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Forex Price Action Scalping

by Bob Volman (2011)

Quick summary -- an in-depth PhD-level extended summary (10-30 pages) for this book is coming soon.

Forex Price Action Scalping

Author: Bob Volman | Categories: Day Trading, Forex, Price Action

Executive Summary

"Forex Price Action Scalping" by Bob Volman is an in-depth guide to professional-level scalping of the EUR/USD currency pair using pure price action analysis. Volman presents a complete scalping methodology built around seven specific setup patterns identified on tick charts, with a single exponential moving average as the only indicator. The book is notable for its brutal honesty about the difficulty of scalping, its rejection of indicator-based methods, and its exhaustive use of chart examples to demonstrate pattern recognition. It is widely regarded as one of the most practical and detailed scalping guides available.

Core Thesis & Arguments

Volman's core thesis is that profitable scalping is achievable through disciplined price action analysis, but only for traders willing to invest significant time in education and screen time. Key arguments: (1) Scalping is feasible despite skeptics' claims, but the quality of education determines success; (2) Price action on tick charts exhibits repetitive, recognizable patterns that offer consistent edge; (3) All indicators beyond a single EMA are unnecessary and counterproductive; (4) A fixed 10-pip target and 10-pip stop provides an adequate framework when combined with high-probability pattern recognition; (5) Trade selection (knowing what not to trade) is more important than trade execution.

Chapter-by-Chapter Analysis

Section 1: The Basics of Scalping (Chapters 1-5)

Covers currency trading fundamentals, tick chart mechanics, scalping as a business, target/stop/order management, and the probability principle underlying the methodology.

Section 2: Trade Entries (Chapters 6-13)

The heart of the book, detailing seven specific setup patterns: Double Doji Break, First Break, Second Break, Block Break, Range Break, Inside Range Break, and Advanced Range Break. Each chapter provides extensive chart examples with detailed annotations.

Section 3: Trade Management (Chapter 14)

Introduces the Tipping Point Technique for managing open positions, including when to move stops to breakeven and how to handle adverse price action after entry.

Section 4: Trade Selection (Chapter 15)

Covers unfavorable market conditions, teaching traders to recognize situations where setups should be ignored due to poor market context, choppy conditions, or adverse trend alignment.

Section 5: Account Management (Chapters 16-17)

Addresses position sizing based on account size and risk tolerance, and provides cautionary advice about the psychological and financial realities of scalping.

Key Concepts & Frameworks

  • Seven Setup Patterns: Specific price action formations on tick charts that signal high-probability entry opportunities
  • The Probability Principle: Trading with the odds by combining pattern recognition with trend alignment
  • Tipping Point Technique: A systematic method for managing stops and exits on active trades
  • Unfavorable Conditions Filter: Recognizing when market structure does not support trading, preventing low-probability entries
  • Fixed Target/Stop: Using 10-pip target and stop as a standardized risk/reward framework
  • Single EMA: The 20-period exponential moving average as the sole reference for trend direction

Practical Trading Applications

  • Focus exclusively on the EUR/USD pair during the London and New York sessions for maximum opportunity
  • Use 70-tick charts as the primary timeframe for pattern recognition
  • Apply strict entry criteria based on the seven defined setup patterns
  • Filter setups against unfavorable conditions to reduce false signals
  • Maintain a fixed 10-pip target and 10-pip stop on every trade
  • Size positions based on a maximum 2% account risk per trade
  • Keep a detailed trading journal for ongoing pattern recognition refinement

Critical Assessment

Strengths: Volman's book is one of the most honest and practical scalping guides available. The sheer volume of annotated chart examples is unmatched. The methodology is specific enough to be actionable while flexible enough to adapt to changing market conditions. The author's frank discussion of scalping's difficulties and psychological demands is refreshing.

Weaknesses: The exclusive focus on EUR/USD limits applicability. Tick charts are not available on all platforms. The fixed 10-pip target/stop may not be optimal in all volatility environments. The book is dense and requires significant study time to internalize.

Key Quotes

  • "No other venture has led to more carnage of capital, more broken dreams and shattered hopes, than the act of reckless speculation."
  • "The true issue is not the feasibility of profitable scalping but simply the quality of one's education."
  • "Just one single chart. No fancy indicators. One-click in and out."

Conclusion & Recommendation

"Forex Price Action Scalping" is the definitive guide for traders seeking to scalp the forex market using price action analysis. Volman's methodology is specific, well-documented, and honest about both the potential and the pitfalls of scalping. The book demands significant study and screen time but rewards dedicated students with a complete, actionable trading system. Recommended for traders with at least basic market experience who are drawn to short-timeframe, active trading and are willing to invest hundreds of hours in pattern recognition development.