Making quick, but small amount of money is possible with Forex scalping. There are some quick, yet effective methods of scalping, which can enable you to gain some quick pips in a reliable way. One of the quick techniques of scalping includes using the five-minute candle charts. Search for three long candles all in a single direction. Majority of the times, you will see the forth candle continuing in the similar direction. Taking 10 pips limit and 15 pips stop loss is ideal for using this technique. One will have to move quickly and start the trade when the fourth candle starts to move. This is also known as momentum scalping.
Some effective and quick techniques
One can use the counter-trend trade to work alongside the prevailing trend. The trend can prevail for a day or for a longer time. Possibilities of catching more points are strong in pauses amid the movement. Another quick and effective method of Forex scalping is the impulsive shock method, which is based on effort of entering the Forex market when there are unanticipated strong motions. These movements can come to the surface because of important news breakouts or central bank intervention.
Using 15-minute and 10-minute charts
Another simple method of Forex scalping includes using the fifteen-minute chart when the market is opening. This method includes opening a long position as soon as the market makes two ticks beneath the fifteen-minute minimum. When profit is achieved in 1-2 points, the position closes. One can work with ten-minute candlelight as well. The rule says that scalping begins in the initial hour of market opening and during the final hour prior to market closing. When using candle charts, traders have to keep an eye on whether the market is bullish or bearish. With quick profits, you can face big losses, if you do not choose the right method of scalping.
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