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