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. See our updated Privacy Policy here.

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
More View more
Real Time News
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/Dq7umm2uyz
  • RT @FxWestwater: $NZDUSD Struggles as RBNZ Hike Bets Dim. Australian Retail Sales, Chinese Data Near Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/27/NZDUSD-Struggles-as-RBNZ-Hike-Bets-Dim-Australian-Retail-Sales-Chinese-Data-Near.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https:/…
  • Heads Up:🇯🇵 BoJ Monetary Policy Meeting Minutes due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-09-27
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/bDBOkVQlOO
  • Senate GOP blocks bill combining debt ceiling with government funding - BBG
  • The Consumer Price Index, better known by the acronym CPI, is an important economic indicator released on a regular basis by major economies to give a timely glimpse into current growth and inflation levels. Learn how to better understand CPI here: https://t.co/nAa0fHHGbZ https://t.co/DuVdXjufw9
  • Japan says North Korea may have launched ballistic missile Kyodo via BBG
  • Senate GOP has votes to block debt limit, government funding bill - BBG
  • While Bitcoin is really buried into that support at the moment, Ethereum has been more range-bound of recent and as of this writing, price is not quite close to range support. Get your market update from @JStanleyFX here:https://t.co/zKcph0iMG2 https://t.co/36l0wHfbPx
  • 🇰🇷 Consumer Confidence (SEP) Actual: 103.8 Previous: 102.5 https://www.dailyfx.com/economic-calendar#2021-09-27
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