In today forex faq, we have a question from one of our fellow traders.
Below is the question:
I love scalping and I have tried various methods.But my problem is I often enter the trade at the end of trend which leads me to losses.
Can you advice me on how to fast scalp the forex market and get profit?
The above question is from one of the readers of this blog who is interested in scalping the forex market. As you did not indicate the way you scalp the market, I am unable to comment on the strategy that you are using.
However I am going to share with you several tips on how to effectively scalp the forex market. Based on my experience and strategy in scalping the forex market, I often look for the following factors before I enter a trade.
Confluence of Supports/Resistances
If you take a look at your forex chart, you will see that the price is often being repelled by level of strong support and resistance.
Therefore if you are able to identify the levels where there are several alignment of supports or resistances, that particular level will be a good place for you to enter a trade based on the repulsion.
For example, you have identified a level where there are a confluence of several supports, you will enter a LONG trade when the price hits that level as it will most probably be repelled by the strong level of support.
Confluence of Candlestick and Support/Resistance
The next thing that I often look for is the confluence of reversal candlestick pattern with support/resistance. Imagine that you see a railway track formation at the level of strong resistance, this is a sign that the price is going to reverse and get repelled by that level.
What I will do is to enter a SHORT trade to profit from the repulsion of that level.
Do note that you do not stay in the trade for long when scalping. You will usually take profit around 15 to 20 pips and therefore your trade usually existed for only 5 to 10 minutes.
I hope that you find my above information for you and do feel free to give me your comments below as it will be very useful for other traders here in this blog.