What is scalping? Scalping Forex Strategy is described as a basic dealing plan that relies on the close targets, very stop loss and several opened and closed positions throughout a short period of time. All forex brokers allow scalping. The straightforward scalping trading technique is revealed here.
A few of the common functions include:
• Enjoyable earnings for instinctive dealers
• No need of paying attention to the fundamental, technical and other types of analysis
• Spreads a big part of gain
• Risk or reward ratio is usually quite low
• Requires time for supervising and trading
How to trade?
See instructions here about Micheal Boutros forex scalping strategy:
Steps for scalping system:
1) Draw trend line on 30min. forex chart.
2) Draw Fibonacci levels
3) Find yesterday high and low price and mark as important pivot level.Mark other important price levels.
4) Calculate daily ATP for currency pair (you can see in Metatrader using Average True Range indicator in daily chart).For example AUDUSD pair has 80 pips ATP today.Your target should be ATP/4=20 pips for scalping trading.
• Currency pairs with numerous unpredictable of intraday while low spreads are recommended such as AUD, NZD, GBP, JPY, EUR, JPY and USD.
• The period of time of M30 is ideal or lower.
• Best time for trading is during European and U.S dealing session
• Create a plan to get access to the positions by tracking the activity of the market for 30 to 60 minutes.
• If you believe that you are able to catch the current temporary trend, enter the position.
• Place the stop-loss to almost 15-30 pips.Try to have stop loss/profit ratio bigger then 1:1 as 1:2 or 1:3.
• The standard rule for the target profile is 1 and 1 / 2 or 1 spreads. Creating the take-gain to such a low level is practically impossible, therefore you’ll need to watch the specific point to see the target gain and close it in a manual manner.
Trading example for October 29.2012:
SELL AUDUSD at 1,039; stop loss 1,0425, target 1,0309.
Stop loss is montly high.
Target is Fib. level.