One of the most common forex trading strategies is known as scalping. This is not only a simple trading system, but also a small risk, and it can be done in a very short period of time. The problem is that the spreads you have to pay for often eat up most of your profits, and the reward / risk ratio is usually too low.
Many traders do not like the scalping system. This may be due to the fact that they did not combine this with several more sophisticated strategies. Combined with other strategies, scalping can be more profitable and less risky in the long run. Before we discuss the more sophisticated strategies known as “alignment” and “martingale,” this will help take a closer look at scalping itself.
In scalping it is usually better to trade currency pairs with high volatility and low spread. These include pairs such as EUR / JPY, GBP / USD, EUR / USD and USD / JPY. It is also better to focus on lower term charts, such as one hour or less. The best time to trade a scalper is usually at the intersection of the European / American session and the American / Asian session. Once you think you’ve “caught” a short-term trend, you can enter a position. Just make sure no major news events are expected and you feel confident in your short-term trend.
Here are some advanced strategies to help you scalp. The first advanced scalping strategy will be discussed in this article. This is due to alignment. The second strategy will be discussed in the next article, entitled “Scalping by Martingale Insurance”. It involves something else known as the Martingale strategy.
In this article, we aim to combine scalping with aligning the two types of trend. As we all know in Forex trading, sometimes the short-term price trend is different from the long-term one. In this strategy, we make it clear that now is not the best time to scalp. This is because the trends don’t match, and if a short-term trend suddenly decides to rebuild itself with a long-term trend, you’ll start to have big problems.
Avoid trading against a long-term trend and wait until the short-term trend shows signs of agreement. You can use EMA on daily and 1-hour charts to identify these trends, or you can use your own strategy to identify trends. Whatever you do, wait until both short-term and long-term trends coincide. This provides you with a nice form of insurance when you start scalping. If you don’t see a matching of your trends, come back tomorrow and try again.
Remember, you really scalp, so don’t be greedy when things go your way. Make a profit of 10-20 points and call it a successful deal! Combine this with another advanced strategy discussed in the next article, “Scalping by Martingale Insurance.” This is just one of the many forex trading strategies that can really help you make scalping a more profitable trading tool.