Based on the basic buy/sell logic of scalping, introducing more practical techniques [Forex Demon]

Have you ever experienced a drastic reduction in trading opportunities due to the low volatility of the exchange rate? As a result, trading methods that worked when there was movement in price may not perform well.

Therefore, this time we will introduce more practical techniques based on the basic trading logic from the previous article (FX攻略.com September 2014 issue).

Table of Contents

1. First, re-check the basic trading logic
2. How to identify when the market is overextended
3. When to enter and exit
4. Practical Technique 1
5. Practical Technique 2
6. Practical Technique 3
7. Facing the market and sensing it by feel

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※This article is a reedited version of the FX攻略.com October 2014 issue

First, re-check the basic trading logic

The basic logic I excel at in scalping is to target the retracement of price when there is a certain amount of volatility.

Therefore, it is necessary to determine a certain level of volatility, and I think the volatility indicator (hereafter VI) fits well with the current market.

This measures the range of the high and low in the most recent 15 minutes and displays it as a line in the sub-window below the chart.

In the sub-window showing the VI value, a horizontal line is added at 15 PIPS. For example, when trading GBP/JPY, a high-precision signal occurs when VI is above 15 PIPS.

VI values indicate that good buy/sell signals appear when they are above 15 PIPS for EUR/JPY, EUR/USD, and GBP/USD, and above 8 PIPS for USD/JPY.

How to identify when the market is overextended

To identify market overextensions (overshoot)…