Scalping strategy on "Forex"


2018-04-01 14:56:19




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Many people wonder what is scalping? If to explain in simple language, this is the exact entry into the market.

What is scalping in "Forex"?

"Forex", there is such a thing as Pipsing, and many novice traders are confusing these two concepts. Pipsing is a short - term view of the trading on the Forex market with minimal profit. That is, the profit on the transaction may be only a few items and the transaction time takes only a few seconds. Scalping may also have a small profit, but at the time the transaction method scalping can last from a few seconds (the same as in scalping) up to one hour, sometimes even more. The duration of the transaction during the scalping depends on the market situation. In any case, scalping is the short term kind of trading.

trading strategy for scalping

The Main advantages of trading scalping method is:

  1. The short duration of the transaction.
  2. Quick profit from the transaction.
  3. Trading method scalping takes very little time. So for traders there is a possibility to trade in any free time. Many traders manage to trade even during a work break.
  4. Accessibility for trade. Scalping does not require any special analytical skills and knowledge. To trade this method, when the short trade is not required to conduct fundamental analysis. Usually traders are graphical plots candlestick analysis and use technical analysis. Traders to predict future market behavior can use Analytics within the day.

Main indicators for trading strategies when working with a scalping method

All trading scalping strategies include different indicators. The main ones are such as the timeframe and expiration time binary options and various technical indicators (if used), graphical plots of the figure. Graphical representation is used to indicate important technical levels, image channels, drawing on graph extrema. Graphic shapes is to build and marking on the chart triangle, double top, triple top, double bottom and other shapes.


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strategy binary scalping

And there are scalping strategies that use trading without indicators. It is such a trade which does not use any technical indicators. Technical analysis is based on changes in market prices or candles, in this case, you use candlestick analysis. During this analysis, a trader considers and sistematizirovat different candlestick patterns or configurations.

A scalping Strategy features

  1. Short time periods, time frames. Usually use such a strategy to work with the method of scalping, which can be used on M1, M5, M15, M30, H1. This is the most common time frames for scalping.
  2. Small take profit, averaging from 3 to 15 points.
  3. Small stop loss, not more than 10-20 points. Quite often the stop loss do not use.
  4. Responsiveness of the trader. While working on any scalping strategy trader is in constant psychological stress. He should be able to respond quickly to any changes that occur in the market.
  5. A Large number of transactions in one day. The average trader spends from 30 to 100 trades per trading day, automated trading, this number can reach thousands of transactions.

scalping strategies

Next will be submitted to the description of the various TS (trading strategies).

Trading strategy for scalping: Puria method

In this section will be considered scalping in Forex. Strategy Puria refers to the most intuitive and simple vehicle. There are several varieties of this strategy. Their main distinction - the selection of moving averages. All trading strategy is based on moving averages and the indicator MACD. You need to install on the work schedule following moving average:

  1. With the period AO 85. The method of linear weighted shift must be 0 adjusted to Low.
  2. With the period AO 75. The method of linear weighted shift must be 0 adjusted to Low.
  3. With a period of 5 AO. The shift should be 0. Method Simple, apply to Close.

Now we need to set the indicator of the MACD with the following parameters 5/26/1, apply to Close.

Setting so the indicators, it is possible to start trading and use scalping on Forex. Strategy Puria working on the H30 timeframe. You can use almost any currency pair or any underlying asset, at the very least, this strategy works on all major currencies. Take profit should be set at 15 points. Stop loss is optional.

Rules of the trading method Puria

  1. At the intersection of moving averages need to open the order. It opens in the direction point moving averages. If AO is pointing up, you need to open a buy trade. If they, on the contrary, downward, in this case, you need to sell.
  2. Indicator MACD must cross zero. To log in to the market need once fully formed the first bar, it is necessary to go to the second strip.
  3. Must wait for confirmation indicatorseach other. In this case, trading strategy Forex scalping Puria, after crossing the moving average is a confirmation indicator MACD.
  4. Closing a bargain: at the intersection of the moving averages in the opposite direction or close trades at stop loss.

Trading strategy for scalping "Three moving averages"

This is the most simple scalping strategy. The basis of this trading strategy rests simple moving averages.

  1. Moving average with period of 3.
  2. Moving average with period 5.
  3. Moving average with period 8.

The Idea of a trading strategy is the following: if the intersection of moving averages need to open your deal. The order is opened in the direction where the show moving. For example, AO3, АО5, АО8 directed upwards, in the direction of the rising trend, therefore, you need to buy, then you have to open an order for "buy" (buy). Similarly, when AO3, АО5, АО8 directed downwards, in this case you need to sell, you have to open the warrant for "sat" (sale). This is the point to enter the market.

scalping on Forex strategy

Exit from the market occurs when all the AO is directed in the opposite direction. That is, a reversal of the trend. For example, there was upward movement, there was a reversal of the market, and began the downward movement. All moving averages have changed their direction and crossed. In this case you need to close your deal. As can be seen from the description of this trading strategy everything is very simple. Thanks to simple trading strategies has become very popular scalping on Forex. The strategy of "Victory", which will be presented next, is also one of the most simple and popular among the vehicle, it is Forex channel strategy.

TC "Victory": the terms

Many traders interested in scalping in "Forex". The strategy of "Victory" is a indicator trading strategy. The basis of this trading strategy rests several technical indicators. Most of the indicators will need to download from third-party resources, as they are not core to the trading platform MetaTrader 4.

trading strategy Forex scalping

A List of indicators that are used in this trading strategy: TMA is the main indicator, as well as SSRC, Currency Power Meter. We may add additional indicators:

  • HP_DIFF for closing positions.
  • Master Money Bot is used to calculate the lot.
  • VE_AIMS used in the modification of the warrants.
  • Scalping-the strategy of "Win" is used on timeframes M1 and M5.

It is Impossible to trade and use the vehicle during an exit on the market important news. Trading stops for 25 minutes before the news, and resumed 25 minutes after they pass.

The Rules of trade in the customs Union «Victory»

If the main indicator is up-directed, so you will need to buy. Conditions for purchases: TMA is pointing up, the market price has touched the lower line of the indicator and started turning; SSRC indicates the up direction, the width of the channel more than ten points; Currency Power Meter shows the strength of the base currency is greater than the force of the quote currency. Profit is set at 5 pips, stop loss is set at 15 points. On M5 timeframe the market price is in top or in the middle of the channel. Similarly, only in the mirror, are selling on the foreign exchange market. Exit from the market - by a take-profit.

What is the scalping binary options?

Binary options scalping are Turbo options short-term, lasting sixty seconds or one minute. In addition to the Turbo, to a variety of scalping for BO are options with a duration from one minute to fifteen. Consider two most popular trading strategies for Turbo options.

Strategy "binary scalping": the martingale method

The Basis of this trading strategy - increase the initial bet if the option closed with loss. To operate this method, a trader will need a big Deposit. Immediately to warn that such a trading scheme is high risk and refers to aggressive methods. Basically all trading strategy is for scalping use the aggressive technique.

best strategy for scalping

The Advantage of this scheme is that it is possible in the short term to get more profit. The negative side are risks. So every trader have to choose which method it will work. Or it will be a classic scheme, when the risks on trade transactions is minimal, but the profit also will be much less. Or will it be the aggressive one when the risks of transactions will be quite high, but the profit is too big.

Trading strategy for binary options the method of "Pyramiding"

Unlike the martingale, the basis of this trading strategy - increase in each bet if the option closed with a win. In this case, the risks in the trade are minimized since the entire risk is accounted for only on the profits. The most that you can lose is the original stake. Profit is like a snowball, gradually accumulates, and the trader risks only the obtained yield. So when you work in this trading strategy a large Deposit is not required. However, such a vehicle also has its own drawback, which is in the processrecovery. It should also be remembered that these two systems are mainly used in different casino games. And, as many know, there is an entirely different percentage of winning and losing.

simple scalping

For Example, a bet of one dollar in the casino the player receives a winning 100% and binary options the payout ranges from 70 to 90%. The percentages need to consider when to increase bets during a losing (winning, when the method of "Pyramiding") in the options.

In conclusion, it is worth mentioning that work binary options, as well as in the market "Forex", is associated with high risks. Every trader there is a high probability how to win a certain position and lose partially or fully their investments. Therefore, before embarking on this kind of earnings, be sure to read the rules of trading on the Forex market, as well as undergo full training and to practice at the practice account provided by brokers. Absolutely all practice account (demo account) is provided by brokers for free. Any trader has all the possibilities to try your hand without risking their own money on such a practice account. And when a trader will pass a preparatory stage and learn how to predict the market, then you can move on real trading account. Best strategy for scalping is a well-established and tested by the trader vehicle.

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Alin Trodden - author of the article, editor
"Hi, I'm Alin Trodden. I write texts, read books, and look for impressions. And I'm not bad at telling you about it. I am always happy to participate in interesting projects."

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