simple scalping strategy

I have a simple scalping strategy i'd like to share. I use it for forex trading:

use a 3 or 5 min bar chart and look for swings. when the trend reverses using stochastics (13/8) then
pull the trigger.

example: on the chart the trend has been up, when the market pulls back and the indicator crosses
down also, DO NOT take the short trade as the trend is still up. Once the market stalls on the downside
and the indicator crosses to go up go long. Stay in for 20 - 30 pips and the get out.

Thats it!
The Big Picture Matters
a Short-term trader do you ever look at longer term time frames? If not, then this article will explain
why the longer term time frames can influence the shorter intraday ones.

Most independent Short-term Traders tend to ignore the Long-Term technical condition of the Market
because they believe it is not important in their trading. Few things are further from the truth, that is,
if you want to survive the market over a long period of time, and still be trading years, even decades
from now.

In the same manner that the tides can raise or sink all ships, the larger trends, behavior and technical
design of the markets greatly affects ALL independent traders, regardless of trading style. You can
have an independent short-term trader who is consistently successful over a period of months or even
years, but eventually, by basic design, the market is going to shift behaviors, and surviving in the new
environment will be like learning to trade all over again, despite the past successes. The long-term
lifespan of an independent trader is a series of winning and losing streaks, a series of adjustments to
the market’s behavior, an unending task of learning, and re-learning the market.

Take a look at your goals as a trader. What is it that you want out of the market? Money? Well, money
is a given… what else? A lot of money? That is a given too. Let’s take the best case scenario and say
that you did make “a lot of money,” how long will it be before you consume all that money and come
running back to the market to look for more? Have you ever stopped to think that you will always be at
risk, even if you are “successful?”

How about the goal of “consistent profits?”  This is very possible, but consistency in profit-taking has a
lot to do with how “in-sync” you and your trading/technical analysis style is with the market’s current
environment, which in turn, is subject to sudden change at any moment. Trading is not just difficult in
the beginning. It’s difficult in middle and all the way to the end as well (please don’t kill the
messenger). Do you know what it takes to survive long-term? Let’s see.

A given trend or behavior in the market that has been ongoing for months or even years can change in
one day. The market has done this many times before. The longevity or lifespan of an independent
trader depends almost entirely on his ability to quickly adjust to the market’s many changes. Changes
in the market’s behavior are as certain as the changes in seasons: do you have it in your overall plan to
adjust to these changes, especially after the market has gotten you and all other participants
accustomed to certain type of environment for months, or even years? All too often, the market will
perform a major change in behavior at just about the same time as when everyone has “figured-out” or
“confirmed” a unified, high-probability method of making money … when the market turns, it’s back to
square one for everybody. And I mean everyone.
The market will move from point A to point B with as few on board as possible, did you know that this
is the market’s basic design and natural tendency? And it makes sure few are on board by changing
behavior and moving very quickly. That’s why you’re never on it.

The many times the market has changed behavior in the past is quite evident in its Long-term charts.
You would not need to be an expert in technical analysis to identify major shifts in trends and changes
in price action behavior. As a short-term trader, you will feel these changes directly in the Intraday
market, as this is merely a small fraction of a larger design. This is true whether you see the changes in
the long-term charts or not, one thing is for certain, short-term independent traders are greatly
affected by larger trends. The larger (in time-frame) the change … the bigger the effect will be on all
participants, regardless of trading style.