just about everyday you’ll find some kind of interesting scalpable opportunity!

just about everyday you’ll find some
kind of interesting scalpable opportunity!

just about everyday you’ll find some
kind of interesting scalpable opportunity! Some days you’ll score more pips
than on other days (ok, this was a better than average day), but EVERYDAY
As you can see, there was a Fundamental being released at 05:00 EST, and at
05:02 EST a candle shot up 22 pips, then the market continued on upwards. I
won’t give you the “play by play commentary”, but will simply discuss what
is important to view on this chart.
Before 05:00 EST (before the FA) the market was already in an uptrend, and
the S.E.X. lines were already spread out. With the sharp increase in price, and
the sharp increase in the trend’s steepness the S.E.X. lines spread out even
more. It is interesting to notice that the EMA crossed the SMA of the 30
S.E.X. pair right before (a few candles before) it reached the highest price,
and then the market entered right into a consolidation a few minutes before
06:00 EST (the end of the Asian/European overlap time – notice the whole
thing happened between 02:00 & 06:00 EST only lasting through the overlap
time). The 15 and the 30 S.E.X. pairs “bunched” right at 06:00 EST, and the
60 S.E.X. pair quickly followed into the “bunch” as the market entered into a
tight sideways consolidation.
I wanted to show you this chart for a couple of reasons. First of all notice the
“Head & Shoulders” reversal of the trend at the top. Also notice the behavior
of the S.E.X. Lines at the reversal – they didn’t bunch by rapidly switched
direction. The peak height on this chart happened at 3:30 EST, about 1.5
hours into the Asian/European overlap time. It is common for the market to
abruptly change directions early in an overlap time. Here you see a perfect
example of a change of trend with a very obvious reversal (Head & Shoulders
/ King’s Crown), supported by the S.E.X. Lines also indicating a new trend. It
is also worth noticing how when the market came down to meet that previous
support price level (the stagnant area before moving up to the peak) that the
market did a little bounce up from that level, reacting to that previous support,
before resuming its down trend. Later it repeats the support price level
bounce as it reached another previous support level (off the left side of this
chart; not fully shown here, just the tail end of it is shown on the extreme left
side of this chart picture), and then after it recovered from the support bounce
it shot down. Over time you’ll learn to pay more attention to these kinds of
things. Here is the same chart viewed a little wider with those support lines
drawn for you to clearly see.
Here are a few more tips in using S.E.X. in conjunction with scalp trading:
• During a retracement in your petit trend the S.E.X. lines will bunch
together, or less frequently, if there is a large swing doing a larger
retracement then the S.E.X. lines may open slightly for the retracement
direction.
• Use the S.E.X. line pairs almost like a moving trendline. Often
during a strong movement the market will bounce the 15 period
pair. As it slows it may even penetrate the 30 period pair, but usually
when you see a 60 period pair being penetrated then you are definitely
seeing a retracement (or potentially a reversal).
• When your micro trend reverses you will of course see a trendline
break, your top wave retraced past the bottom of the wave, and then
potentially there will be a new micro trend. Watching the behavior of
the S.E.X. lines will confirm to you if a new reverse micro trend is
forming by opening up (the lines spread). Or if the lines are bunched
then you have a little consolidation (after your previous trendline
breach), and the direction is yet uncertain – could go up or down (more
often resuming the original micro trend), and once the market breaks
out of this stagnant consolidation pattern then you can engage into
trading (in the breakout direction of course).
• When viewing a tight consolidation (say 10 to 15 pips) then the
S.E.X. lines will be bunched for sure. Slight oscillations in the tight
range will cause the lines to open then quickly rebunch. This is not a
good time to rely on S.E.X. lines for scalping purposes.
• When viewing larger consolidation (say 30 pips but preferably way
more) then the S.E.X. lines can be useful to help you spot petit trends
and signal the ending of petit trends for within range trading
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