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Scalping ideas (ADX and Bollinger bands)

Scalping with the help of ADX:

To scalp effectively with minimum time spent, Forex scalpers need to know when the market is trending well and when there is nothing to wait for.

To find out about the strength of the market trend use ADX (Average Directional Index) indicator.
ADX does not show the direction of a current trend, it only shows the strength of the trend. Reading below 20 indicates a weak trend, reading just above 20 – gaining new strength trend and reading above 40 – very strong trend.


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Hi didi,

I will, I'd get to it on weekend.
Thank you.

Regards,
Edward

hello edward.pls i'm still awaiting ur reply as to the question regarding bollinger band setting 20,2.thanks

Thank you for your patience, didi.
As much as I feel guilty about this delay, I'm overloaded with the work recent days which leaves very little time to do other things.
Anyway, here it goes finally :)

BB scalping ideas Forex

There are two BBands on the chart:
Bbands (Period 20, deviation 1)
Bbands (Period 20, deviation 2)

When price stays inside BB (20, 1), there is no clear trend, taking trades inside dev1 lines is risky.
Once price gets outside dev1 lines (dotted purple lines) - there is an indication of a some trend starting.
While price stays in between dev1 line and dev2 line of Bbands - there is a good trend in place. You can opt to hold onto your trade until it remains inside this trending area.

However, when price hits dev2 line and closes(!) outside it AND the trade has got some positive pips - it is time to either lock the profits, or bring in a trailing stop right behind the most recent candle and chase it with each new candle.

That's the idea, which helps to classify market behavior into phases.

Best regards,
Edward

thanks for ur help

I've found that ADX direction is more important than level. Basically a rising ADX indicates increasing trend strength. Some of the best trades are when ADX rises sharply from below 15. If you wait until 20-25, the move will frequently be over by then.
Exception: One very important signal is when the ADX level has risen to a level above the DMI (D+,D- lines). The higher ADX is above both DMI lines, the more likely the trend will end soon. Many times a reversal is coming, but sometimes just consolidation.

Could you tell me how to do the two settings of Bollinger Band I.E.
BB(20,1)
BB(20,2)
on the I.G.Index Trading Platform.
Awaiting your reply soon.
Thank you EDWARD
From SADAQAT

Hi SADAQAT,

I don't know. I think that's a question to IG Index company.

Regards,
Edward

Thanks Edward
I am new to forex and still learning on a demo account.Could you suggest any very simple strategy for EUR/US$ which is tried and tested by yourself and I try on my demo account and gain my confidence in my trading
regards
Sadaqat