Scalping with the SaneFX Indicators

     Scalping is the riskiest of trades much many people enjoy the action! It is done from the 1 or 5 minute charts.

   Gold and several currencies can be scalped using the 1 or 5 minute charts as shown below. We don't use the trade arrows for scalping (although you may choose to). During active trading hours, many instruments oscillate up and down, with the occasional bigger rise or fall. For example, gold regularly oscillates by about 20 pips with frequent rises or falls of over 60 pips. Many Forex accounts include gold.

    We can make a steady small profit like this but by being continuously in a trade following the red and green signals, we will always be in a position to catch the bigger moves.

 Gold - 1 Minute Chart, $1 divisions (10 'pips')

    Here we see the SaneFX indicator in action on a 1 minute gold chart over a period of 60 candles, exactly one hour. Unless we are in a period of obvious consolidation, we employ a method of 'continuous trading'. In other words, when one trade closes, we open another in the opposite direction - as indicated by the change in colour of the TCCI indicator from green to red and vice-versa. Once the candle has formed, there is no repainting.

    It works rather like a moving average, or two moving averages crossing each other - except that there is almost no lag. By being in a trade all the time, we are always in a position to catch any big moves. The chart above is fairly typical on a day with action and you can see we pocketed over a $12 move on gold (the equivalent to 120 pips) in the hour.

    Forex moves more erratically than gold, so best to scalp using the 5 minute chart but the principle is exactly the same.