EURUSD Scalp Trade 3o/10/14
30/10/14 – EURUSD Scalp – I have been waiting most of the day for this setup on the EURUSD 5 minute chart. Following yesterday’s drop after the FOMC announced the End of Quantitive Easing, today’s overall trend was Bullish and I was waiting for a hgh probability scalping setup. At 15:30 the Stochastic crossed over in the Over Sold zone against a Bullish False Bar, for the first time today, forming a Wave 4 low on this 5 minute chart for EURUSD, indicating the Wave 4 pull back from the main Bullish Trend was coming to an end. This was confirmed after the next candle, (green candle) formed a Bullish Harami Double Stick pattern. These three indicators gave me a high probability of success on this potential EURUSD Scalp and so I quickly setup a trade order. The Stop Buy order was set @ 1.2612, which was above the high of the Wave 4 extreme Red Candle forming the first part of the Bullish Harami. The Stop Loss was placed @ 1.2606, which was just below the low of the same Red candle. I placed the Take Profit Limit Order @ 1.2624 as this was well inside the day’s high and allowed for a Risk to Reward profile of 1:2 for this EURUSD Scalp. At 15:40, on the next candle, the trade triggered and then hung around the entry level for the next few candles. At 16:00, following two strong bullish candles and the MACD crossing the zero line, the Take Profit Limit Order was taken out, giving a 2% profit on my trading account balance. The combination of Stochastic crossover in the over bought/sold zones against a False Bar, a candle stick breakout pattern and a third indicator (Elliott wave or chart pattern) is what I will be looking for each day for potential EURUSD Scalp trades on the 5 minute chart. Chart as below for this EURUSD Scalp on the 30th October 2014.