Pivots

Effective Forex Scalping Strategy To Use

In today post, I am going to share with you an effective forex scalping strategy that I love to use in my trading. I understand that there are a lot of scalpers here in my blog and therefore decided to write a post on this topic. The main reason why most traders like to scalping […]

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    In today post, I am going to share with you an effective forex scalping strategy that I love to use in my trading. I understand that there are a lot of scalpers here in my blog and therefore decided to write a post on this topic.

    The main reason why most traders like to scalping the currency market is because of the quick profit they can get. In a scalping trade, you will enter and exit it within minutes which means that you do  not have to spend a long time on the chart.

    In order to be able to scalp the currency market effectively, you will definitely need the help of some scalping indicators like those mention below.

    Pivot Points

    The pivot points are major indicators that are used by those big dog traders and therefore the support and resistance that are created by this indicator are usually very strong.

    Therefore what you can is to plot the daily and weekly pivot on your 5 minutes chart and you can see that the price are usually repelled by them whenever they hits the pivot levels.

    Pivots

    Bollinger Bands

    The bollinger bands consists of 1 upper band and 1 lower band that forms something that looks like a pipe. Most of the time, you can see that the price are within the pipe and this is due to the strength of the upper and lower bands.

    Besides the pivot levels, the upper and lower bands of this indicator also serves as a strong level of support and resistance during trading. In fact, the upper band serves as a resistance that repelled the price downward while the lower band serves as a support that repelled the price upward.

    Bollinger Bands

    200 Exponential Moving Average

    In order to complete this scalping strategy, you will definitely need the help of the 200 EMA. The 200 EMA is voted one of the best forex indicators to use by over 100 traders and this explains the power of this line.

    If you plot one on any time frame, you will see that the price usually get repelled by the 200 EMA when it first touches it and this again gives us a very good scalping trade.

    200 EMA

    Now that you know which are the scalping indicators to use, now it is time for us to know the trade setup for this strategy.

    Since scalping is a hit and run trade, we are going to place a stop loss of 10 to 15 pips per trade and take profit at 15 to 20 pips per trade.

    Instruction for trading:

    When the price hits at least 2 of the above 3 important level of support and resistance, enter a trade in the direction of the repulsion.

    Remember to set the stop loss and target profit as per stated above.

    Although this seems like a simple strategy, it works very well for me. You can try it out to see if it works.

    If you find this information useful for you, please give me a like or tweet or +1 on google.

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