【“Can Do” Scalping Course ①】Capturing Market Reversals with “Contrarian” Scalp [Forex Demon]

This is the scalping method!

① The main battlefield is the 1-minute chart
② Enter on a counter-trend
③ Use Envelopes and RSI

Table of Contents

1. Confirm market reversal with Envelopes
2. Achieve high-precision entries with two refinements
3. Point 1 | A classic counter-trend strategy aiming for reversals after sharp moves
4. Point 2 | Use Envelopes to determine the timing of counter-trends
5. Point 3 | Apply RSI as a filter to further enhance the edge
6. Point 4 | Tips for increasing win rate: "pulling in the entry"
7. Point 5 | Adapt settings and strategy according to the time of day
8. Trade Example ① | Reverses immediately after entry and secures profit with ease
9. Trade Example ② | Bypassing two bars to significantly extend the range captured

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※This article is a re-edited version of an article from FX攻略.com, November 2018

Kawase Oni (Kawase Oni) Profile

Graduate of Sophia University, Faculty of Foreign Studies, English Department. Former foreign funds trader, former FX dealer at a securities firm, currently president of an investment company. Specializes in ultra-short-term scalping with settlements completed within a few minutes of entry, executing hundreds of trades per day. All trading history is published on the official blog “FX Scalping Master!”

Official Site:FX Scalping Master! Kawase Oni

Confirming Market Reversal with Envelopes

As a scalping expert, Kawase Oni’s favored method is counter-trend scalping aimed at market reversals. This is the exact opposite of trend-following, where you buy when prices go up and sell when they go down, repeatedly trading within a short period.

For counter-trend trading, the key is to accurately identify reversal points. Kawase Oni uses the Envelopes technical indicator as a timing tool, noting that reversals tend to occur after sharp rises or falls. Envelopes are drawn as bands offset above and below a reference moving average (not displayed here). Prices rarely stray outside the bands except during rapid moves. By skillfully leveraging this property of Envelopes, you time your counter-trades accordingly. Specifically……