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
Mixed
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
Mixed
Wall Street
Bearish
Gold
Mixed
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
GBP/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
USD/JPY
Mixed
More View more
Real Time News
  • #Bitcoin weakness intensifies following Tesla CEO Elon Musk announcing a suspension of payments with the cryptocurrency. $BTCUSD now trading just below the 49,000 level. https://t.co/nFWeCTZll3
  • The Dow Jones and S&P 500 outlook appears bleak in the near term as retail traders increase their upside exposure. At the same time, these indices confirmed bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/fKCHEKUd8O https://t.co/wWHBwTkp8Q
  • Odds of a #Fed rate hike by the end of next year jumped following the US CPI report Overall bets of a 25bp hike are up about 35% since the end of last week after #NFPs We still have Fedspeak left this week, but thus far seems markets have been focusing on the data https://t.co/6JR2qzCVg9
  • 🇯🇵 Bank Lending YoY (APR) Actual: 4.8% Previous: 6.3% https://www.dailyfx.com/economic-calendar#2021-05-12
  • 🇯🇵 Foreign Bond Investment (01/MAY) Actual: ¥-73.6B Previous: ¥132.8B https://www.dailyfx.com/economic-calendar#2021-05-12
  • Heads Up:🇯🇵 Foreign Bond Investment (08/MAY) due at 23:50 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-05-12
  • Heads Up:🇯🇵 Bank Lending YoY (APR) due at 23:50 GMT (15min) Previous: 6.3% https://www.dailyfx.com/economic-calendar#2021-05-12
  • Heads Up:🇯🇵 Foreign Bond Investment (01/MAY) due at 23:50 GMT (15min) Previous: ¥132.8B https://www.dailyfx.com/economic-calendar#2021-05-12
  • RT @FxWestwater: #Bitcoin (BTC) Plunges on Tesla Bitcoin Suspension, $AUDUSD Spars USD Strength Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/05/12/Bitcoin-BTC-Plunges-on-Tesla-Bitcoin-Suspension-AUDUSD-Spars-USD-Strength.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co…
  • The Euro's technical posture against the US Dollar, Japanese Yen and Australian Dollar shows potential for near-term directional shifts. Here are the EUR/USD, EUR/AUD and EUR/JPY levels to watch. Get your $EUR market update from @FxWestwater here:https://t.co/7rW8FGPBUt https://t.co/jOxYD3Tyfe
A Simple CCI Strategy for Scalpers

A Simple CCI Strategy for Scalpers

Walker England, Forex Trading Instructor

Talking Points

  • Traders should find the trend to form a trading bias
  • CCI can be used to identify market entries
  • Traders should manage risk in the event of a trend shift

One of the hardest steps a trader must take before scalping their favorite Forex pair is creating a strategy. While strategies can range from the complex to the mundane, creating a plan for trading the market does not have to be needlessly complicated. Today, we are going to review a simple three step CCI (Commodity Channel Index) strategy that can be used for scalping trending Forex currency pairs.

So let’s get started!

Find the Trend

The first step to trading any successful trend based strategy is to find the direction of the market! The 200 period EMA (Exponential Moving Average) is an easy to read indicator for this purpose. Traders can add this indicator to any graph with the intent of finding if price is above or below the average. If price is above the EMA, traders can assume that the trend is up while looking to initiate new buy orders. Below, we can see a 5minute NZDUSD chart accompanied with the 200 period EMA.

Given the information above, traders should look to buy the NZDUSD, as long as it remains trending higher above the EMA. It should be noted in the event of a downtrend (price under the EMA), traders will look to sell as price decreases.

Suggested Reading: Time Frame Analysis for Market Scalpers

Learn Forex –NZDUSD with 200 EMA

A Simple CCI Strategy for Scalpers

(Created using FXCM’s Marketscope 2.0 charts)

CCI Entry

Once a trader has identified the trend and created a trading bias using the 200 period EMA, traders will begin looking for ways to time their market entries. Using a technical indicator is a favored choice for this task, and the CCI (Commodity Channel Index) oscillator can be added to your graph for this exact purpose. Below, we can again see the NZDUSD 5minute graph, this time with the CCI indicator added. With the NZDUSD trading in an uptrend, traders will look to buy a retracement when CCI signals momentum returning back in the direction of the trend. This occurs whenthe indicator crosses back above an oversold value of -100.

The CCI crossover from today’s trading shows exactly how traders can time their entry with the indicator. It should be noted again that only buy positions are being taken during this uptrend. This is just one of many ways you can use CCI in an active trading plan.

Learn Forex – NZDUSD & CCI

A Simple CCI Strategy for Scalpers

(Created using FXCM’s Marketscope 2.0 charts)

Manage Risk

As with any active market strategy, scalping Forex carries risk of loss. Because of this, traders should always consider their exits as well as their entries. Scalpers can use a swing low or even the 200 period MVA as places to set stop orders. In the event that the NZDUSD begins creating lower lows, traders will wish to exit any existing long positions and look for other opportunities.

Suggested Reading: Risk Management for Scalpers

---Written by Walker England, Trading Instructor

To contact Walker, email WEngland@DailyFX.com

Follow me on Twitter @WEnglandFX.

To Receive Walkers’ analysis directly via email, please SIGN UP HERE

Interested in learning more about Forex trading and strategy development? Signup for a series of free “Advanced Trading” guides, to help you get up to speed on a variety of trading topics.

Register here to continue your Forex learning now!

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

DISCLOSURES