Pink scalping is to trade a news
release.
I usually change timeframes between 15
Minute and 1 Minute charts when I’m scalping.
If I want to trade a news release, I
would have the 15 Minute and 5 Minute charts open.
Aside from the normal setup on 15
Minute charts, I also apply support and resistance lines following
the fractals formed on the price. On the 15 Minute timeframe, I just
place lines manually to indicate areas that have repeatedly served as
areas of support and resistance. I also draw trendlines to indicate
the price direction.
Indicators:
ADX (14),
EMA 14 close,
EMA 21 close,
EMA 40 close,
Trendline
Fractals or Swing High/Low
Pivot Points.
Pink scalping rules
I have two scalping methods of trading.
The first method is used for scalping during
news releases and the other is for
normal scalping.
News Straddle Approach
1. Set up a schedule for the day with
high impact news releases for the EURUSD,
GBPUSD, AUDUSD, EURJPY, USDCAD and
NZDUSD.
2. Five minutes before a high impact
news release, place a pending buy and a pending
stop order, both 20 pips away from the
price on the 5 Minute chart.
4. Set the stop losses 30 pips from the
pending orders.
5. Wait for a trade to be entered then
exit the trade manually with a profit of 5 pips or
more.
Normal Scalping Approach For Buy
Trades
1. On the 15 Minute chart, check for
any of the following signals:
a. The price is above the 21 period
exponential moving average (dark orange or
red).
b. The 14 period moving average
(magenta or purple) is above the 21 period
moving average. This indicates that the
trend is an uptrend on the 15 Minute
timeframe. At times, I also use 5 and 8
period moving averages. They should be
above the 21 period moving average too.
c. The ADX is sloping up and is above
the 30 level. This indicates that the uptrend
momentum is gaining strength.
d. The trendline indicator is slanting
up. This also indicates that the trend is an
uptrend on the 15 Minute timeframe.
2. Go to the 1 Minute chart and check
for the following signals:
a. The trendline indicator is slanting
up, which indicates that the trend is an uptrend.
b. The ADX is sloping up or is above
the 30 level.
3. Enter a buy trade on the 1 Minute
chart when any one of the following conditions
occur:
a. The price breaks a resistance level
or a previous swing high on the 1 Minute or
15 Minute timeframes.
b. The price bounced off from the lower
trendline on the 1 Minute or 15 Minute
timeframes.
c. The price pulled back to the 21 EMA
or a shorter period EMA on the 1 Minute or
15 Minute timeframes.
2. Set the stop loss level 30 pips
below the price, or below the previous low. Move the
stop to the entry price (breakeven) at
5 pips profit.
3. Exit the trade at a profit of 5 pips
or more.Pink scalping |
In this example, the trendlines are
going upward indicating that the main trend is an
uptrend on the 1 Minute and 15 Minute
timeframes.
I noticed that the price had bounced
from the lower trendline and was going up. Looking
at the ADX, it is also going up. So,
once price had crossed above the moving averages,
I entered a buy trade before the candle
closed.
I set my stop loss level below the
swing lows. As soon as the trade reached 5 pips in
profit, I exited the trade.
This example is an ideal trade, but in
case the price does not behave as expected, you
will have to take the profit that the
market is willing to give you.
The news scalping strategy for a sell
trade has the same guidelines with buy trades
because you enter both buy and sell
pending orders every time.
Follow the guidelines below to enter
trades without high impact news releases.
Normal Scalping Approach For Sell
Trades
1. On the 15 Minute chart, check for
any of the following signals:
a. The price is below the 21 period EMA
(dark orange or red).
b. The 14 period moving average
(magenta or purple) is below the 21 period
moving average. This indicates that the
trend is a downtrend on the 15 Minute
timeframe. At times, I also use 5 and 8
period moving averages. They should be
below the 21 period moving average too.
c. The ADX is sloping up and is above
the 30 level. This indicates that the
downtrend momentum is gaining strength.
d. The trendline indicator is slanting
down. This also indicates that the trend is a
downtrend on the 15 Minute timeframe.
2. Go to the 1 Minute chart and check
for the following signals:
a. The trendline indicator is slanting
down, which indicates that the trend is a
downtrend.
b. The ADX is sloping up or is above
the 30 level.
3. Enter a sell trade on the 1 Minute
chart when any one of the following conditions
occur:
a. The price breaks a support level or
a previous swing low on the 1 Minute or 15
Minute timeframes.
b. The price bounced off from the upper
trendline on the 1 Minute or 15 Minute
timeframes.
c. The price pulled back to the 21 EMA
or a shorter period EMA on the 1 Minute or
15 Minute timeframes.
2. Set the stop loss level 30 pips
above the price, or above the previous high. Move the
stop to the entry price (breakeven) at
5 pips profit.
3. Exit the trade at a profit of 5 pips or more.
3. Exit the trade at a profit of 5 pips or more.
In this example, the trendlines on both
1 Minute and 15 Minute timeframes are going
downward indicating that the main trend
is a downtrend.
After rejecting from an upper
trendline, the price had crossed under the EMAs. The
EMAs are also beginning to form a
downtrend.
The ADX is going up in the 1 Minute
timeframe while it is already above 30 level in the
15 Minute timeframe. I entered a sell
trade and set the stop loss level above the
previous swing high. As soon as the
trade reached 5 pips in profit, I exited the trade.
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