EURJPY after a bull run on the on friday

Similar to the opening session of last week, EURJPY experienced a big correction. EURJPY than found support at 2:10 (23:10 GMT). From the support level (reaction low) to the previous high, a fibo is drawn. At 78.6% retracement there is strong resistance. See the chart below.

From the resistance point, I enter the market at 3:26 with price at 138.09 after the first market reaction with signal from BB Macd and SBS. Stop loss is 138.19. Managed to liquidate the first half of my position with a profit of 20 pips and the balance at 30 pips profit.

EURJPY was trading at narrow range of 40 pips and bouncing around its pivot point during he Asian session.

My New Scalp System

I have not been trading regularly since early this year because I have other pressing matters.

All this while I have trying to put forward a trading system that is simple to use with few indicators being utilised. The simplify method will used the usual indicators I previously used. My target is to earn 50 pips during my trading session and my trading session will be less than 6 hours per day.

After reviewing the systems and indicators that I have used, I decided to use two basic indicators; BB Macd and Stealth buy & sell (SBS).

I used two time frame charts; 1 MTF and 5 MTF (sometimes 15 MTF)

The currency pair I prefers is EURJPY

Trading session: 00:00 GMT to 16:00 GMT ( Asian and European/UK session). Restricted my total trading session for 6 hours per day.

Profit objective: 50 pips per day

Entry procedure:

1. Check that there is no pending economic news.

2. If there is a news event and it occurs during my trading time, I avoids trading 30 minutes before and 30 minutes after the news event.

3. I refer the 5 MTF chart looking for Support and Resistance (S/R) level using fibo analysis, pivot points, round numbers, Bollinger Bands, 60 and 200 EMA, laguirre and Double CCI.

4. After the S/R level been determined, I wait for price reaction for trade entry.

5. Than the 1 MTF chart is refers using BBMacd and SBS for the entry.

6. Stop loss is at previous high/low with a minimum of 10 pips.

7. My profit target is set in two stages

A) First stage: take 20 pips profit and liquidate half (1/2) of my position.

B) Set the balance of my position with stop loss at entry price (breakeven) . After price reaction set stop loss with running stop of 10 pips.

Which way EURJPY?

During the Asian session the US dollar showed weakening strength against the Euro and Yen and consequently the EURJPY cross was caught in two minds whether to track higher on the back of a bid EUR or lower with a sinking USDJPY.

Normally, trading in EURJPY cross my time frame will be 1. the opening of Tokyo market at 23:00 GMT to two hours later and 2. 39 minutes before the European market open at 5:30 GMT to about closing of London Market at 20:00 GMT.

For today, my first trade was at about 8:35 on the 5MTF chart (or 5:35 GMT). The low at about 130.13 of EURJPY was supported by a confluence of fibo numbers. There was a bulish harami cross pattern. I entered at 137.20 when prices cross the high of the gravestone doji with CCI 34 cross the 34 ema and confirming a divergence.

At the bottom of the chart is the BB Squeeze indicator. The indicator utilizes the bollinger band, keltner channels, and momentum.

The indicators used was developed by John Carter at Tradethemarkets.com.

The dots at the bottom indicate whether or not the bollinger bands are in the keltner channels. If the bollinger band is inside the keltner, the the dot will be red. This is a quiet period. If the bollinger band is outside the keltner,l then the dot will be blue. This is a period of volatility. The bars are above or below the dots display the momentum.