Round 3 Basic Scalping Strategy [Forex Demon]

We aim to have the famed FX trader nicknamed Kawae-Oni organize his ultimate method for scalping in a systematic way for this project. In the first and second installments, we整理ed the basic information about scalping, and now, starting with the third installment, we will delve into more practical content. This time, the technical indicator "Envelope" that Kawae-Oni uses will also make an appearance!

【All six installments where a master teaches you not-necessarily-easy-but-once-you-master-it-you’ll-have-it-for-life scalping techniques】
・Episode 1: Pros and cons of scalping
・Episode 2: How to start scalping well
・Episode 3: Basic scalping strategies
・Episode 4: Counter-trend scalping techniques
・Episode 5: Practical scalping techniques
・Final episode: Secrets to improving scalping

Episode 3 Table of Contents

1. There are only 2 buy/sell logics in scalping!
2. Presence or absence of a trend and basic scalping strategies
3. Mean-reversion entries and exit points in range markets
4. Characteristics of price movement when a trend occurs and trading strategies
5. What are the limits of scalping that rely only on intuition?

Kawae-Oni (Kawase-Oni) Profile

Graduated from the Faculty of Foreign Studies, Department of English, Sophia University. Former foreign funds trader, former FX dealer at a securities company, and currently President of an investment company. Specializes in ultra-short-term scalping where exits occur just minutes after entries, with hundreds of trades in a day. All trading history is公開 on the official blog “FX Scalping Master!” His notable book includes “Introduction to FX Scalping by Kawae-Oni” (Diamond, Inc.).

Official site:FX Scalping Master! Kawae-Oni

There Are Only 2 Buy/Sell Logics in Scalping!

In the previous two articles, we explained the魅力 and points to注意 when beginners try scalping in FX. In this article, we will finally discuss scalping logics and methods in concrete terms.

There are many methods called scalping techniques, but their underlying buy/sell logic actually consists of only two kinds. In other words, if you assume the near-future FX market will be in a range, you use the “counter-trend method,” and if you assume a trend will develop and continue, you trade with the “trend-following method.”

Although it may seem there are many scalping techniques, there are only a few criteria for determining a range or a trend; the basic FX trading strategies are almost the same. In fact, if you can accurately determine whether the near-future market will be a range or a trend, you can win with scalping without risk.

Therefore, in this article we will explain how to distinguish range markets from trending markets and how to think about counter-trend versus trend-following methods.

＜Two logics＞

【If you predict a range market…】Counter-trend method
【If you predict a trend market…】Trend-following method