Friday, November 24, 2017

My Forex Scalping System Revealed

December 24, 2009 by  
Filed under Fx Tutorial

Forex scalping has become more and more popular among new traders. This is because forex scalping tactics allows the trader to see fast profit sometime within less than 20 minutes of trading and this is what entices some traders.

Although scalping the forex market can see quick profit, it can also amount to quick loss if you do not execute it with proper forex technical analysis. Due to the scalping nature of your trade as a scalper, you can enter several trades within 1 hour and it can amount to a sizeable loss if you have consecutive loss trades.

Here are the forex scalping indicators and analysis you can do:

1) Mark out the important support and resistance levels, typical support and resistance levels are

  • Fibonacci 0.618, 0.5. 0.328
  • Pivot Point S3, S2, S1, PP, R1, R2, R3
  • Previous high will be your current resistance and previous low will be your current support.

2) Use oscillating indicators like stochastic or RSI or even MACD can help you to time your entry more accurately.

  • If you are looking to SELL, you should try your best to wait for the oscillating indicator to go overbought and start to curve down.
  • If you are looking for BUY, you should try your best to wait for the oscillating indicator to go oversold and start to curve up.

Besides timing your entry, these oscillating indicators can also help you to time your exit.

  • If you go SHORT, you should be looking to exit your trade when the oscillating indicator reaches the oversold zone.
  • If you go LONG, you should be looking to exit your trade when the oscillating indicator reaches the overbought zone.

3) Confluence of Events – In trading, we should also wait for confluence of events to happen before we enter or exit a trade. Confluence of events refers to the situation where two or more conditions to enter a trade or exit a trade happen together. This can gives you more confident and assurance in the trade.

    • The best long entry point is when the price hits the support level with the oscillating indicator reaching the oversold zone and start to curve up.

  • The best short entry point is when the price hits the resistance level with the oscillating indicator reaching the overbought zone and start to curve down.

Above are the forex scalping system I have been using. Although some of you may be thinking that it is a simple strategy and may even wonder if it can make you money, you need to know that the most profitable strategy are those that are easy and simple to execute.

Note to Readers:

Do note that the above strategy is a general forex strategy that has not been fine tuned. In order for you to trade with it, please fine it tune on a demo account. If you do not know how to fine tune a strategy, please read the below

For more information on forex indicator, you can browse around this blog.

For those of you who are trading without a reliable strategy, you can take a look at my Fx Street Uni course where I will teach you the exact strategies I am using to trade for myself and user of my Forex Signal Service since 2009.

Click Here For My Course

For those of you who are interested to learn which are the indicators that can help you to identify the trend best, you can click on the link below to see the post I have written.

Useful Forex Trend Indicators

If you are interested to learn how I do my forex technical analysis, you can take a look at the post below

Forex Technical Analysis Tips

 

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Comments

21 Responses to “My Forex Scalping System Revealed”
  1. Dear Kelvin brother,

    I am just a new beginner, I see your website is very useful for all traders because
    you tell all tactics, methods unselfishly guiding for profitable trade. But some points I’m not clear yet. So, Do you have any short course and when?
    I am thankful for information on your blog. God Bless you!!!!

  2. Olayiwola says:

    I am surely getting better visiting your website.
    Thank you so much

  3. gary says:

    hi Kelvin , what time frame should i actually enter the trade when scalping , M1 or M5
    please .

    thanks for all the useful help on your site .

    rgds gmcdm

    • Lee Kelvin says:

      I will suggest that you trade on the 5 minutes cos the 1 minutes is far too noisy.

      • gary says:

        thank you Kelvin , if the trade is ranging and not over selling/buying how long should you wait??

        • Lee Kelvin says:

          Hi Gary

          You have to be patient in trading. It is like fishing. You have to wait till the market produces the setup you plan and then enter. If the setup never appear, you will never trade.

  4. krishna says:

    hello kelvin

    i am scalp trader. could you please guide me how to plot pivot points into the chart. i cant understand the support and resistance levels and usign support and resistance level how to trade?

  5. emily says:

    hi kelvin, i am a newbie in forex and i am trying to apply the scalping system, but i am not sure what volume to use when placing a trade. i have a micro account for starting up.

    • Kelvin says:

      Hi Emily

      First of all, I welcome you to the world of forex trading.

      Let says that you have an account of $10,000 and you trade with a risk of 3% per trade, this entitle you to place a trade with max risk of $300.

      If you are trading with 20 pips stop loss in eurusd. You can place 1.5 standard lot (100k per lot). This is how you should position size your trade.

  6. harry says:

    hello kelvin,

    my name is harry kelvin i need a suggestion…on 12th we have entered into a trader in eur/usd it was a sell trade 1.3596 and 1.3623 with a lot size of 2lot each and the trade is in loss to maintain the balance we have placed a buy trade in the same pair at 1.3739 and over all the trade is in a loss of -5260 till friday nite..so can u plz suggest me what to do at this position on monday..
    we will be very thankful for ur suggestion ..

    • Kelvin says:

      Hi Harry

      Sorry for the late reply. After seeing your problem, if you are still in the trade, you are still balancing the loss. Although my analysis on this pair is DOWN but there is a strong support at 1.35715. Can you update me about your status now.

  7. Boyxx says:

    Fibonacci 0.618, 0.5. 0.328 <> where is point A ( highest point ) and where is point B ( lowest point )

    A,B is the point of yesterday ? or …

    please help

    thanks

    • Kelvin says:

      Hi Boyxx

      If you are trading off the 5 minutes chart, the highest and lowest point will be from that particular chart. Usually I will take the A and B of the most recent major swing highs and lows, the best way to know if you have drawn the right fibonacci levels is to look at the price movement at the 0.618, 0.500 and 0.382 levels. If you see the price being support or resisted by these levels, you have drawn the right fibonacci levels.

  8. Joe says:

    Kelvin, How do you plot a “Pivot Point?” I do not see that anywhere in the Metatrader 4 or any other platform..and what is S3, S2, S1, etc. Thanks for your help…Joe.

    • Kelvin says:

      Hi Joe

      If you are not sure about the pivot point system, you can read up on it here

      http://www.forexindicator.org/forex-pivot-point-trading-tutorial.html

      Whether you are able to plot the pivot points or not depend on the trading system you are using. If your MT4 platform do not have the feature, you can do a manual plotting. All you need is to collect the previous day open, high, low and close value of the currency pair you are interested in and then plot it into a pivot point calculator which you can find easily online and it will automatically calculate the value of S1, S2, S3, Pivot, R1, R2 and R3 for you.

      Next you simply have to plot it on your trading platform and you are ready to use it.

  9. giliam says:

    I am just a small account short timeframe trader. I found your website the most true and honest forex site I have ever been on. I am gratefull that you are unselfishly sharing your vast knowledge and experience with us. I have already used some of your advice on the five and one minute timeframes, amazing stuff. I look all the time also at the higher timeframe(15 minute) to see if am with the trend.
    Thank you my friend. Giliam

    • Kelvin says:

      Hi Giliam

      Thks for visiting my site. You are right to always understand the trend you are in before you enter any trade. Wish you all the best in your trading and hope to have you around here.

  10. Sebastian Fook says:

    what’s the ideal time frame?

    • Kelvin says:

      Hi Sebastian

      If you are planing to be a scalper, you should be using the 15 minutes chart to have an understanding of the market trend and then move down to the 5 minute chart to do your analysis. Once you have identified a good trading opportunity, you should move down to the 1 minute chart to look for the best entry and exit position.

  11. Alex says:

    Hi, what is your stop loss with this scalping strategy? Thanks.

    • Kelvin says:

      Hi Alex

      Depending on the volatility of the currency pair you are trading, you should place your stop loss amount differently. If you are trading a low volatility pair, your stop loss can be 20 pips above a major resistance if you are in a short trade or 20 pips below a major support if you are in a long trade.

      If the currency pair you are trading is very volatile, the stop loss has to be higher as you need to give the market some space to move.

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