Simple Forex Scalping System – Forex Scalping Strategy for Beginners
August 11, 2011 by Forex Superb
Filed under Indicators, Technical Analysis, Trading Systems
Forex scalping as a trading technique has gained so much popularity recently within the forex community. This is evident because scalping aids investors get fast gains off the market within short durations and this is one of the big reasons why investors are lured into it.
It is important to note that scalping carries along considerable risk thus resulting to quick loss when adequate analysis is not well drawn, and in other scenario scalping the currency market can also yield quick profits. Scalper is the name given to anyone who’s involved in scalping, which invariably allows the investors enter several trades within an hour and this can also yield sizeable profits/losses as the case may be.
Best Scalping Tips
o Pin out vital resistance and support levels and they are as follows;
Fibonacci 0.618, 0.5, 0.328
Pivot Point S3, S2, S1, PP, R1, R2, R3
Our previous high invariably becomes our current resistance while our previous low becomes the current support.
o To be able to get into the market more accurately, investors should use indicators like RSI or Stochastic in a bid to timely enter the market.
For investors who are looking to enter the markets for a fast SELL, it is advised that they exercise some patient on the oscillating indicator as it gets overbought and begins its downward curve. For others out there who are willing to get into the market for a sharp BUY, it is important that they are patient with the oscillating indicator to get oversold and begin a curve upward.
Asides getting the entry right, these oscillators can be useful in determining your exit from a position. For a suitable SELL exit, it should be done when the oversold region is reached on the oscillating indicator. A BUY exit is due if the oscillating indicator touches the overbought zone.
Year of experience has taught me to be patient and discipline when trading as this leads to a better understanding of market factors. It’s always okay to observe two or more conditions to come at par when entering a trade or exiting as the case may be. This leads to a firm resolve when in a position.
It is most suitable to enter a BUY position (scalping) when price hits the support level and the oscillating indicator reaches the oversold region and begins a curve upward,
The most suitable entry point for a SHORT is when price touches the resistance line and our oscillating indicators reaches the overbought cone and begins a curve downward.
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