Scalping is a trading on the short time intervals with the purpose to get an income in 10-15 points during few minutes. This style of trading counts as the most favorable for newbie who wants to get richer in one moment. That’s true from one side, but it is also true that not every newbie have ability to success in this style of trading. The scalper’s most favorite time intervals are 1-15minute price graphs.
Now, I am going to provide you with some advices that will help to make the professional scalper from you.
1. First of all, for the successful market scalping, you have to choose the moment when the market has already entered some channel and is awaiting for something. Usually it is waiting for news. That means we have to pick the time when it is not awaiting for any important economic indicators of that country of that particular currency we operating with.
2. After you’ve chosen the time, try to define a channel and build levels of support and resistance. In order to do this, you might need the graphs of bigger time intervals. I would not suggest you entering over half an hour graphs during scalping.
3. Indicators. I have tried a lot. Now I am using Stochastic + FXPredictor mt4 indicator.
4. Forget about orders because during scalping you will have no time for its installing. Entering and exiting a market occurs only in the hand regime or, what is more convenient, by the script.
5. Determine your own level of loss. Do not high it up too much because scalping involves often entering a market and in your bad times you are at risk to loose your whole deposit.
6. Study the theory of round numbers – for example, if the market reaches to the price of 0.9500, it will probably stay on this level for a bit and the price for some time will be situated in the channel around that number. This is happening because of traders love round numbers and place their special orders on them. Now because there are orders for both buying and selling, the market temporarily falls in stupor. During this time it determines which way it wants to go. This theory itself creates n independent trading system.
So this is pretty much it. Determine the moment when market is in the channel, determine levels of support and resistance, and during the price reaches these levels, use the signals of stochastic and FXPredictor mt4 indicators for entering and exiting. I would recommend testing any strategy on the history.