Forex Scalping Exposed - Essential Survival Skills Of A Good Forex Scalper
If you are involved in currency trading, you have probably heard about
forex scalping. While most forex traders are looking for long term
deals, forex scalpers look to get in and out of a deal quickly and make
a quick profit. To succeed or even survive as a forex scalpher
obviously takes an entirely different mindset and skills, not to
mention a strong practice of discipline.
Scalpers need to be aware that the market itself is in consolidation mode about 60-80% of the time. In other words, when this is going on, there are no apparent significant changes that are happening. What you will see is that the market will not move for hours at a time and then a move will be made. As long as the forex scalper understands exactly how this works, this will become the ideal situation for the forex scalper to take advantage of.
In order to become successful at forex trading, you are going to have to develop a great sense of recognition for trends that are developing. Recognizing key support and resistance levels so that previous highs and lows can be spotted is a vital skill for the scalper. Some popular forex trading indicators used by scalpers are the stochastic and Moving Average Convergence Divergence (MACD). However, the standard parameters used in MACD may need to be customized for forex scalping.
Spotting these situations will allow the forex scalper to do what all forex traders need to do, sell on the rallies and buy the dips. The forex scalper will attempt to spot consolidation channels with a wide pip range (20-40) and have a long entry order when the price bottoms out and a short entry order when the price is at the ceiling.
Being a forex scalper is not something for every trader, but every trader must have some of the scalpers philosophy in their forex trading strategies. Developing these skills will sharpen your recognition power and allow you to make the most of your time during the forex trading day when the market appears to not be going anywhere. You will find that your overall trading practices will become much more profitable when you add this extra tool to your forex trading arsenal.
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