe. I, personally, would never trade anything lower than the 15 minute chart with any system. I’ve tested this system on everything from 15 Minute to Daily. I’ve had good results on them all.

The system works best when you trade in the direction of the next higher timeframe. For example, if I am trading the 1 Hour chart, I’ll look at the color of the current 4 Hour candle. If the 4 Hour candle is Green, or Bullish, I’ll only take Long setups. If the 4 Hour candle is Red, or Bearish, I’ll only be looking for Shorts. This makes the system much more effective.

Chart Setup

Chart Type: Candlesticks
Indicators: MACD (12,26,9)

Setup Candle

The setup candle for this system is very easy to identify. It is a candle with a body that is no more than half the size of the entire candle. That mans that the wicks have to be at least as long as the real body.

Short Entry Setup
1. At least 5 MACD bars in a row are below the 0 line.
2. Setup Candle presents itself.
3. Setup Candle has a lower high and a lower low than the preceding candle.

Long Entry Setup
4. At least 5 MACD bars in a row are above the 0 line.
5. Setup Candle presents itself.
6. Setup Candle has a higher high and a higher low than the preceding candle.

Short Entry
1. Place Short order 2-3 pips below the low of the setup bar.
2. Place SL 2-3 pips above the high of the setup bar.

Long Entry
1. Place Long order 2-3 pips above the high of the setup bar.
2. Place SL 2-3 pips below the low of the setup bar.

Exit
There are two exit strategies for this system.
1. Simple: Exit when price action stalls and you’re in profit. Don’t get greedy. You can get dozens of trades per session with this system! 5-10 pip gains add up quickly!
2. Advanced: Exit ½ position when the price moves in your favor a distance equal to your SL + spread. Let’s say you have a 5 pip stop loss and a 3 pip spread. When price action moves 8 pips in your favor, you close ½ your position and let the rest ride. After you close ½ your position, the rest of the trade is free from risk! You cannot lose money. You can catch some HUGE gains like this. You’ll stop out much more often, but your winners will be much bigger.

First Show. Review of our trades this week. List members will be given the opportunity to call in with questions after the review.  This week, I had the opportunity to speak with Bill from Missouri.

Forex | gap Trading | Blue Zone Trading | ORBIT Trading | Forex Trading

Another profitable week for our Free Trade Calls Subscribers!

Everyone, I posted two free trade calls to the e-zine at 4:00 pm CST. These trades are worth over 100 pips! I’ll post the results of these trades to the blog later this evening. The only way to get these trade calls before they happen is to subscribe to free our e-zine.

These trades have already moved in or favor.  I don’t expect it to take more than a few hours for the gaps to fill, and our trades to complete.

Tonight at midnight CST, I’ll post the ORBIT trades to the e-zine.

Thanks,

Tim

Trade Call Information:

System: Gap Trades

Time: Sundays @ 3:45 CST

Price: FXDD / FXSOL

Edge: +56 pips (calculated over two years of actual trading, not back-testing software)

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Explanation:

The Foreign Exchange (Forex) market is never really closed. There are banks that have access to buying and selling currencies 24/7. You, I, and most others lose the ability to trade at 3:00 CST, Friday afternoon. When the retail trading week ends, it reduces the liquidity of the market. This creates a great opportunity for bankers to fill orders at clearance prices. It’s also the reason that most traders close their trades over the weekend.

When a bank fills large orders during the weekend, the BID and ASK prices change for the currency pair. The retail brokerage, is not receiving this after-hours information. The price on your chart remains at the closing price from Friday.

When the retail market opens at 4:00 CST on Sunday, any difference between the closing price and the actual price creates a gap. This gap is visible on your chart. As the retail markets open, these gaps start to close. Thin liquidity on Sunday afternoon makes these gaps close pretty quickly. This price action creates a situation that is as close to perfect as you can get in a market. These gaps almost always fill! In two years of trading gaps I have only lost money on one trade. 90% of these trades close out at the price of Friday’s close within a few hours of Sunday’s open. The rest close out at some point during the week. This is one time that you can predict the price action with high probability.

When I send trade calls for Gap Trades, I will only give you a one-liner per trade that looks like the following:

GBPUSD – SHORT to 1.4440

The above listed trade-call means that I am Shorting GBPUSD and will close the position when the price reaches 1.4440.

I can’t give you more information than that because every brokerage has different opening times, different price feeds, and different spreads. Use sound money management, and don’t over-leverage yourself. I, personally, never use stop losses on these trades. I trade relatively small amounts of money on gaps to keep my risk management to an acceptable level.

I analyze gaps and provide trade-calls for the following pairs:

GBPUSD

EURUSD

USDJPY

USDCAD

AUDUSD

USDCHF

GBPJPY
EURJPY

EURGBP

Disclaimers

Forex is a High Risk Investment

Trading in the foreign exchange markets carries a high level of risk, and may not be suitable for all individuals. The high degree of leverage offered in the Forex markets can work against you as well as for you. Before deciding to trade in the foreign exchange markets you should carefully consider your investment objectives, your level of experience, and your risk appetite. The possibility exists that you could sustain a loss of some or all of your equity and therefore you should not invest money that you cannot afford to lose. Only true discretionary cash should be used in trading. You should make yourself aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any questions or concerns as to how a loss would affect your lifestyle.

Hello everyone, I’ll be monitoring the following FREE Gap trade opportunities this weekend. I am currently developing a Professional Trade Call service. Once my lawyer reviews the mandatory disclaimers non-disclosures, etc. I’ll open the doors to the first small group. Subscribers to our e-zine will have first priority for these first memberships. Look for more information to follow.

GBPUSD:
Closed at: 1.4440
Currently at: 1.4489
Potential Gain: 49 pips

GBPJPY:
Closed at: 138.46
Currently at: 139.06
Potential Gain: 60 pips

These may change considerably by market open. These gap trades have always made me money! These are as sure a thing as I have ever traded. These market gaps close! Sometimes in an hour or so, sometimes over night, sometimes in a few days. the important thing is that THEY DO CLOSE over 90% of the time!

In the summer, I usually open my trades, hit the golf course, and by
the time I finish, the trades have closed out at my target price.

I’ll post the update with the actual gap trades at market open tomorrow.

Thanks,
Tim

Sunday will mark the first Gap Trades posted this year at nononsensetrader.com.  I’ll post the gaps to watch as soon as the market opens at FX Solutions.  Actual Gap Trade Calls will be broadcasted to The Blue Zone Trader e-zine.

Please remember to use your own money management.  There is no such thing as  sure thing.  These gap trades are as close as I’ve ever seen to CERTAIN, but they aren’t.  I’ve actually only lost money on one gap trade in two years.  But it can happen.  You must be willing to sit on a trade for the week if that’s what it takes.  I’ve never had one go more than three days, and it was a HUGE winner.

Talk to you later!

Tim

The following currency pairs fit the criteria for a trend.

Pair         | Timeframe | Direction | Potential Trade

GBPUSD  |  Daily         |      Bear       |    Monday, 16 March

AUDNZD | Daily         |     Bull         |   Monday, 16 March

AUDCAD | 4 Hour      |    Bull         |  Monday, 16 March

EURCAD | 4 Hour       |    Bull         | Today, 13 March

If I take a trade on any of these, I’ll send a trade report to my e-zine.   Make sure to subscribe free for these trade calls.