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
EUR/USD
Bullish
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
Oil - US Crude
Bullish
Wall Street
Bullish
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
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Australian Dollar is up fractionally this week with Aussie stalling just below the yearly range highs. Here are the levels that matter on the $AUDUSD technical chart. Get your #currencies update from @MBForex here: https://t.co/jYzBK1qH4s https://t.co/gYj4tFbsGS
  • What is the road ahead for equities this coming week? Check out my fundamental outlook below! #DowJones #SP500 #DAX30 #FTSE100 https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2020/07/11/Dow-Jones-SP-500-DAX-30-FTSE-100-Outlook-Stocks-Week-Ahead.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/HjIBDKqwvO
  • #Gold price gains seem to depend on monetary stimulus expansion and may turn lower as contraction of the Federal Reserve’s balance sheet underpins the US Dollar. Get your #metals update from @DanielGMoss here: https://t.co/8NHLc8jdhw https://t.co/0YYKXqtY9V
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/OjTZOQEytM https://t.co/DDCWX1In7k
  • The US Dollar is pressured as rising coronavirus cases fail to dent 2021 GDP bets. Could the Singapore Dollar, Indonesian Rupiah, Philippine Peso and Malaysian Ringgit rise? Find out from @ddubrovskyFX here:https://t.co/u1qhaIGGoC https://t.co/kvFgxQjLb0
  • The ASX 200 and AUD/JPY are at risk of losses as cases of Covid-19 continue to climb in Victoria, Australia’s second-most populous state. Get your #ASX market update from @DanielGMoss here: https://t.co/O0LNvhy4eY https://t.co/mS9vLeVU5Y
  • The Dow Jones could fall based on positioning signals, will the growth-linked Australian Dollar and Canadian Dollar follow? If so, what are the technical barriers ahead? Find out from @ddubrovskyFX here:https://t.co/yJrlR5C00P https://t.co/W45z2yNjr0
  • Further gains in USD/IDR could be curbed as USD/PHP establishes a floor around 2017 lows. USD/MYR may fall next as USD/SGD fast approaches a key falling trend line.Get your #ASEAN currencies market update from @ddubrovskyFX here:https://t.co/9JgZm2n8Fl https://t.co/Yg6WSFxt8T
  • The New Zealand Dollar is aiming higher, with NZD/USD eyeing fresh yearly highs while AUD/NZD may be carving out a bearish Head and Shoulders chart pattern. Get your $NZDUSD market update from @DanielGMoss here:https://t.co/osFxXvq5xF https://t.co/zcmqsFR9tg
  • RT @FxWestwater: $EURUSD & $AUDUSD in Focus Ahead of #ECB, Jobs & Retail Sales - @DailyFX https://www.dailyfx.com/forex/market_alert/2020/07/10/eurusd-audusd-eur-usd-aud-usd-in-focus-ahead-of-ecb-jobs-retail-sales.html https://t.co/uBR27tPwgF
Find Momentum for Forex Scalping

Find Momentum for Forex Scalping

2013-03-06 19:00:00
Walker England, Forex Trading Instructor
Share:

Article Summary: The AUDCHF has advanced as much as 365 pips from February lows. As the trend continues, traders will use momentum analysis to identify scalping opportunities.

The strength of the Aussie Dollar (AUD) has come into question relative to multiple currency pairs throughout the 2013 year. Due to the Aussies volatile and seemingly unpredictable nature, it is always best for a scalper to identify the trend along with market momentum to determine if they should be buying or selling the AUD in a particular Forex pair. So how do we conclude if the pair is suitable for scalping? To find out, let’s take a look at an example using the AUDCHF.

One of this week’s strongest trends is the continuing uptrend on the AUDCHF. Taking a look at the 4Hour graph below, we can see the pair advanced as much as 365 pips from its February low while creating a series of higher highs. However, even though the pair is moving in an upward direction, short term momentum should be assessed prior to initiating a day trading plan. One way to evaluate momentum for scalping is to move in and block off a 30min chart.

Learn Forex – AUDCHF 4Hour Trend

Find_Momentum_for_Forex_Scalping_body_Picture_2.png, Find Momentum for Forex Scalping

(Created using FXCM’s Marketscope 2.0 charts)

AUDCHF Building Blocks

To find out if this week’s trading momentum is heading in the same direction of our primary 4Hour trend we will now turn to a 30 min chart and apply our building blocks analysis to the graph. Essentially by dividing last week’s price action in half, we will determine if the market has been heading in a singular direction. If momentum appears to be continuing with the trend on the AUDCHF, traders will have a preference to buy with the market. If momentum is seen declining or reversing, it may be time to look for other market opportunities.

Below we have divided our previous trading week into segments labeled Block 1 and 2. Block 1 begins on Wednesday the 27th and runs through Sunday the 3rd. Block 1 shows the AUDCHF advancing and creating a new high at .9654. Block 2 confirms the strength of the pair as price breaks out and creates a series of higher highs. As price has continued its ascent over the past trading week both blocks have been colored blue. Forex traders looking to scalp the strongest trends backed by short term momentum, should confirm both blocks of a currency pair are heading in the same direction prior to entering into new positions.

Learn Forex – AUDUSD Building Blocks

Find_Momentum_for_Forex_Scalping_body_Picture_1.png, Find Momentum for Forex Scalping

(Created using FXCM’s Marketscope 2.0 charts)

To take our analysis one step further, traders should notice price has already exceeded the Block 2 high. This is a strong indication that market momentum is continuing, while this new higher high will ensure our next trading block will be painted blue as well. Scalpers looking to take advantage of this continued price advance will look to use this momentum and buy the AUDCHF.

Despite being in a strong uptrend, traders should always keep an eye on a currencies previous low. If price begins to decline and breaks lower, this would at least suspend any bullish bias on the AUDCHF.

---Written by Walker England, Trading Instructor

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

To be added to Walker’s e-mail distribution list,CLICK HEREand enter in your email information

Are you looking for a scalping strategy for the FOREX market? Sign up for our free CCI training course! CCI Training Course

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

DISCLOSURES

News & Analysis at your fingertips.