Scalping Strategies And Methods
Some view it as a fountain of wishes where people toss in coins in the hope of finding luck.
Of all the analogies, the lucky fountain best describes a scalping strategy.
On the face of it, you would think that simply gathering up the coins from the bottom of the fountain is easy and risk-free.
But the bottom of a fountain is slippery and there is a risk that you could topple over and lose the coins.
This strategy represents the generation of profit from Forex market transactions, which sometimes last less than several minutes.
Whereas Internet traders will use large sums of money and will wait patiently to make their profits, when dealers use a scalping strategy they profit from many small transactions.
To successfully use a scalping strategy, it is vital to learn how to exit a deal while minimising your losses.
Here we will consider three trading approaches which use a scalping strategy to make profit. These are:
Play on Time, Trade against a Trend and Trade along a Trend.
Play on Time
This one has several approaches.
The first one to look at is the 15-minute opening range breakout. The distinctive feature of this method is that profit is taken very quickly and a transaction rarely lasts longer than one minute.
To do this you wait until a breakout forms and then you can enter the market at a couple of ticks above the maximum or a couple of ticks below the minimum. You close you position once you have made one point of profit.
The next method can be called 'shake-up at 10 o'clock'. This is based on New York time, where an attempt to reverse trend occurs at that time.
Once the first 15-minute bar closes you watch. If the market is near the day maximum within the first half an hour, you should be ready to open a short position and vice versa:.i.e. Markets are nearing the minimum of the day so you open a long position.
You would enter into the market at one tick after the minimum of the last 15-minute bar when placing a long position and one tick over the maximum for a short.
You exit once you have made a one and half point profit.
The third approach is 'shake up at 1500' also assuming New York time.
Here you should buy if the Forex market was moving down for half an hour before 3pm and sell if the Forex market was moving up.
Again, you leave once you have made one and a half points of profit. All orders should be cancelled within thirty minutes.
Trade against a Trend
A method of trading against a trend is known as a 'cents collector'.
This approach requires you to study candle charts for bullish and bearish 'swallowed' candles. This strategy allows you to perform transactions only in the first and the last hours of trade.
You exit once you have made just one point of profit.
Trade along a Trend
Trading along a trend has a number of methods. One of them is scalping with standard deviation.
This approach suggests a re-entry into the Forex market at pullback, i.e. but only when the market is at a major pullback should you re-enter.
In a rising trend, you are to buy on pullback down and sell on pullback up in a falling trend.
This method works best using a 10-minute candle chart and a moving average with period 10 and put one above another.
Once you have made a two-point you should close the position.
The 'anti' method is another Trade along a Trend approach.
For this you should take a 5-minute candle chart and use the slow stochastic and a period of 7 and moving average with period 10.
Once the stochastic goes across the moving average above at the end of any 5-minute period, you should buy at this point and vice versa.
Once you have made a two-point profit you should close.
This strategy does not work with repeated entries.
This article has only very briefly looked at some of the scalping strategies. Internet traders, who use these approaches should act quickly and resolutely.
But you should be prepared for losses and understand that a scalping strategy doesn't bring large profit instantly.
It does take time for these profits to grow but each cent of profit you make is more experience in how to trade forex and that is priceless.
And your skill as an Internet trade will only grow.
It's easy to forget that easy money doesn't exist and effort and patience is needed to make big profits!
by: ric4kq3oza
The Pros And Pros Of Buying T-shirts Online T-shirts And Social Media Tips On How To Play And Maintain Kids Trains Model Toy Do You Know These Types And Functions Of Kids Toys Diabetic Breakfast Ideas: Simple And Delicious Breakfast Ideas For Diabetics The Subconscious Mind And All Its Power Where To Take Your Filipina Girlfriend On A Date (while Enjoying The Sun, Surf, Sand And Sea) Information And Background With The European Jackpot Lotteries Information And Background Of The European Jackpot Lotteries Instant Cash Payday Loans- Fast And Convenient Option To Get Immediate Cash Understanding Bank Bin Numbers And Their Role In Online Merchant Security Cyber Security And The Bank Bin Lookup Service Dr. Rondeau And Associates Lectures On Array Of Dental And Orthodontic Topics