Caution: This article do not encourage investing on any market and do not tells people to trade with this idea. INFACT, this is for research, understanding purpose only.
What Is Forex Scalping?
In our language, we could say forex scalping means bring out some small profits in many times as a trader can. In my experience- several times in a day. The job is not easy, you have to get some forex scalping strategy before doing that. Or, lose the shit! Huh!
No need to wonder that scalping in this volatile market respects only real-time FX analysis based on. Not only this, an expert forex scalper keep his eye for a dataset consist many number of trades for his small profit .
I am going to show you 3 important but easy steps to take for a forex scalping.
1) Fact currency pair
Find the unstable pair in this week. Take a close look on the chart, also the news. AND for the sake of god, you have to consider the lowest spread pair + brokerage. Keep in mind that the broker should not dealing desk type of broker.
2) Moving Average
An expert trader cares technical analysis. You should too, at least keep your eye on SMA (Simple Moving Average) , EMA (Exponential Moving Average). You can chose 5, 10, 50 or 100 SMA, EMA as you keen to follow.
3) Bollinger Bands With Support and Resistance
A flat Bollinger Band line can easily indicate that the market is bullish for a tight range trading.
The forex scalping strategy here is simple: if your selected currency pair moves close to the lower then buy it. OR just sell pairs where the price is close to the upper band. I strongly suggest you to try demo account for this.
Finding support and resistance with forex news websites easy. Most of the sites publishes 3 support levels (S1, S2, S3) with 3 resistance (R1, R2, R3) levels. We believe R3 and S3 marks indicates stronger and more likely to hold the line, compared to R1, S1 levels.
So, this is it. Rest of things are in your hands. But remember- forex scalping is easy way to make money but losing risk always waits for you. 😉 So be careful and do scalping!!