Understanding and how to Trading Using Scalping Strategy

What is meant by scalping??

What is meant by a scalping strategy trading strategy is, trading with a low timerframe with the aim to get profits quickly.This forex trading strategy can be said to be the most popular strategy in all corners of the world, which can produce very high trading frequencies.Although the average profit of trading perposition is relatively small (around 5-15 pips). However, traders using this strategy (scalping) can be called a scalper.

Difference between scalping strategy and other forex trading strategies

The difference is that most forex traders openly open trading positions over a period of time (between a few hours to several days) to get a large profit pips, between 20 to 1000 pips. However, Scalping is different because it aims at small profits that can be harvested in just minutes. But the same goal is to get the benefits of each purchase.

Then to compensate for the low average profit per position,traders usually increase the lot that is used each time trading or increase trading frequency. therefore a Scalper can open and close trading positions between 15 to hundreds of times a day.

But there are things you need to know that scalpers require accuracy and a high level of concentration to benefit in the fast-moving forex market. Under these conditions the Scalping strategy cannot be carried out during office hours or when a trader cannot focus on the trading platform.

Also read this: The Best Indicator in Binary or Forex Trading

How to trade using a scalping strategy

To use the calping strategy there are four factors that traders must understand, including the following:

  1. Because the Scalping strategy prioritizes execution speed and precision,So make sure the computer is connected to a reliable internet connection (not easily broken or slow).
  2. Arrange trading systems that are able to function well in low timeframes (between M1-M30).
  3. Register with a forex broker that allows Scalping. Preferably, the broker is ECN system or free commission fees, with Floating Spreads starting at 0 pips.
  4. Choose currencies that have high volatility and low spreads. Usually Major Pairs, such as EUR / USD, USD / JPY, GBP / USD, and AUD / USD.
Four factors must be really understood if you want to use a scalping strategy.......

What indicators are suitable for scalping strategy?

Actually the indicators that are suitable for scalping strategy there are many combinations of technical indicators that we can use to run the Scalping strategy. For example, here we will implement a system that combines several Moving Averages.

To apply this combination of indicators, we must first open a trading platform, select a particular currency pair, then specify the M1 timeframe (1 Minute). For example EUR / USD, USD / JPY, or AUD / USD. Install three technical indicators: Exponential Moving Average (EMA) with period 12, EMA with period 26, and Simple Moving Average (SMA) with period 55. Next, follow the rules:
  • Buy if there is EMA-26 and SMA-55 across SMA-55 from the bottom up. Place the Stop Loss under the last swing low. Close this trading position after profit 5-15 pips.
  • Sell ​​if there are EMA-12 and EMA-26 crosses SMA-55 from top to bottom. Place the Stop Loss under the last swing high. Close this trading position after profit 5-15 pips.
For the results we can more or less look like the picture below:

Understanding and how to Trading Using Scalping Strategy

Also read: Simple Trading Strategy Binary.com Rise / Fall Duration 5 Ticks

we must also note that with this Moving Average setting, the trader has got three trading opportunities in less than three hours in the time between 05: 45-07: 30.

Is there a signal for forex trading or other brokers who have used this strategy automatically??

The best signal application for forex trading and other brokers is of course there are those that provide this strategy automatically, and how to use it is quite simple and easy to understand by novice traders.Below are the best signals for forex trading and all the brokers that you can use, please join this best signal...


Understanding and how to Trading Using Scalping Strategy Understanding and how to Trading Using Scalping Strategy Reviewed by TRADING TRICK on December 14, 2019 Rating: 5

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