Thread: Short Term Trading Strategies Using Market Depth

GBP/USD Hitting Resistance- Bears May Get Another Opportunity to Take Pair Lower

Pip and Run Trading Results: +23 Pips- I had a request from a webinar attendee who wanted to see what 1000k lots at $100.00/pip looked like so I fired off 2 trades one on GBP/USD and EUR/USD. GBP/USD short limited out in the usual 10 minutes for 10 pips, however the Euro short took a little longer than expected

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Originally Posted by Alejandro Zambrano

I jumped on the bandwagon this morning - its looking good

Originally Posted by Gregory McLeod

GBP/USD Hitting Resistance- Bears May Get Another Opportunity to Take Pair Lower

Originally Posted by Gregory McLeod

I went ahead and got short, I might have pulled the trigger too early, would not be the first time. However, I think your 1.6050 is a good price target as it was an area of consolidation. Cable got a big head start on the Euro with this run up so it may be the first to start moving down. That's just my two pips!

Are you in anything now?

Originally Posted by Gregory McLeod

I am short GBP/USD at 1.6110 with Limit at 1.6012, Stop 1.6186

GBP/USD in Dive Mode!

Who took the southbound train on GBP/USD? 80 pips is a good haul!

The pound dropped like a rock after the Bank of England Inflation Report stated that inflation would hover around 2% for the next 2 years. Interest rate expectations are the chief drivers of Forex rates and the prospects of a rate hike from the Bank of England vaporized.

The pound dropped over 80 pips in 5-minutes from a high of 1.5972 to a London session low of 1.5888.

I went long 1000k at 1.5895, catching the proverbial falling knife, to grab 6.8 pips in 5 minutes. I jumped back in again at 1.5909 as price broke above the S2 Daily Pivot to grab 10 more pips. This trade took a little bit longer at 10 minutes for 10 pips. So I am doing about a pip a minute.

I quickly noticed a similar rebound in the AUD/USD when UK- Nimmy asked for my 5-minute Elliott wave count. When Nimmy asks me for a count, I know there is a trade on her/his mind.

I got long at 0.9905 and limited out 10 minutes later at 0.9915.

I did some scalping in gold but my one-click settings were too tight for the the wider spread on Gold and I was stopped out as soon as I placed a trade. After making the adjustments, I scored 107 so I had mixed results and ended up -2.1 pips


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It was good to see Carol, Joyce, Franosh, Dan, Glenn, Maurizio and the rest of the Pip and Run nation!

Over all we had a great session filled with analysis of various pairs, answered questions, as well as +18.7 pips!

Join me tomorrow at 5:30 ET for Pip and Run !

Happy Pipping!

Greg McLeod
Daily FX Forum Moderator/Trader

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Pip and Run Trading Room Results: 5 Wins out of 5 Trades for +21.8 Pips in 25 minutes

End-of-the-month position squaring by traders gave ignited Euro and Aussie rallies. I was able to scalp 13.5 pips shorting the Euro as correction was running out of steam. I also snagged 8.1 pips out of shorting AUD/USD.

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Greg McLeod DailyFX Forum Moderator

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Pip and Run Trading: 5 Wins out of 6 for 24.2 Pips.

How did you all do in your London session scalps?

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Greg, When using pivot points, do you recommend using daily pivot points on short time charts (i.e.30 min) or 30 min pivot points on 30 min charts?

Also, is there a value of using pivot points on 5 min charts? Thanks for your good work. Rich

always use daily pivots on all of your charts - they are the support/resistance levels that prices bounce off

Pip and Run Trading Results: 3 Wins out of 3 Trades for +38.3 Pips

Global equity "Risk On" sentiment carried over to the currencies as the US Fed is expected to weaken the dollar to stimulate the slowing US economy. Commodity currencies are the big winners at the expense of the US dollar and Japanese yen.

Australian dollar and Euro breaks above morning highs provide good break out setups.

Terry, John, Brian, and Scott were Pip and Run trading room heroes with their participation.

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Originally Posted by rtd

Greg, When using pivot points, do you recommend using daily pivot points on short time charts (i.e.30 min) or 30 min pivot points on 30 min charts?

Also, is there a value of using pivot points on 5 min charts? Thanks for your good work. Rich

Hello Rich! Glad to see you posting! I hope you and your family are well. I use Daily pivots on all time frames, however, the DailyFX Plus Technical Analyzer uses 30 minute Pivots.

I have not used pivots shorter than daily. I have used weekly and monthly if price action exceeds R1 and S1 Pivot levels.

Hi Greg

I've been using your method of scalping - buying when the price bounces off support and selling when the price bounces off the resistance

Questions - do you wait for the price to be totally above support/below resistance with the ssd crossing or could the price be either at support/resistance or slightly above/below resistance/support?

It's hard to time the price, the support, resistance and the ssd crossing at times - if you wait too long then you lose the trade

any hints would be appreciated


I use this method from 6am till 10am - and I will only go in after reports and the NY stock market open

to confirm - you use this method from 3am till 8am?

Thanks

Steve K

Pip and Running 4 Wins out of 5 Trades for +31.9 Pips

Hello Traders!

We had a great scalping webinar where we just traded the ranges grabbing between 4 and 11 pips in the matter of a few minutes.

Daily Classic Pivot points provide great areas to trade pure price action in this range bound market.


Join me tomorrow at 5:30 ET for Pip and Run !

Happy Pipping!

Greg McLeod
Daily FX Forum Moderator/Trader

Originally Posted by s_kowaliw

Hi Greg

I've been using your method of scalping - buying when the price bounces off support and selling when the price bounces off the resistance

Questions - do you wait for the price to be totally above support/below resistance with the ssd crossing or could the price be either at support/resistance or slightly above/below resistance/support?

It's hard to time the price, the support, resistance and the ssd crossing at times - if you wait too long then you lose the trade

any hints would be appreciated


I use this method from 6am till 10am - and I will only go in after reports and the NY stock market open

to confirm - you use this method from 3am till 8am?

Thanks

Steve K

Hello Steve,
I like to see a candlestick reversal pattern at or near the support or resistance. I also am on a 5-minute chart. Sometimes stochastics will lag price by a bar or two so the candlestick pattern would be my first look and then I look at stochastics lines crossing to confirm the move as it moves up from below the the 20 reference line or from above the 80 reference line.

See today's trading example below showing 34 pip drop and then a rise back up