Forex Scalping by Maxx Mereghetti - HTML preview

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“Forex Scalping”

Maxx your Profit!

 

Are You Finally Ready To Start Making Money Easily?

 

Hold on to the Large Traders tail, and enjoy the ride!

 

This guide was created by Maxx Mereghetti, and is offered FREE to all Forex traders.
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Table of contents
1.
  Is it possible to earn money on the stock exchange? ......................................... 21 

1.1.  What the brokers think ...................................................................................................21 

 

1.2.  What the institutional investors think............................................................................22 

 

1.3.  What the managers think................................................................................................24 

 

1.4.  What the traders think ....................................................................................................25 

 

1.5.  What do people starting out in trading think................................................................26  1.6.  What I think .....................................................................................................................26 

2.  The price moves without reason.......................................................................... 28 

2.1.  Technical analysis ............................................................................................................28 

 

2.2.  Oscillators .........................................................................................................................30 

 

2.3.  Automatic systems............................................................................................................32 

 

2.4.  The Holy Grail..................................................................................................................33 

 

2.5.  Money moves the price ....................................................................................................33 

 

2.6.  Who has money, decides..................................................................................................34  2.7.  Who has power, has money.............................................................................................35  2.8.  95% of the losses end up in the hands of 5% of the rich..............................................36 

3.  The trading method ............................................................................................. 37 

3.1.  The method’s ups and downs..........................................................................................37 

 

3.2.  Maximum duration of losses in time ..............................................................................40 

 

3.3.  Number of consecutive losses..........................................................................................41  3.4.  The trader’s goal is to “last” ...........................................................................................43 

4.  The model of the successful trader ..................................................................... 46 

4.1.  No trader has been trading all his or her life ................................................................46 

 

4.2.  All traders have had some difficulties............................................................................47 

 

4.3.  How a successful trader does face difficulties ...............................................................49 

 

4.4.  The approach of “start with a loss”................................................................................50 

 

4.5.  Everybody makes mistakes with operations..................................................................52 

 

4.6.  Daily and monthly balance..............................................................................................54 

 

4.7.  Earnings, losses and emotions.........................................................................................56 

 

4.8.  Trader or gambler ...........................................................................................................60  4.9.  My advice for those starting, and for those who have already started .......................61 

5.  Let me introduce the Forex ................................................................................. 62 

5.1.  The broker ........................................................................................................................62 

 

5.2.  The trading platforms: Metatrader................................................................................65 

 

5.3.  The Forex market.............................................................................................................66 

 

5.4.  Volatility in the Forex market in relation to the stock exchange.................................71 

 

5.5.  News on the Forex market...............................................................................................73 

 

5.6.  Leverage............................................................................................................................74 

 

5.7.  The PIP, the true star of the Forex.................................................................................76 

 

5.8.  Lot, mini-lot and micro-lot..............................................................................................78 

 

5.9.  Commission applied by the brokers: the spread...........................................................80 

 

5.10.  The broker “is the banker”.............................................................................................84 

 

5.11.  Reference currencies........................................................................................................85  5.12.  Swap ..................................................................................................................................89 

6.  The charts............................................................................................................. 91 

6.1.  How to set up a chart .......................................................................................................91  6.2.  The linear chart................................................................................................................93 

 

6.3.  The bar or OHLC chart ..................................................................................................94 

 

6.4.  Bullish bar.........................................................................................................................97 

 

6.5.  Bearish bar .......................................................................................................................98 

 

6.6.  Japanese candlestick chart............................................................................................100 

 

6.7.  Bullish candlestick .........................................................................................................102 

 

6.8.  Bearish candlestick ........................................................................................................104 

 

6.9.  The market trend ...........................................................................................................106 

 

6.10.  The primary trend and its four phases ........................................................................108 

 

6.11.  The trend.........................................................................................................................111 

 

6.12.  Upward trend .................................................................................................................112 

 

6.13.  The downward trend .....................................................................................................115 

 

6.14.  Trend and reversals .......................................................................................................117 

 

6.15.  Trend: fundamental concepts .......................................................................................117 

 

6.16.  Upward trendlines..........................................................................................................118 

 

6.17.  Channels..........................................................................................................................119  6.18.  Ascending channel .........................................................................................................119 

 

6.19.  Descending channel........................................................................................................119 

 

6.20.  Supports and resistances ...............................................................................................121 

 

6.21.  Dynamic supports and resistances ...............................................................................123 

 

6.22.  Static supports and resistances .....................................................................................123 

 

6.23.  The importance of a chart .............................................................................................127 

 

6.24.  Technical analysis and price .........................................................................................129 

 

6.25.  Technical analysis and chart analysis ..........................................................................132 

 

6.26.  Reversal patterns............................................................................................................132 

 

6.27.  Common aspects of pure reversal patterns .................................................................132 

 

6.28.  Heads and Shoulder.......................................................................................................134 

 

6.29.  Head and shoulders........................................................................................................135 

 

6.30.  Inverse Head and shoulders..........................................................................................140 

 

6.31.  Double top.......................................................................................................................145 

 

6.32.  Double bottom ................................................................................................................151 

 

6.33.  Rounding tops and bottoms ..........................................................................................156  6.34.  Cup with handle .............................................................................................................157 

 

6.35.  Continuation patterns....................................................................................................159 

 

6.36.  Triangles .........................................................................................................................160 

 

6.37.  Symmetrical triangle......................................................................................................162 

 

6.38.  Ascending triangle .........................................................................................................166 

 

6.39.  Descending triangle........................................................................................................169 

 

6.40.  Flag & pennant...............................................................................................................172 

 

6.41.  Pennant ...........................................................................................................................173 

 

6.42.  Flag ..................................................................................................................................175 

 

6.43.  Wedge..............................................................................................................................178  6.44.  Rectangle.........................................................................................................................183 

7.  Learn to read the market ................................................................................... 188 

7.1.  Technical analysis and reading the market .................................................................188 

 

7.2.  The importance of minima and maxima......................................................................189 

 

7.3.  New maxima and minima..............................................................................................190 

 

7.4.  Price breakouts and breakdowns .................................................................................192  7.5.  Time frame and scalping ...............................................................................................196 

 

7.6.  Method, perseverance and discipline ...........................................................................196 

 

7.7.  Market sessions ..............................................................................................................197  7.8.  The session breakout technique ....................................................................................199 

8.  Price analysis: Candlestick ............................................................................... 204 

8.1.  Price behaviour ..............................................................................................................204 

 

8.2.  Candlesticks. What they are and how you draw them. ..............................................204 

 

8.3.  Long black line / Long white line..................................................................................206 

 

8.4.  Short black line / Short white line ................................................................................207 

 

8.5.  Long black / white marubozu line ................................................................................208 

 

8.6.  Long black / white opening bozu line ...........................................................................209 

 

8.7.  Long black / white closing bozu line.............................................................................209 

 

8.8.  Spinning Top ..................................................................................................................210 

 

8.9.  Lower Shadows ..............................................................................................................211 

 

8.10.  Upper Shadows...............................................................................................................212 

 

8.11.  Doji lines .........................................................................................................................213  8.12.  Reversal Pattern.............................................................................................................214 

 

8.13.  Hammer and Hanging Man ..........................................................................................215 

 

8.14.  Doji Line .........................................................................................................................217 

 

8.15.  Engulfing pattern ...........................................................................................................220 

 

8.16.  Dark Cloud Cover..........................................................................................................222 

 

8.17.  Piercing Pattern..............................................................................................................223 

 

8.18.  Star ..................................................................................................................................224 

 

8.19.  Abandoned Baby............................................................................................................226 

 

8.20.  The Tri Star ....................................................................................................................227 

 

8.21.  Shooting Star and Inverted Hammer...........................................................................228  8.22.  Price and money.............................................................................................................229 

9.  To sell or to buy? ............................................................................................... 232 

9.1.  Scenario analysis ............................................................................................................232  9.2.  We always follow the big fish........................................................................................233 

10.  Correlations or alchemy?............................................................................... 243 

10.1.  Correlation among currencies ......................................................................................243  10.2.  Correlations in intraday operativeness........................................................................248 

 

10.3.  Gaps and correlations....................................................................................................248  10.4.  Scalping and correlations ..............................................................................................254 

11.  The range........................................................................................................ 261 

11.1.  Volatility, risks and profits............................................................................................261  11.2.  Rates ................................................................................................................................265 

12.  Appendix ......................................................................................................... 271 

12.1.  Price analysis ..................................................................................................................271 

 

12.2.  EUR/USD: case 1............................................................................................................272 

 

12.3.  EUR/USD: case 2............................................................................................................274 

 

12.4.  EUR/USD: case 3............................................................................................................275 

 

12.5.  GBP/USD: case 4............................................................................................................276 

 

12.6.  UPPER SHADOW: case 5.............................................................................................277 

 

12.7.  UPPER SHADOW: case 6.............................................................................................278 

 

12.8.  UPPER SHADOW : case 7............................................................................................279 

 

12.9.  LOWER SHADOW: case 8...........................................................................................280  12.10.  HAMMER: case 9 ......................................................................................................281 

 

12.11.  SPINNING BOTTOM: case 10.................................................................................282 

 

12.12.  Case 11 ........................................................................................................................283 

 

12.13.  BULLISH ENGULFING: case 12 ............................................................................284 

 

12.14.  HAMMER: case 13 ....................................................................................................285 

 

12.15.  LATERAL MARKET: case 14.................................................................................286 

 

12.16.  DOJI: case 15..............................................................................................................287 

 

12.17.  BEARISH ENGULFING: case 16............................................................................288 

 

12.18.  HANGING MAN: case 17 .........................................................................................289 

 

12.19.  HAMMER and LOWER SHADOW: case 18 .........................................................290 

 

12.20.  EVENING STAR: case 19.........................................................................................291 

 

12.21.  NEW MINIMA: case 20 ............................................................................................292 

 

12.22.  BREAKDOWN: case 21 ............................................................................................293 

 

12.23.  TEST: case 22.............................................................................................................294 

 

12.24.  GAP: case 23...............................................................................................................295 

 

12.25.  NEWS: case 24 ...........................................................................................................296  12.26.  Case 25 ........................................................................................................................297 

 

12.27.  Case 26 ........................................................................................................................298 

 

12.28.  EVENING STAR and HAMMER: case 27 .............................................................299 

 

12.29.  Broker: FxPro ............................................................................................................300 

 

12.30.  FxPro...........................................................................................................................301 

 

12.31.  Broker: Alpari............................................................................................................314 

 

12.32.  Alpari ..........................................................................................................................314 

 

12.33.  Metatrader..................................................................................................................330 

 

12.34.  News on the Forex market.........................................................................................343  12.35.  The tick by tick chart.................................................................................................351