Scalping system #2 (Morning breakouts)
Submitted by Edward Revy on April 22, 2007 - 10:03.
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?
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Edward, this is dave in virginia ...first, thanks for getting back to me..on the post..3 back....and i think you must have alot of patience...with all the questions from us new guys here.....ok...i really want to develop this method and so yes...i will experiment with different numbers..for a long time ...2 things
1-i thought when you place the initial entry orders...you set 2..one long..and one short...just as you outlined in the post to anthony...just before this one....so.now i am confused..because in the reply to my post...you said it was hedging???...and not a normal thing done??? where am i not getting it??
and 2)...when calculating the order entry point...in the beginning posts...
people said like 3 pips plus spread.etc......and now..i understand that when i profit...the broker will take his "spread" pips..off of my winnings....but i am curious....why would the number of pips of spread to the broker...be a factor when i am setting a entry point for the setup??...whats the corelation??
hey thanks man...dave in virginia
Hi Dave,
Setting two opposite orders Buy and Sell on one currency pair is known as "hedging".
It's a normal thing, although US brokers doesn't allow it anymore.
3 pips spread is added to the Profit target, because as soon as you buy/sell 3 pips will be subtracted from your account. If you aim for 5 pips without adding the spread cost (3 pips), your profit in the end will be only 2 pips, instead of 5.
Kind regards,
Edward
hi edward just wondering if a better way to enter a morning breakout would be rather to just buy or sell at the appropriate time when you feel a breakout is imminent rather than just messing around and setting up oco orders. For example if i look at the closing candle of 7 and wait for the value to go +5 or -5 points above or below the closing of the 7 candle just simply enter the trade and hopefully the trend should continue? By the way the gbp/usd looks like a better option to trade breakouts?? thanks adam
Hi Adam,
not many traders have a feel of the market; although all it takes is observation and a calm calculated investor's attitude. If you have the skill, you should definitely use it (so that when traders are trying catch any breakout, you'll be seeing & choosing your trading direction).
GBPUSD is more volatile, thus for many is a preferred choice for a breakout trading.
Kind regards,
Edward
did anyone have any look with this? i am thinking of using the method
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