What are the most effective forex scalping methods on the euro and pound?
Looking for some concensus on what might be the best indicators — and combinations of indicators — that folks like to use, with insight into their setups, preferable trading times during the day, etc.
MACD gives the best results and it is easy to use as well. If the MACD line crosses the signal line it means that it’s good time for entry in the direction the MACD line were going. But remember to look for a short trade if MACD line falls below signal line and if it rises above signal line just go along. Now assuming that the price of the currency pair breaks above resistance or below support after the MACD crosses the signal line, then it would be considered as a signal of a big move indeed happening. Both the upward and downward crosses are explained in the diagram above.
Why wouldn’t MACD work in a range bound market? The problem is that in a range bound market, if you base your market entry points only on the MACD then by the time the indicator catches up to the current price, the price may have risen or fallen terribly to such an extent that making a profitable trade would be near impossible.
The Euro was down on Wednesday as investors continued to price in the likelihood of an interest rate cut from both the European Central Bank and the Bank of England alt on today. The European Central Bank is expected to cut its core rate by half a percentage point to 1.5 percent, and the Bank of England is expected to lower its rate to 0.5 percent on Thursday, also by half a percentage point. Lower interest rates can weaken a currency as investors move funds to where they earn better returns elsewhere.
At 5PM GMT, the Euro was flat versus the dollar at 1.2573, down 1% versus the CAD at 1.61, and up slightly to the Swiss Franc at 1.4796.
MACD gives the best results and it is easy to use as well. If the MACD line crosses the signal line it means that it’s good time for entry in the direction the MACD line were going. But remember to look for a short trade if MACD line falls below signal line and if it rises above signal line just go along. Now assuming that the price of the currency pair breaks above resistance or below support after the MACD crosses the signal line, then it would be considered as a signal of a big move indeed happening. Both the upward and downward crosses are explained in the diagram above.
Why wouldn’t MACD work in a range bound market? The problem is that in a range bound market, if you base your market entry points only on the MACD then by the time the indicator catches up to the current price, the price may have risen or fallen terribly to such an extent that making a profitable trade would be near impossible.
The Euro was down on Wednesday as investors continued to price in the likelihood of an interest rate cut from both the European Central Bank and the Bank of England alt on today. The European Central Bank is expected to cut its core rate by half a percentage point to 1.5 percent, and the Bank of England is expected to lower its rate to 0.5 percent on Thursday, also by half a percentage point. Lower interest rates can weaken a currency as investors move funds to where they earn better returns elsewhere.
At 5PM GMT, the Euro was flat versus the dollar at 1.2573, down 1% versus the CAD at 1.61, and up slightly to the Swiss Franc at 1.4796.
References :
http://www.finexo.com/marketReview
http://compare-forex.com/macd-and-its-importance-as-a-forex-indicator/
Use Frap Turbo it use all the best technical signals for Forex trading. Read more at Http://forex.matthewhars.com
References :
Http://forex.matthewhars.com
[...] What are the most effective forex scalping methods on the euro and … [...]