فوركس ساتو

QUICK TRENDS
In my eBook “Forex Sailing” I discuss in detail the fractal-like nature of
trends, and how to work with them. I’d recommend you read what I wrote on
this subject there as it has valuable application to scalping.
Here I’d like to briefly discuss the value of paying attention to very short term
trends that you’ll see on your 1 minute charts. Again, read what I wrote on
this related subject in “Forex Sailing” for a more in depth look at this topic.,forex sato

Each price increment on this 1 minute chart is 10 pips.
Earlier in this eBook I discussed looking at the trend of “petit trends”, of just a
little wave on your 1 minute charts (that might last only several
minutes). What I’m discussing here is a little bigger than that perspective;
kind of moving into the turf of what I’d call “micro trends” (as defined in
“Forex Surfing”).forex sato
In “Forex Sailing” I elaborate upon the importance of trend following, and so
here point out to you to draw your trendlines on your 1 minute charts. You’ll
find that in this small scale your trends will typically hold for a relatively short
time (say 30 minutes to maybe a few hours). Nonetheless, when you are
scalping “petit trends”, or just going for relatively short pip distances then you
want to be well aware of when a microtrend has ended for two reasons: (1)
To get out of your existing trades ASAP to lock in most of the profits. (2) To
get in on a potentially new trend.
Realize that reversals of this tiny trends is often just a retracement (Fibonacci)
and may return continuing in the original direction, but as a scalper you’ll be
able to catch it on it’s return journey (as it breaks that trend), thus often being
able to catch pips three times through the same price range! (as seen on the
right side of the above chart)
As a scalper remember this concept: The trades you engage in are virtually
identical to the types of trades you might engage in on larger scale
perspectives. The only difference is that the duration of your trades will be
much quicker (lasting typically minutes to maybe a couple of hours) and the
amount of pips captured will be proportional (but because you’ll be able to
trade more lots the profits will often be comparable to the profits you’d catch
in other scale strategies).
Follow the trends even in this tiny perspective and you’ll typically do
well. So go nuts & draw countless trendlines on your 1 minute chart and trade
accordingly.
Tip – It is usually a good idea to wait until you have a reversal confirmation at
the break of a trendline, such as taking out the previous bounce high/low, and
sometimes you might want to wait for a tiny wave to happen in the new
direction. Pay attention to the concepts of trading a “petit trend” earlier in this
eBook.forex sato
The common trader’s saying is that “the trend is your friend until it ends”. I
disagree; sure it’s your friend while the trend progresses, but when it ends it is
just the start of another “friend”. Considering how easy this is I’m surprised
more people haven’t caught onto this, especially considering how profitable
this can be! It’s like stealing candy from a baby!
Final thought about this – of course it is nice when you have a day that keeps
trending strongly throughout the trading session (market overlap time), but
even on a wimpy day when the markets are just consolidated then you’ll be
able to have fun scalping the trends.
Remember to practice this method for a while in a demo account so that you
can familiarize yourself with the nuances of trading in this manner.
forex sato