How Scalpers Can Use Chart Analysis - Part 5 | Vantage FX

Vantage FX (www.vantagefx.co.uk) look at how we can use Moving Averages and Parabolic SAR alongside Scalping techniques.

Scalping Week

We are looking at a 4-hourly EUR/CHF chart from 2 September onwards. At the beginning of the month we can see the Moving Averages cross above the 50 then above the 200-day period with the Parabolic SAR suggesting a long.

On 6 September there is a sudden slide below the 10-day moving average, hitting the Parabolic SAR, so here you would probably have gone short. Mid-month on 16 September you may have considered going short again as the 10-period Moving Average is below 50 and the Parabolic SAR suggests a short.

On 19 September we moved below the 200-period Moving Average, reaching the lowest level since 3 September. There is a strong V-shaped reversal which we would possibly stick with and stay short despite the confusing flurry in the Parabolics.

On 24 September the 50-period Moving Average dropped below the 200-period, suggesting the view that we might be right to stay short, and the sharp fall continued this week.