Friday, October 9, 2009

#1. SYSTEM: Breakout Scalping System

Using breakouts to scalp the market is by far the most popular scalping method.
One reason is that it works, and the second is that it is the simplest.
When looking for breakouts to scalp, I’m only interested in the first-two hour the different global bank sessions. This includes the:

• Asian or Tokyo session open at 7:00 pm EST
• London session open at 3am EST
• New York session open at 8am EST


I will only discuss the BEST session that I and the Banks Love’s so much because it gives you A LOT more trading opportunities. Join Me as I welcome MR. London Session!

The Tokyo and London markets overlap for one hour between 2 am and 3 am EST. What that means, practically speaking, is that the London session can be seen as a sort of “continuation” of the Tokyo session, but with wildly increased volume and volatility.
As the comparatively slow Tokyo session prepares to go to bed, the wild London one is just waking up. At that moment, around 3 am EST, there is significant market acceleration with thousands of transactions.
As the different banks come online and start moving money, the odds of the
market moving and causing a sustained breakout go up.
And the more breakouts we get, the more opportunities we have to scalp some quick pips!

Trading Setup
• Enter Trade on 1hour Chart.
• Trade ONLY GBP/USD, GBP/JPY, EUR/USD, USD/JPY, USD/CHF, USD/CAD
• At 2:50am EST, setup Your BUY and SELL Entry point with the High and Low of Asian OR Tokyo Session. Add and Subtract 5pips to Both sides and use that as Your breakout point.

NOTE: You have to be fast in setting this system before 3am EST London Opening as the market will move fast.

Take a look at the example below. See how I setup Breakout Scalping System with the Asian OR Tokyo Session High and Low ready for Profit to breakout





Trading Rules
If the Price triggers or breaks Upward (BUY), delete Sell setup. Inversely if the Price triggers or breaks Downward (SELL), delete Buy setup.
If the breakout is not there, then delete Both BUY and SELL setup trade.
One of the biggest mistakes a trader can make is trying to wait for the market to breakout When there is NO Breakout.

StopLoss should be 20pips. Always move it to Break Even as soon as possible.
Never risk more than 2% of your account on any one trade at 2:2 ratio.
Take Profit should NOT exceed 20pips.

Take a look at this Great breakout Upside (BUY)



Take a look at this breakout Downside (SELL)



Take a Look at this NO Breakout Trade. Stay Away.


NOTE: You need a fairly tight stop-loss when scalping breakouts,
because the markets move quick on you (especially during session opens)
and you don’t want to be on the wrong side of a scalping trade when you’re
intended return is only 10 – 20 pips.

Have a Nice Pipis!
make minimum of $200 weekly from our second to none forex signal

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