Magic Scalping System2

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Magic scalping

systemwww.easypipsformula.com all right reserved www.easypipsformula.com all right reserved Theforeign exchange markets are situated all around the world. Currency trading is aglobal activity. Every country in the world uses money and needs to change thatmoney into other currencies in order to trade or interact with other nations.

Currency exchange happens at every level of society. As an individual, you mayhave changed money when traveling on business or on vacaation. Or maybe youhave sold something on eBay to somebody in another country. Their paymentcomes in to your account in their own currency, and the bank or other paymentprocessor such as PayPal changes it for you. That is currency exchange at the rootlevel.Foreign exchange or forex trading has a different purpose, however. When you aretrading on the foreign exchange markets you are not buying another currencybecause you need it. You are buying it in the hope that it will rise in value, so you canchange it back and end up with more money than you started out with.Of course, it is risky. The price movement could go against you and then you wouldend up with less money instead of more. So you will want to gather plenty of

information about currency trading before you start.Forex trading began in the 1970s when the major currencies were deregulated sothat their values were no longer fixed. The banks and large investors quickly saw thepotential for making money from the changing prices.The main forex marketplaces are the big financial centers of the world. London seesthe highest activity with New York second and Tokyo third. Other major players areSydney, Zurich and Frankfurt. www.easypipsformula.com all right reserved

Originally you had to be in one of those places to trade money, or at least have atelephone connection with a broker who was there. It was very difficult for somebodywho was not on the spot to act fast enough to react to the sudden fluctuations inprice that can happen in the forex markets.But modern advances in technology have changed all of that. Since the rise of theinternet it has been possible to trade on your own account from anywhere. Thismeans that it has become easier and easier for the little guy to get a piece of theaction.While some people never think about foreign currency from one overseas trip to thenext, others are studying charts and financial information or even using automatedsoftware in the form of forex robots to make money from the rising and falling priceswith the aim of becoming financially free by trading on the foreign exchange markets.

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Being a forex or foreign exchange trader no longer means you have to work for abank in one of the world's financial centers. These days you can trade on your ownbehalf, from anywhere.Since the rise of the internet many people are doing this from their own homes,making money in their spare time or even making a full time income. But what isforex trading and how does it work?

A foreign exchange trader deals in currencies. He or she will sell one currency thatseems to be falling in value, to buy another that seems to be rising. There are alwaystwo currencies involved in a trade (a currency pair) because when you want to buydollars you have to have another currency to exchange for them.In the beginning it is best to be involved with just one currency pair. Most people startout trading in the EUR/USD market, that is the euro against the USwww.easypipsformula.com all right reserved

dollar. This is the biggest forex market. There is plenty of information available forthis market and it tends to have lower costs and be relatively stable.Nevertheless forex is a very volatile market. This means that the prices can rise andfall steeply and quickly. The risk is high. It is easy to lose money. In fact, somelosses are inevitable, so you should manage your account so that you never risk toomuch on one trade. You can use stop losses so that your broker will automaticallysell if the price goes a certain way against you. The aim is not to have no losses, butto make sure that your profits are higher than your losses so that you end up with anet gain.You will need access to a computer with a high speed internet connection any timethat you want to trade. Unless you use a robot to control your currency trading, youwill also need time where you can concentrate on learning a profitable system andthen on trading itself. You pretty much need to be able to lock yourself away in aroom to do this, at least for a couple hours a day. It is no good trying to trade fromyour desk at your day job with your boss interrupting you, or using a computer in thefamily den with kids climbing on your knees wanting to play games. You must be

fully concentrated on the movements in the market or you could miss the rightmoment to either open or close a trade.If you are a cautious person who likes a solid investment with predictable lowreturns, you should not become a currency trader. Forex traders are people whoenjoy risk and love the challenge of trying to turn a profit in a fast moving market.It helps if you are strongly focused on your goals and not easily swayed by emotion.It is important not to let fears of losses or dreams of huge wealth divert you fromyour strategy. You also need to stay aware of financial news, not only in your owncountry but in all of the major world powers, because this will affect the forexmarkets. With these characteristics and a good trading system in place, a foreignexchange trader can reap substantial gains from his or her investment.www.easypipsformula.com all right reserved

Magic Scalping trading system is based on a wave reversal trading strategy. Thatmeans, instead of following the trend, we are going to follow the waves within thetrend and trade when reversals happen.Before we start using the system we should install it first. To install the indicators,copy them to : windows/program files/metatrader4/experts/indicators.To install the template, copy it to : windows/program files/metatrader4/templates.Then restart Metatrader.If the system is installed correctly, here is how your chart should look like:

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With this system, were going to use 4 indicators...

First indicator is super signals channel. This indicator identifies highs/lows ofcurrent waves.Red arrow = sell signalBlue arrow = buy signalSecond indicator is arrows and curves indicator, this indicator is used to confirmthe first indicators signal. Small Red arrow = sell signal, Small Blue arrow = buysignal. www.easypipsformula.com all right reserved

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Third indicator is non lag zigzag indicator. This indicator similar to super signals identifies the highs/lows of current wave. www.easypipsformula.com all rightreserved

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Last indicator used by the system, is the AO indicator.Red bar below 0 line = sell signalBlue bar above 0 line = buy signal www.easypipsformula.com all right reserved

BUY SIGNAL

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1 Blue Arrow2 Small Blue Arrow3 Buy signal from zigzag4 AO blue bar above 0 lineExample www.easypipsformula.com all right reserved

SELL SIGNAL

1 Red Arrow2 Small Red Arrow3 Sell signal from zigzag4 AO red bar below 0 lineExample www.easypipsformula.com all right reserved

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For additional optional confirmation signal, we can use price pattern called thePin Bar.The pin bar means that the price is going to move in the opposite direction towhere the nose is pointing. In Figure 1 the nose is pointing up so the tradershould expect prices to move down.

A pin bar must:1 - have open/close within the first eye, protrude from surrounding prices (stick outfrom surrounding prices); it2 - Cannot be an inside bar.

A good pin bar has:1 - A long nose (and a long nose relative to the open/close/low),

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2 - A nose protruding a long way from the prices around it (it sticks out),3 - The open / close both near one end of the bar. www.easypipsformula.com all rightreservedPlease note that this system works with all time frames and currency pairs. But itshighly recommended to be used with major pairs and 15 Minutes chart and higherframes. www.easypipsformula.com all right reserved

STOPLOSS and TARGETSFor stoploss, we will be using the last high/low from the last arrows signals.For targets you can use 2 strategies.1st strategy, you can use a trailing stop without specific target. For example, afteropening a trade you can set a trailing stop of 10 pips. And let the trade be closedautomatically.2nd strategy, is to use a specific target. In this case, and like all scalping systems thetarget should be from 3 to 10 pips max.Please note that this system is based on technical analysis. So choose the tradingtime carefully and dont use it for trading news. In fact, its better to avoid tradingduring important news releases. www.easypipsformula.com all right reservedThe forex market hours stretch from Monday morning in Sydney, Australia to Fridayafternoon in New York. During that time the market is open somewhere around theglobe at all hours of the day or night.However it is not a 24/7 market because it does shut down on weekends. 24/5 wouldbe more accurate.If you need to know the exact times that the markets open and close, you have totake time zones into consideration. It is very simple when expressed in UTC. This isUniversal Coordinated Time, formerly known as Greenwich Mean Time. This is thestandard (winter) time in Greenwich, London which is the point of zero longitude onthe globe.So, the normal forex market hours are 22.00 Sunday UTC to 22.00 Friday UTC. Thisis 10 pm in the UK in winter time.

New York is 5 hours behind the UK so the global forex market opens and closes at 5pm Sunday/Friday in New York, 2 pm on the US west coast, 11 pm in Germany, 8am Monday/Saturday in Sydney.Things get a little complicated when you start to try to take summer time daylightsaving into account. This makes one hour difference in countries that observe it. Butdaylight saving operates in a different way in the southern hemisphere countriessuch as Australia which have summer time from September to March instead ofMarch to September.The hours of the different major national markets are as follows:www.easypipsformula.com all right reservedSydney: 10 pm to 7 am UTCTokyo: 12 midnight to 9 am UTC

London: 8 am to 5 pm UTCNew York: 1 pm to 10 pm UTCOr we can express that in EST (Eastern US time):Sydney: 5 pm to 2 am ESTTokyo: 7 pm to 4 am ESTLondon: 3 am to 12 noon ESTNew York: 8 am to 5 pm ESTYou can see that these correspond to 24 hour cover.

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However, this does not necessarily mean that trading will be good at all of thesetimes. Just after a major market opens, the prices can be very volatile andunpredictable. Many traders will stay out of the forex market for up to an hour fourtimes a day when the financial markets are waking up in these major cities.The US dollar is the most traded currency by a long way, involved in 2.5 times asmany trades as its nearest rival the euro. This means that events in the USA have agreater impact on the financial markets than events in other countries. The New Yorkmarket tends to slow down around 3 pm local time (8 pm UTC) and if you areinvolved in a US dollar pair, this can be a good time to stop trading for the day.So theoretically you can trade 24 hours a day from Sunday night to Friday night.

Automated software in the form of a forex robot can even make this physicallypossible. However, a cautious trader will choose his times and will not be activeduring all of the forex market hours. www.easypipsformula.com all right reserved

One of the best things about Forex trading is the fact that one can trade usingleverage, thus borrowing as much as 1,000 times your capital in order to make atrade. However, borrowing money for trading in foreign exchange is the same asborrowing it for other purposesinterest must be paid on the loan.However, as currency trading involves both buying and selling, the interest due onyour loan can be offset by the interest earned on the currency you buy. Before goingon to particular examples, let us take a look at interest rates in general, to see howthe foreign exchange market is affected by it.In central banks, interest rates are set in accordance with a countrys monetarypolicyhigh interest rates make the currency more expensive to buy and lowerinterest rates make it less so.Imagining the government of a country with high inflation will help you understandhow interest rates are used.The government, because of rapidly rising prices, might decide to raise interestrates. This would increase the cost of the countrys currency, and make demand andconsumption fall, as borrowing would be more expensive.

This in turn would cause prices to fall and inflation rates would come down. Similarly,a country undergoing recession might lower interest rates to boost the countryseconomy, as lower price of currency would cause demand, and, therefore, supply, toincrease.Interest rates set by central banks also determine at what rate commercial bankscan borrow from governments and lend to their customers, including forex traders.Which tells us how interest rates affect this trade. www.easypipsformula.com all right

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A trader who, for example buys GBP/USD, needs to borrow the Dollars to buy thePounds and will, thus, pay interest on the USD and earn it on the GBP. If the interestrate the Bank of England sets for the UK Pound is higher than the one set by theFederal Reserve for the US Dollar, the trader will earn more on the UK Pounds he

bought than he pays on the US Dollars he borrowed, thus making a profit.However, unless there is a significant difference between the two interest rates, thenet profit or loss will be marginal. Besides, while interest rates are set on an annualbasis, trading positions are usually opened for short periods. This serves tosignificantly lower any gain or loss on interest rates. www.easypipsformula.com allright reservedUnderstanding expense trends of Forex is not easy at all. Businessmen often get

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wrong ideas and make agendas based on them and suffer losses. The following canhelp you understand the trends:

You predict the Forex expense trendsBusinessmen observe a certain level and jumps on to it thinking that its stable.However, this is simply based on assumption and that never works in Forexbusiness. There is no accurate prediction.If wining is the goal, you have to base the business on the sure shot expense trends.Related to this, there are certain factors given below.The Market obeys Scientific LawsThere is a notion, which believes that market trends are based on logic. Somebelievers are Gann, Elliot and the followers of Fibonacci.However, if everybody knew everything, prices would never have been a surpriseand markets would be non-existent. The layman would accept these ideas and theirfantastic suggestions. However facts say otherwise.Business Can be made of NewsIt is not advisable as news is actually insignificant. The way news is supposed iswhat decides the movements. Lets see how trends occur. www.easypipsformula.comall right reservedActual Expense TrendsBasics + Individual Insight into them = Forex Market TrendsPeople are seldom rational. They often function emotionally, which is why logicalreasoning does not always hold true. The real human psychology is consistent butthese matters have no logic:1. People make costs move to extreme and these passing points can be usedprofitably.2. Carry on with business. Dont get into guessing.Win the CompetitionForex is a sport and competition is based on chances. You may not be able todetermine chances but you will never lose.

That applies not for every instance but try out on big probability situations and youwill surely take the cake with very few losses. Get huge proceeds in due course oftime.Voracity and panic fluctuate costs, creating points that are visible on Forexschedules and can be used gainfully.Its a game so when prices fluctuate on your side, get to business. Control yourfinances well and be a winner. www.easypipsformula.com all right reservedBe Imperfect but Never a LoserForex markets teem with those who attempt guessing and try to get a non-existentundisclosed trend cipher. Even though Forex expense trends seem disordered,basing your business on cost fluctuations will make you a winner.It may not be an ideal business for many, however if done right, you can make a lot

of money through forex trading. www.easypipsformula.com all right reservedIt is difficult for Forex traders to realize that the currency market is extremelyunpredictable. As new traders spend a long time trying to learn the mechanics of theforeign exchange trade and focus their time and energy on trying to find a method forpredicting movements, they naturally expect there to be rules governing themovement of the market. This not being the case, many traders find themselves at adisadvantage.

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All information on this website or any e-book purchased from this website is for

educational purposes only and is not intended to provide financial advice. Any

statements about profits or income, expressed or implied, does not represent a

guarantee. Your actual trading may result in losses as no trading system is guaranteed.

You accept full responsibilities for your actions, trades, profit or loss, and agree to hold

the authors/creators and any authorized distributors of this information harmless in anyand all ways. The use of this system constitutes acceptance of our user agreement.

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Magic Scalping System2

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