Thursday, March 6, 2014

Understanding the Market Condition : Nikkei JPN225 Scalp Trade Example : v

Understanding the Market Condition : Nikkei JPN225 Scalp Trade Example :

Well its my first time trading the Nikkei, ! but its on a demo account , but i'd like to share the chart and why i took it

First I look at the big picture - 4hr chart






During the Asian Session, the Nikkei jumped very aggressively and jumped and stayed above an important level of 15000.  
  • As price approaches a fib retrace level of 61.8, its an area i will look for clues if market will take a pause
  • Drawing in fib extensions, i saw a 127.20 fib ext level just above 61.8 
  • When market got there, i zoomed in a 5 min chart and see it bounced from there, so i just took a short trade there
Why was i confident?
  • The time of the market was nearing Asian Lunch time where Hong Kong share market takes an hour lunch break and sharemaket takes a pause.  - So the market condition should slow down, and earlier traders who got in the long of the nikkei most likely close their positions.  -
    • So understanding the market conditions is very important.
  • Market went in my way, then i closed my order once price has stalled and performing 5min pin candles, and also the time is when every trader gets back from lunch, and market could resume its bullish momentum.  
End result
  • I got 700points  from initial 400 risk.  so nearly a 1:2 risk reward.
  • As you can see, market is starting to pick up its momentum and if i were to kept my short opened and be greedy, my profits became negative!
More advanced tip:
At the same time , you could have traded a yen pair, say USDJPY, and could have went short, with the same result - (Nikkei and Yen Correlated)


Happy Trading!





AUDUSD 5min / 15min Chart Cypher

AUDUSD 5min / 15min Chart Cypher



Today I got bit more time thought i post this scalp i did on the 5 min chart

It has hit both my TP1 and Tp2 as i write this blog. happy days..

Why i took this
  • Very perfect cypher where all fib levels line up
  • PRZ is also a 61.8 retrace from the sessions high to low, which makes it more convincing
  • I didn't wait for price action, as i am dealing with 5 min chart very fast pased,
  • I was only risking i think 4 pips but a larger lot size to make it worthwhile
  • TP1 was 4 pips (38.2% retrace) , TP2 was 6 pips (50% retrace)
Should i have been greedy and wanted more pips, i might have lost all my profits, as its trying to shoot up again while i write this post

Note - pips profit doesn't sound much, but it all depends on your Money Management. If you risk 2% then you gained 3 % on this trade alone. in i think a few minutes or less.

Also, doing these scalps require a very low spread broker, Contact me if you want recommendations.
Currently talking to my broker to get commission from my referrals

Happy Trading!