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EUR/USD: Limit Order Scalping

Published 01/26/2016, 10:53 AM
Updated 07/09/2023, 06:31 AM

The EUR/USD has been in a tight trading range for about 8 weeks. This means that day traders are confident rallies and selloffs will not go far, and they are therefore buying low, selling high, and scalping. The 60-minute chart sold off for 4 hours overnight, but it has been sideways in a 20 pip range for 4 hours. This makes it difficult for most day traders to make money, except scalping for 10 pips with limit orders, often scaling in, betting breakouts will fail, or waiting for brief breakouts, which they will trade for 10 – 20 pips.

When the EUR/USD is in a tight trading range, it is easier to make money on the 60- and 240-minute charts, but there are far fewer trades. In general, traders are looking for reversals and 20 – 50 pips scalps.

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