Brokers For Scalping Strategy
Many Forex brokers offer their traders a feature called scalping. Scalping is a trading style that specializes in profiting off small price changes, generally after a trade is executed and becomes profitable. It requires a trader to have a strict exit strategy because one large loss could eliminate the many small gains the trader worked to obtain. In short, scalping is a rapid trading style where trader looks for small profits, between 2-5 pips by opening and closing trades that last less than a minute over and over again.
The best scalping Forex brokers offer an opportunity to hold positions for mere seconds and use tight stop-loss orders on them. Some brokers allow scalping in general, but impose some restrictions on scalpers in form of additional commissions, spreads or trade number limits. A list below will show you some brokers allowing scalping for the clients.
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What are the 3 steps of simple scalping strategy?
- Use the Moving Average to identify the direction of the current trend: If the price moves above the line it means the buyer dominates the market (uptrend) and vice versa.
- Use the CCI Indicator to identify the trend's strength: CCI shows the overbought condition when it soars above 100 points or the oversold condition when it dips below -100 points.
- Open a trade: When the price moves below the Moving Average line, it tells you that the market is all about dropping "sell" orders. In that moment, your best chance to enter this downtrend is when the price is overbought as indicated by the CCI indicator. The opposite condition applies to "buy" orders.
Continue Reading at How to do Scalping Like a Pro
What are the keys to successfully use volume indicator for scalping?
- You can use a trailing stop to lock profit, but make sure that it is supported by signals from the volume indicator.
- Avoid entering the market at least 30 minutes before and after a high-impact news release.
- Make sure to try the strategy in a demo account first.
- You can use more indicators if it's proven that the strategy gives many false signals in your backtesting and forward testing.
- Stay away from choppy price movements.
- This strategy works in major pairs.
- When volume bars slow down, it doesn't usually indicate a pullback.
Continue Reading at Easy Scalping with Volume and Price Action Analysis
How to open a buy trade with 3 EMA scalping strategy?
- Look for the lineup of 3 EMA lines in the same direction.
- Wait until the 9 EMA crosses above 55 EMA and both 9 and 21 are above 55.
- Place a buy order on the next candle after the crossover.
- Pay attention to the swing high on the left side; we should only buy from the close of the candlestick that takes out the previous swing high.
Continue Reading at How to Use 3 EMA Lines for Scalping
How could volatility work for scalpers?
Most scalpers focus on an extreme price movement in the forex market. They do not pay much attention to the actual market condition, because it only capitalizes on the price volatility. The main target is to benefit from the unbalanced demand and supply of the market caused by the lack of liquidity that may happen temporarily.
For example, when some important fundamental news causes the market liquidity to decrease and creates a significant gap between the bid and ask prices, a scalper would take advantage of the situation to gain profit. In this case, a scalper profits from the emotional reaction against the market condition.
Continue Reading at The Secrets of Successful Scalping Strategy
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