Believe me that I tested this technique and also want you to know that 75% of traders in Nigeria are scalpers. I really commemorated the New Year thanking God for giving me the courage to develop more into scalping as a trading strategy.
What is Scalping? Many marketers do not really understand this simple word. Some even mispronounced it, and if you do not understand the meaning now, you can not benefit from the mega returns that the strategy is generating in the world’s largest financial market
Scalping is a focused technique that involves Doing A tiny trade to generate profit within a short period of time. This method of trading the FX market is of high probability trading with extremely small risk stops and predefined profit goals, it is also a means of taking a million deals to make a million dollars.
There are different types of traders; “Position Traders” “Traders Intraday” and “Scalpers” A position trader could get involved in trades that are meant to last several days or months with huge target pips from hundreds to thousands. An Intraday trade could normally involve deals that can last for less than a day aiming at 20 to 100 pips targets while a Scalper engages in deals that can last for a few minutes and the minimum target could be 5 pips more. Choose your calculator now and calculate 5pips on a 2.00 standard lots of 5 trades per day for 20 trading days (5pps x 5 trades x 20 dollars x 20 trading days = $ 10,000 monthly) If all the scalping techniques are respected . You’re saying it’s not possible! Just trade that demo for a month and see what I’m saying.
A scalper will usually trade larger lot size or volume, depending on your account size and risk acceptance. For the fact that this technique requires a maximum Stop Loss of 20pips, you should also maintain a good principle of equity management. If you could simply follow the rules I am going to teach you about this technique, you could rake in more profits to your bank account without stress as compared to the day or position traders.
Let me sound this warning that if your account can not accommodate the risk involved scalping with higher lots or contract amount, please do not exchange higher lots. Simple! Because scalping is more emotional and advanced in nature in the aspect of making a very quick decision and execution of trade. Do not trade without setting your stop loss when scalping. Trading without loss of stop could clear your account with this strategy. P-L-E-A-S-E, just follow the simple trading rules that I will share with you.
Scalpers often get involved in multiple deals a day. Some marketers run various businesses and make profits with ease. Do not worry, I’ll teach you the technical know-how of scalping the market. Scalps are run in the direction of the current Forex market trend. You can not shy away from the fact that the “trend is your friend”, if you do not know the market trend, do not make any order.
You can also have higher profits like this. The lesson is getting more technical by applying stop. What is Trailing Stop? Stop Loss is intended to reduce losses where the price of the symbol or the currency pair moves in an unprofitable direction. If the position becomes profitable, stop loss can be manually shifted to a break-even level. To automate this process, Trailing Stop was created. This tool is especially useful when pricing changes strongly in the same direction or when it is impossible to watch the market continuously for some reason.
The beauty of scalping is that it allows traders to trade even when other techniques would make you sit down with your PC for long without trading. Scalping is best used in conjunction with or as a complement to other trading techniques – to keep trading your normal strategy you are accustomed to and add scalping to your trading toolbox.
TYPES OF SCALE
There are three methods of scalping the Forex market that I will teach in this article: You could apply the EMA 4/12/63 to 15 minutes chart of your trading platform and leather Hairy with strategy. Alternatively, apply what I’m basically going to share for this technique.
1. Time-sensitive trades: This comes in 2 forms: First, in break-opening intervals, where a quick scalp is taken minutes before opening, in the direction of any market momentum. I revealed an important secret in the previous issue of SDE on the best trading time for the EMA 12/4/63. In the meantime, if caution is not taken, the bull that precedes the 7:45 am Nigeria timeout may hit its stop loss. But you can perfectly study the market; And scalp to make profits before the main escape. And I advise that you always use your Bollinger bands, preferably in a separate chart of 15mins.
Second, trading to capitalize on the regular turnaround time of the New York opening session market. Infact, scalping is the best strategy to apply because something should happen. Keep your eyes also in 15 to 30 minutes for the FA release. I bet you would have made your target before the news. So if the news is worth trading, trade and make more profits. Always tie this law around your neck and do not let it get away from you “make 20 or 30 pips a day and all other pips will be added to you”
2. Countertrend trades: Scalping when the market is In silence or consolidation during the trading day. It could be the Asia session too.
3. Trends continuation negotiations: These methods focus on entering the market in the direction of a trend after the trend has gone on.
One of the most liquid, active and electronically accessible markets is Forex Trading Online and I feel that the scalping method represents the best known odds for choosing consistent profits as a trader / scalper.
Oh! Getting interesting? So I hope you contribute so that I can show you more ways to scalping the market soon.
Scalping is a very good trading strategy but I would like to encourage you that this strategy is not for all marketers because Emotion and risk involved. It is an advanced trading method that needs to be mastered before committing your actual account. The scalping exchange strategy I am going to share involves simple indicators; MACD and MOVING AVARAGE (s).
The MACD is an acronym for Moving Average Convergence / Divergence. It is a trend following the momentum indicator that shows the relationship between two moving averages of prices. The MACD standard is the difference between an exponential moving average of 26 days and 12 days. A 9 day exponential moving average, signal call or trigger line is plotted at the top of the MACD to show buy / sell opportunities.
MACD can be used as an oscillator, does this sound too technical? No! Oscillators indicate that the asset will revert to its average valuation OR a Momentum indicator; Indicates that the trend is strong and will continue. Parameters: The MACD line is the difference between the EMA of 12 and 26 days. The signal line is the MACD 9 day EMA. Visually, the MACD consists of three elements, such as the MACD, is a line drawn at the bottom of the chart. The MACD line. This is simply the difference between the 12 and 26 day EMA. It’s a line drawn on the chart. The Histogram. The MACD histogram is simply a bar chart located at the bottom / top of the chart, where the MACD and signal lines are plotted. The histogram is simply a visual representation of the difference between the MACD and the signal line. The histogram “zero” point – which means the point where the bars cross above and below – is referred to as the axis.
A commercial signal is received when the MACD crosses the signal line. Traders can enter positions following the MACD Overbought / Oversold direction. No specific number indicates whether it is over-bought or oversold, but if it is relatively far from the average compared to its recent history, this may suggest that it is due to a decline. Divergence occurs when the pair makes new highs / lows, but the MACD does not, this suggests divergence, and that the trend may indeed be weakening with a reversal in the store. The MACD crossover is a direct indicator that provides precise time for the entry points. The only drawback of this indicator is that it is sometimes too slow to give a signal. Sometimes it signals a multiple candle entry after the ideal entry point. The price has already shifted enough so that the trade no longer has a favorable risk: ratio of reward. Always consider support / resistance when entering a trade regardless of crossovers.
MACD is truly a trend following indicator – early signs sacrifice in exchange for keeping it on the right side of the market. When a significant trend developed, the MACD will alert you on how to capture most of the movement. In addition, MACD is most effective in large commercial markets and there are three popular ways to use MACD: Crossovers, Overbought / Oververse Conditions and Divergences.
CROSSOVERS: The basic trading rule of the MACD is to sell when the MACD falls below its signal line. While a buy signal occurs when the MACD rises above its signal line. It is also popular to buy or sell when the MACD goes above or below zero.
OVERBOUGHT OR OVERSOLD CONDITIONS: The MACD is also useful as an overbought or oversold indicator. While the shorter moving average pulls away dramatically from the longer moving average (ie, the MACD increases), it is likely that the price of security is overextending and will soon return to more realistic levels. MACD overbought and oversold conditions exist ranging from security to security.
DIVERGENCIES: This is an indication that an end to the current trend may change soon when the MACD diverges from security. A bearish divergence occurs when the MACD is making new lows while prices fail to reach new lows. A bullish divergence occurs when the MACD is making new highs when prices fail to reach new reaches. Both divergences are more significant when they occur in relatively overbought or oversold areas.
Now for the Scalping Trading strategy, you will modify the default MACD by 2 variances. And you must follow the trading rule strictly, work on your trading plan and target by trade. Preferably, 5 to 10pips is attainable with this system, but after making your destination, please close your trading platform to avoid over trading, agreed and losses. It looks funny? You can not exempt yourself from the fact that emotions can not govern your trading strategy and plan when you over trade.
To configure the MACD for scalping, subtract 2 from standard parameters ie Fast EMA = 12 to 10, Slow EMA = 26 to 24, MACD SMA = 9 to 7, Apply to Close. Select the Color tab and change the color to your favorite, you can also increase the line style. Click the Levels tab – Add the Zero line and also change the color. You can also double-click the Description space in front of the zero value and type “Central Signal” and increase the line style as well. On the Display tab, uncheck the “All deadlines” option and select M15 only because this trading strategy works best on a 15 minute chart and you can also try it out in 5 minutes. But I recommend 15 minutes because of how emotional and noisy the 5 minute chart is.
Add EMA 4 (yellow), LMA 10 (DarkTurquoise), LMA 120 (white), LMA 40-90 (red) to (EMA) 4 is fast EMA, the Linear Weighted Moving Average (LMA) 10 is the slow AML, the AML 120 is the Trend line, while the AML 40-90 signifies how stronger or weaker the market trend is. Let me quickly state that; Do not trade when the market is trendless / sideways or consolidating because the opportunity to trade is always indecisive. I believe you know that there are three types of market trends; And you should not trade against the trend because the likelihood of trading along the trend is more than trading against it.
BASIC SYSTEM RULES:
Indicators: EMA 4 crossed LMA 10 upwards on trend is advisable and realistic to achieve its daily destination ie both moving averages crossed LMA 120 , Then set your Stop Loss 10pips below the LMA 120 or look for the low swing. Also confirm that you signal when the MACD histogram is above line 0; Signaling the ascending moment.
The graphic is a sample SALE sign. Notice how the MACD Histogram went from positive to negative and how the moving averages confirmed the sell signal. The EMA 4 crossed the LMA 10 down. Set your Stop Loss 10pps above the LMA 120.
When LMA 40-90 is above LMA 120, this implies that the market is in trend while below LMA 120 means downward trend. You should also pay attention to overbought and best-selling. Do not join traders with the mentality of “soon to reverse” in losses. Get the trend as early as possible and follow the trend to maximize your profits.
Using the 15-minute chart, 10 to 20 pips is an initial realistic profit target, especially if you are trading EUR / USD, GBP / USD, USD / JPY. Even the other major currency pairs should yield this much on a correctly measured signal.
NEGOTIATION PERIOD FOR THIS STRATEGY: Always watch out for a good trading opportunity between 7:45 am NG time to 11:45 am for morning trading While the time from 1.00 pm NG to 3.45 pm is advisable For the afternoon session.
TARGET: The purpose of scalping is to make small profits when exposing a trading account to a very limited risk, which is due to a quick opening / close trading method. I will advise you to go for 10 pips plus spread by trading and trade demo this strategy for a month before going live with it.
HIDDEN SECRETS: An additional advantage for traders is technically when there is important news that affects the market. You will always see a clear trend for the day. When negotiating using technical indicators, make sure you know when the news will be released so that you can position yourself. That is, close your trade 10 to 15 minutes before the news (FA). Then, 15 minutes after the news (FA), you could trade.
You are already at the top