Hello all - I've been using the new tools for a few weeks now and wanted to share the way I've been grabbing some reversal scalps with it - I'll call it the wolfepack method for lack of a better name, lol.
I've got 3 windows open and overlapped on my traders desktop (works for a one screen set-up):
The Scalping Currency Matrix Histogram
Currency Matrix Dashboard (only paying attention to the Day Trader portion of the window - left side)
Scalping Matrix Dashboard (only looking at the far right side of the window)
Here is how I use them, I have my brokerage account open and loaded to 5 min charts on another screen - I only use a 2 screen system to trade. I pay most attention to the Scalping Matrix, that is why it is infront - I wait for the PBT to over extend in the dark green or dark red, if the Global Trend Value is in the lighter green or red, I need one more histogram to also over extend with the PBT - otherwise just need the PBT, then I look at the Currency matrix dashboard (Day trader) to confirm that both currencies are maxing out on that chart - for a trade to exist they normally hit the 90-100 levels, and then move my eyes finally to the far right to watch the Scalping matrix histogram. This seems to be the first indicator to reacted to the reversal. I normally only watch one to 2 pairs max at this point. The entry point of your trade (takes a bit of practice to nail it) is confirmed by 2 things, the traders desktop indicators and simple price action on your 5 min candlestick charts. The first part of the signal is the Scalping Matrix Histogram, those 2 lines associated with the hot pair will make a sharp hook in the opposite direction - and it will be a sudden sharp hook, a noticeable one, then the Day Trade bars will move in their opposite direction, and finally the PDT will make its reversal move - all 3 of these will happen pretty quickly together I've noticed. Then hit your price chart on your trading platform and look for some simple price action to indicate a reversal or pull back , a doji or pin or hammer or shooting star - then enter in the reversal direction. I use a 20 pip default stop to start and adjust my take profit depending on a few things. I will look at daily pivot levels as target sometimes and confirmations of reversals as well - it's nice to see when the reversals happen at daily pivot levels - an added bonus for confirmation! My target will be one of 3 things usually - 6 to 10 pips - a daily pivot level if it's not too far away (less than 20 pips) or if your reversal is in the same direction as the Global Trend value (great trading opportunity) - then I will look to use the daily pivots as targets for sure - maybe even a couple of them. I will move my stop to usually 5 pips or even break even once I'm up 6 or 7 pips and then manage accordingly. If your trade is 15 pips or so against you, you just need to work on timing - sit on your hands a bit longer!!, or maybe your trade is news related - ALWAYS check new before your trade - if there is high impact news approaching, just wait an hour or so before you trade. Trumps daily rants have impact too, so maybe pay attention to make sure he isn't talking somewhere! Also, check the spreads before you trade - need small spreads for scalping. I'll keep adding to this thread and feel free to add your own info as well!!
I've got 3 windows open and overlapped on my traders desktop (works for a one screen set-up):
The Scalping Currency Matrix Histogram
Currency Matrix Dashboard (only paying attention to the Day Trader portion of the window - left side)
Scalping Matrix Dashboard (only looking at the far right side of the window)
Here is how I use them, I have my brokerage account open and loaded to 5 min charts on another screen - I only use a 2 screen system to trade. I pay most attention to the Scalping Matrix, that is why it is infront - I wait for the PBT to over extend in the dark green or dark red, if the Global Trend Value is in the lighter green or red, I need one more histogram to also over extend with the PBT - otherwise just need the PBT, then I look at the Currency matrix dashboard (Day trader) to confirm that both currencies are maxing out on that chart - for a trade to exist they normally hit the 90-100 levels, and then move my eyes finally to the far right to watch the Scalping matrix histogram. This seems to be the first indicator to reacted to the reversal. I normally only watch one to 2 pairs max at this point. The entry point of your trade (takes a bit of practice to nail it) is confirmed by 2 things, the traders desktop indicators and simple price action on your 5 min candlestick charts. The first part of the signal is the Scalping Matrix Histogram, those 2 lines associated with the hot pair will make a sharp hook in the opposite direction - and it will be a sudden sharp hook, a noticeable one, then the Day Trade bars will move in their opposite direction, and finally the PDT will make its reversal move - all 3 of these will happen pretty quickly together I've noticed. Then hit your price chart on your trading platform and look for some simple price action to indicate a reversal or pull back , a doji or pin or hammer or shooting star - then enter in the reversal direction. I use a 20 pip default stop to start and adjust my take profit depending on a few things. I will look at daily pivot levels as target sometimes and confirmations of reversals as well - it's nice to see when the reversals happen at daily pivot levels - an added bonus for confirmation! My target will be one of 3 things usually - 6 to 10 pips - a daily pivot level if it's not too far away (less than 20 pips) or if your reversal is in the same direction as the Global Trend value (great trading opportunity) - then I will look to use the daily pivots as targets for sure - maybe even a couple of them. I will move my stop to usually 5 pips or even break even once I'm up 6 or 7 pips and then manage accordingly. If your trade is 15 pips or so against you, you just need to work on timing - sit on your hands a bit longer!!, or maybe your trade is news related - ALWAYS check new before your trade - if there is high impact news approaching, just wait an hour or so before you trade. Trumps daily rants have impact too, so maybe pay attention to make sure he isn't talking somewhere! Also, check the spreads before you trade - need small spreads for scalping. I'll keep adding to this thread and feel free to add your own info as well!!
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