News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bullish
Oil - US Crude
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bullish
More View more
Real Time News
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/fqxw1AoKc1
  • Gold snapped a two-week losing streak but keeps price within the broader August downtrend. These are the levels that matter on the $XAUUSD weekly chart. Get your market update from @MBForex here: https://t.co/B3Jct6mIBD https://t.co/xTGIM2hRBv
  • $GBPUSD continues to move higher, despite Friday’s weakness, as vaccination hopes continue to fuel positive sentiment despite ongoing lockdown fears and downbeat UK data. Get your market update from @nickcawley1 here: https://t.co/S8UoHzOwFN https://t.co/qI6UZdggvM
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/6wxX6oQurn
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/w009tJEQZn
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/2AeO1AdD2M
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/INJz4NSugQ
  • Knowing how to accurately value a stock enables traders to identify and take advantage of opportunities in the stock market. Find out the difference between a stock's market and intrinsic value, and the importance of the two here: https://t.co/QszmdZX8cS https://t.co/qdrsi61CN8
  • It seems the markets are riding high, but risk is always lurking around the corner. Consider your escape plan before you find yourself in collapsing market. What are the top havens for different conditions in 2021? Find out from @JohnKicklighter here: https://t.co/1oeXWEsJkb https://t.co/IyQdfq29fz
  • Myth or fact? One thing is for sure, there are a lot of misconceptions about trading. Knowing the difference between common trading myths and the reality is essential to long-term success. Find out about these 'myths' here: https://t.co/EDvQdHfIPm https://t.co/R7pa7DsM8n
Learn Forex: Scalping Short Term Market Momentum

Learn Forex: Scalping Short Term Market Momentum

Walker England, Forex Trading Instructor

Article Summary: The EURJPY has advanced 327 pips from the November 21st open. As December trading begins, short term market momentum can be used to identify fresh scalping opportunities.

Trading a scalping strategy in the Forex market first requires traders to find and identify short term market momentum. Regardless of the strategy we ultimately end up executing, it is always imperative to have a trading bias to determine if we are looking to buy or sell a currency pair prior to moving in on a shorter term graph. Today we will review the ongoing EURJPY trend uptrend and see if there is an opportunity for continued upside momentum.

The EURJPY has been on our radar for some time now and was recently discussed in our previous discussion on market momentum. Since this point the pair has advanced as much as 327 Pips from the November 21st market open. With price now attempting to breach previous highs we will turn to our Building Blocks to find the key points in short term momentum in order to find scalping opportunities.

Learn Forex – EURJPY 4Hour Trend

Learn_Forex_Scalping_Short_Term_Market_Momemtum_body_Picture_2.png, Learn Forex: Scalping Short Term Market Momentum

(Created using FXCM’s Marketscope 2.0 charts)

EURJPY Building Blocks

Pictured below we can see our current Building Blocks, outlining market momentum using the EURJPY 30 minute graph. The analysis for Block 1 began on Wednesday November 28th. Shortly after this point the market printed its standing low for Block 1 at 105.26. From this point the market slowly advanced confirming market momentum to the upside by printing a Block 1 high at 107.65.

Strong trends must have price in both Building Blocks heading in the same direction. Currently the December 2012 low on the EURJPY resides inside of Block 2 at 106.84, however this low is higher than the previous low in Block 1. Also price has showed continued momentum printing higher highs all the way through the close of our analysis on December 5th. These market movements are indicative of a strong short term trend.

Learn Forex – EURJPY Building Blocks

Learn_Forex_Scalping_Short_Term_Market_Momemtum_body_Picture_1.png, Learn Forex: Scalping Short Term Market Momentum

(Created using FXCM’s Marketscope 2.0 charts)

With market momentum in both Building Blocks remaining higher, the short term trend for the EURJPY remains upward. With momentum identified scalpers may look to buy the EURJPY on future market advances. Alternative scenarios include a breakout under the Block 2 support, residing at its low at 106.84. A move below this point would conclude our running uptrend and at least temporarily change the trading bias on the EURJPY.

---Written by Walker England, Trading Instructor

To contact Walker, email instructor@dailyfx.com . Follow me on Twitter at @WEnglandFX.

To be added to Walker’s e-mail distribution list, send an email with the subject line “Distribution List” to instructor@dailyfx.com .

Been trading FX but wanting to learn more? Been trading other markets, but not sure where to start you forex analysis? Register and take this Trader Quiz where upon completion you will be provided with a curriculum of resources geared towards your learning experience.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES