How Scalpers Can Use Chart Analysis - Part 4 | Vantage FX
- 11 years ago
Vantage FX (www.vantagefx.co.uk) look at how we can use technical analysis to assist scalping strategies.
Scalping Week
We are looking at an hourly USD/CHF chart from Sunday night onwards. This chart is overlaid with Bollinger Bands and 20-period moving averages.
It is worth taking a quick look at the daily chart to see the bigger picture and, in so doing, we can see that since January we have moved closer to the bottom of the trading range. We are now sitting on channel support in a small range after the sharp sell-off triggered by the FOMC meeting.
Now back to the hourly chart, we are examining MACD and Stochastics. Watch out for MACD divergence - when the MACD goes down while prices are sidelined, this is an indication that the price is about to drop, and sure enough it does. Meanwhile the Stochastics also warn about the instability of certain rallies.
You could look to buy at the bottom of the Bollinger Band if it's on the trend line.
Scalping Week
We are looking at an hourly USD/CHF chart from Sunday night onwards. This chart is overlaid with Bollinger Bands and 20-period moving averages.
It is worth taking a quick look at the daily chart to see the bigger picture and, in so doing, we can see that since January we have moved closer to the bottom of the trading range. We are now sitting on channel support in a small range after the sharp sell-off triggered by the FOMC meeting.
Now back to the hourly chart, we are examining MACD and Stochastics. Watch out for MACD divergence - when the MACD goes down while prices are sidelined, this is an indication that the price is about to drop, and sure enough it does. Meanwhile the Stochastics also warn about the instability of certain rallies.
You could look to buy at the bottom of the Bollinger Band if it's on the trend line.