Reciprocal Scalping

FX:EURUSD   Euro Fx/U.S. Dollar
This is how I scalp EUR/USD             . It is meant to be used when Australia is in nocturnal state.

You need to merge EUR/AUD             and AUD/USD             with EUR/USD             and watch for a sharp spike (up or down) in EUR/USD             .

If the same spike occurs on EUR/AUD             without occurring on AUD/USD             (or vice versa) then in most cases it suggests that either EUR or USD is spiking alone and the chance of correcting back-fast is far more probable than normally. This occurs just few times a day, but with patience it can be very profitable for scalpers. You can also use Dollar Index             for comparison, but I found AUD comparison to be far better.

Head over to the next chart linked bellow for more details and let me know if you have any questions.
How do you decide when exactly to enter?
Meneltar riskmode
Usually at the moment when the price spike hits the channel resistance/support or hagopian line on EUR/USD chart.
Sometimes I really on the spike alone, I enter as soon as it seems excessive compared to the overall price movement. Rarely do I enter at the highest/lowest point. It's impossible to predict exactly at which point will the price bounce back, but that's not necessary to make a profit. If the price continues without a bounce, there's still a chance it will at least bounce back to your entry point where you can hedge and minimize the loss. Also, if the price bounces, but then returns to the level of your entry, you should hedge as well because the bounce should go straight back. If it oscillates, then it might just be a short correction before the full breakout.

You also have to watch for news releases, if EUR or USD had a news release around the time of the spike then the whole strategy is irrelevant.

This method can also be used to spot fakeouts when trading breakouts. Breakouts don't happen unless EUR and USD act together.
riskmode Meneltar
do you use a stop loss with this strategy?
Meneltar riskmode
Could be used, by I personally don't because it's hard to tell how far will the price go before it bounces back.
I prefer hedging if things go wrong.