In the forex FAQ this week, we have a question from one of our fellow traders asking the below question.
What is a better time frame for a scalper and what are the indicator and its parameter to assist to do this trade?
To scalp the forex market, you will be entering and exiting your trades within a short period of time. Therefore I will suggest you to go for the lower time frame like the 1 or 5 minutes chart.
Personally I am using the 5 minutes chart when I am using my own forex scalping strategy. Since you have decided to trade with a scalping strategy, I have a few advice for you.
As a scalper, your entry and exit is extremely important. This is because you are only making 10 to 20 pips each trade and your stop loss for such trades are usually very tight.
Therefore being late in your entry by several pips can determine whether you are going to win or lose the trade. So my first advice for you is to have a very precise entry techniques. This will greatly increase your chance of winning.
For me, I use important level of support and resistance such as the 200 EMA, Fibonacci levels as well as pivot points to improve my entry technique.
My second advice for you is to exit your position when the market hits a major support or resistance level. Due to the tight stop loss that you will be placing when scalping the forex market, you should have the habit of shifting your stop loss to breakeven whenever the price approaches a strong level of support or resistance.
This is because the price will usually make a sharp repulsion when it hits a major support or resistance level.
As for the indicator to recommend to use to help you in scalping the forex market. You can read this post that I have written some times back which talks about the various forex scalping indicators to use.
I hope that I have answered your question on the time frame as well as recommending you the indicators that you can use to trade the scalping strategy.
Do feel free to give your comments below as it will be very helpful to the other traders here in this community.