Scalping Strategies for "Forex"

Many people ask themselves what is scalping. If to explain in simple language, then scalping is an exact entry into the market.

What is scalping on Forex?

On "Forex" there is such a thing as pipsing, and very many beginning traders confuse these two concepts. Pipsing is a short-term type of trading in the foreign exchange market with a minimum profit. That is, the profit on the transaction can be only a few points, and the transaction itself takes only a few seconds. Scalping can also have a small profit, but the time the transaction by scalping can last from a few seconds (as well as during the pipsing) to one hour, sometimes even more. The length of the transaction during scalping depends on the market situation. In any case, scalping is a short-term type of trade.

The main advantages of the scalping shopping method:

1. Short-term transaction.
2. Quick profit from the transaction.
3. Scalping takes very little time. Therefore, for traders, it is possible to trade in any free time. Many traders manage to trade even during a working break.
4. Availability of trade. Scalping does not require any special analytical skills and knowledge. In order to trade in this way, short-term trading does not require a fundamental analysis. Typically, traders conduct graphic design, candlestick analysis, and also use technical analysis. Traders for market forecasting can use analytics within a day.

The main indicators for trading strategies when working with scalping

All trading strategies of scalping include different indicators. The main ones are timeframe, expiration time on binary options, as well as various technical indicators (if they are used), graphic constructions, figures. Graphical constructions are needed to denote important technical levels, image channels, drawing on the graph of extremes. Graphic figures are a construction and a designation on a chart of a triangle, double top, triple top, double bottom and other figures.

And also there are scalping strategies that use illicit trade. It is such a trade that does not use any technical indicators. Technical analysis is conducted on the basis of changes in market prices or candles, in this case candlestick analysis is used. During this analysis, the trader reviews and systematizes various candlestick patterns or configurations.

Scalping strategies, features

1. Short time periods, timeframes. Usually, such strategies are used for scalping, which can be used on M1, M5, M15, M30, H1. These are the most common timeframes for scalping.
2. A small take-profit, an average of 3 to 15 points.
3. A small stop loss, not more than 10-20 points. Quite often the stop-loss is not used at all.
4. Speed of the trader's reaction. While working on any scalping strategy, the trader is in constant psychological stress. He must be able to react quickly to any changes that occur in the market.
5. A large number of transactions for one day. On average, a trader spends from 30 to 100 transactions per trading day, with automated trading this amount can reach thousands of transactions.

Further, descriptions of various TS (trading strategies) will be presented.

Trading strategy for scalping: the Puria method

In this section, scalping on Forex will be considered. The Puria strategy refers to the most understandable and simple TS. There are several varieties of this strategy. Their main differences are the selection of moving averages. The entire trading strategy is based on moving averages and the MASD indicator. The following moving averages should be set on the working schedule:

1. With a period of AO 85. The method is linear weighted, the shift must be 0, apply to Low.
2. With a period of AO 75. The method is linear weighted, the shift should be 0, apply to Low.
3. With period AO 5. Shift should be 0. Simple method, apply to Close.

Now you need to set the MASD indicator with the following parameters 5/26/1, apply to Close.

Having set up indicators in this way, you can proceed to the trade itself and use scalping on Forex. The Puria strategy works on the H30 timeframe. You can use almost any currency pair or any underlying asset, at least, this strategy works on all major currencies. Take-profit should be set at 15 points. The stop-loss is set at will.

Rules of operation by the Puria trade method

1. When crossing all moving averages, you need to open an order. It opens in the direction indicated by the moving averages. If the AOs are directed upwards, then you need to open a deal to buy. If they, on the contrary, are directed downwards, in that case, it is necessary to sell.
2. The MASD indicator must cross the zero mark. To enter the market is necessary after the first strip of the indicator is fully formed, it is necessary to enter on the second strip.
3. It is necessary to wait for confirmation of indicators by each other. In this case, the trading strategy "Forex" - scalping Puria, after crossing the moving averages is confirmed by the indicator MASD.
4. Closure of the bargain: at the intersection of moving averages in the opposite direction or the closing of the transaction on the stop-loss.

Trading strategy for scalping "Three Moving Averages"

This is the simplest scalping strategy. This trading strategy was based on simple moving averages.

1. A moving average with a period of 3.
2. Moving average with a period of 5.
3. Moving average with a period of 8.

The idea of a trading strategy is as follows: when crossing all moving averages, you need to open your deal. The order is opened in the direction indicated by the sliders. For example, AO3, AO5, AO8 are directed upwards, in the direction of the upward trend, therefore, one must buy, that is, open an order for "buy". Similarly, when AO3, AO5, AO8 are sent down, in that case you need to sell, that is, open an order for "villages" (sale). This is the point to enter the market.

The exit from the market occurs when all joint-stock companies are directed in the opposite direction. That is, there is a reversal of the trend. For example, there was an upward movement, there was a market turn, and there was a downward movement. All moving averages changed their direction and crossed. In this case, you need to close your deal. As can be seen from the description of this trading strategy, everything is very simple. It was thanks to simple trading strategies that scalping on Forex became very common. The "Victory" strategy, which will be presented later, is also one of the simplest and most popular among the TS, it is a channel forex strategy.

TC "Victory": conditions

Many traders are interested in scalping on "Forex". The "Victory" strategy is an indicator trading strategy. This trading strategy is based on several technical indicators. Most of the indicators will need to be downloaded from third-party resources, since they are not the main ones for the MetaTrader 4 trading platform.

The list of indicators that are used in this trading strategy: TMA is the main indicator, as well as SSRC, Currency Power Meter. It is possible to add additional indicators:

• HP_DIFF - to close positions.
• Master Money Bot is used to calculate the lot.
• VE_AIMS is used when modifying orders.
• Scalping strategy "Victory" is used on timeframes M1 and M5.

You can not trade and use this vehicle during the market entry of important news. Trade stops 25 minutes before the news, and resumes after 25 minutes after they pass.

The rules of trade on the Victory CU

If the main indicator is pointing upwards, then you will need to buy. Terms for purchases: TMA is directed upwards, the market price touched the bottom line of this indicator and went to the turn; SSRC indicates upward direction, channel width more than ten points; Currency Power Meter shows the strength of the base currency more than the strength of the quoted currency. Profit is set at 5 points, stop-loss is set at 15 points. On the M5 timeframe, the market price is at the top or middle of the channel. Similarly, only in the mirror image, sales are made in the foreign exchange market. Exit from the market - after the take-profit.

What is scalping on binary options?

On binary options, scalping is Turbo-options short-term, lasting sixty seconds, or one minute. In addition to Turbo, scalping options on BO include options that last from one minute to fifteen. Consider the two most popular trading strategies for Turbo-options.

The "binary scalping" strategy: the Martingale method

The basis for this trading strategy is an increase in the initial rate, if the option closed with a loss. In order to work in this way, the trader will need a large deposit. Immediately need to warn that this scheme of trade is associated with high risks and refers to aggressive methods. Basically, all trading strategies for scalping use an aggressive technique.

The advantage of this scheme is that you can get a big profit in a short time. The negative side is the risks. Therefore, each trader has to choose which method he will work with. Or it will be a classic scheme of work, when the risks for trade transactions are minimal, but the profit will also be much less. Or it will be an aggressive method of trading, when the risks on the deals will be high enough, but the profit will also be big.

Trading strategy for binary options by the method "Pyramiding"

Unlike Martingale, the basis for this trading strategy is to increase each bet if the option is closed with a win. In this case, the risks of a trade transaction are minimized, since all the risk is only for the profit. The most that can be lost is the initial bet. Profit, like a snowball, gradually accumulates, and the trader risks only the received profitability. Therefore, when working on this trading strategy, a large deposit is not required. However, such a vehicle also has its own drawback, which lies in the process of recovery. It should also be remembered that these two systems are mainly used in various casinos, in games. And, as many know, there is a completely different percentage of winning and losing.

For example, with a bet of one dollar in a casino, the user will receive a 100% win, and on binary options, the winnings will be between 70 and 90%. This percentage should be taken into account when increasing rates during a loss (winnings, when working with the method of "Pyramiding") on options.

In conclusion, it is worth recalling that the work on binary options, as well as on the Forex market, is associated with high risks. Any trader has a high probability of both winning a certain position, and losing part or even all of his investment. Therefore, before you start this kind of earnings, you must definitely familiarize yourself with the rules of trading in the foreign exchange market, as well as complete training and get relevant practice in the training account that brokers provide. Absolutely all training accounts (demo accounts) are provided by brokers free of charge. Every trader has every opportunity to try his hand, without risking his own money, on such a training account. And after the trader passes the preparatory stage and learns to independently forecast the market, then you can go to a real trading account. The best strategy for scalping is well tested and tested by the trader.