Forex Scalping as a strategy. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! For me if trading scalping in forex is taking 10 ticks out of the market maybe a little bit less. However, you need to take care not to be too aggressive although there is a degree of flexibility there. I used to be a very active scalper in the past particularly on markets like Crude Oil and the Dax. I’m far less aggressive with my frequency these days preferring to choose and pick my levels a bit more. From my perspective you have three choice to make if you’re scalping:
1) stay out of trading
2) the other is that you’re fading momentum pulses
3) you’re following momentum assuming momentum is going to continue
For the majority of the time scalping for me is a one-minute chart; some people use different timeframes but that’s fine. For me using hourly charts is not scalping but a day trade. I usually consider scalping trades lasting for 1, 5 up to a maximum of 10 minutes depending on how volatile the instrument is. Maybe even much shorter and just 15 seconds if you’re hitting some great volatility. You’re basically taking advantage of short-term inefficiencies and this type of trading can be quite hard and tricky but in the right environment it can really suit you if you have the right personality type. If you’re trading currencies you might trade from 8am till 10am to coincide with the FTSE and European Opens. You’re going to trade the GBP or EUR pairs; that kind of thing. You need some kind of structure/strategy and one thing you can do is to fade fakeouts. So in other words when the market tries to push to a new level and it just stalls you take a countertrend trend. But with scalping you have to be really strict with stops – if its not working you have to exit in a flash.
What is Scalping in Forex & How do You Do It? ?