Billions of traders are doing scalping

Good morning to everyone.

The day before yesterday I was out on business, and yesterday, when two adoptive cat kittens were welcomed by their prospective family of six, I couldn’t reply to messages. I apologize for that.

I haven’t been able to respond to everyone yet, but I will reply to the messages received yesterday a little later, so please wait a little longer.

Until yesterday, the USD/JPY had been almost a one-way rise.

It may also be influenced by the Bank of Japan’s policy not to raise interest rates sharply all at once.

More than that, I think the impact would be stronger if Fitch downgraded U.S. debt again.

From a historical perspective, I believe there will always be crashes.

That being said, for short-term traders like us, the priority is how things are now rather than what happens later.

I think this is more important.

The image shows a longer daily chart of USD/JPY.

Currently around the right-hand red circle, it’s at a fairly high level.

It appears to be forming a W top, but next week there seemed to be momentum to break through quickly.

If it breaks through here, 150 yen may come back into view, but if it rises, I’d like it to rise cleanly.

To all the billion-dollar traders who use scalping, please replace the blue circle’s low wicks with the 1-hour chart for reference.

From the left, as the candle stockpile rose and turned up, then fell to form the blue circle,

near the blue circle area, viewed on the billion-trader chart, is almost the first completion zone.

From the wick tip to the nearest low on the yellow horizontal line, it’s about 100 Pips.

If you enter a contrarian long near the wick tip and place a stop on the yellow horizontal line, the stop loss would be around 120 Pips.

I think there are people who see a moment worth contrarian entry.

① If it declines, average down up to the yellow horizontal line and cut loss on a break of the line.

② Hold one position and cut loss at the yellow horizontal line if it falls.

③ After going short, if it falls, take the position against the trend (hedge).

If it declines, I would choose ① and average down up to about 1000 lots, but you may enter according to your own funds.

This trade is not a scalping trade of billion-dollar traders, but on a 1-minute chart the same scenario occurs several times a day, so once you become accustomed to scalping, it can be worth trying.

The expected stop loss is probably around 30 Pips, so depending on your funds, proper risk management is essential.

Also, if this position succeeds, depending on timing, you would have captured the early stage of a trend reversal, so I would like to continue holding in the trend direction to maximize gains.

The key is to move the stop cleverly while nurturing the position.

From tomorrow the forecast is for rough weather due to a storm.

Everyone, please take good care.

Now, everyone, have a wonderful weekend.

Scalping that billion-dollar traders do

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https://www.gogojungle.co.jp/tools/indicators/42559

Stress-free irregular hedging (well, it hardly loses)

Unusual hedging in FX

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https://www.gogojungle.co.jp/tools/ebooks/19435