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Scalping system #2 (Morning breakouts)

The closer time gets to 8:00 EST in the morning the less movements can be seen on the chart. It is a well known fact that once the Forex market “hears morning bell” at 8:00 am it is going to really move – stretching well doing morning exercises :).

What is needed from traders? Only to place 2 orders: above and below the last candle’s high and low at 8:00 am EST and join morning stretching having your 5 pips safely.

This is a scalpers’ breakout method, for which waiting long equals losing of precious time. If you want to join big traders your buy/sell orders must be above and below the price range created from midnight to 8:00am EST.
Currency pairs: EUR/USD, GBP/USD.


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"Only to place 2 orders: above and below the last candle’s high and low at 8:00 am EST and join morning stretching having your 5 pips safely."

What is the appropriate time frame for this, then?

The time frame should be 1 hour.
So, by 8:01 am EST the two orders must be already in place based on 7:00 am EST candle.

So is that the time frame for the chart i.e. to identify the last candles HL using a 1 hour chart?

and I guess the idea is to profit on 4-5 pips within a short period of time after market opens.

Yes, one should use 1 hour chart to identify the high and low of the last candle;
and 5 pips profit usually comes very soon after the New York market open.
Edward.

Am going to try this out to see if it works well. Thanks for the awesome job.

Maaruf

Edward,
This is great work!

What should be the Stop Loss?

Ideally, we want to see the opposite order as a stop-and-go. If a stop appears to be too far, then it is up to a trader to set the limits... There are many parameters involved, such as currency volatility, personal risk limits and so on that makes it difficult to suggest a certain stop value.

For my trading I use:
For scalping maximum risk is 10 pips.
For traders with higher profit targets can be 15-20 pips.

Happy Forex trading!
Edward.

Edward,
This is great work

so all what i do to place 2 orders buy $ sell stop based on High & low 7:00 am EST candle.

thank you

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