Scalping – a method of trading in the Forex market for small fluctuations of currency. The primary meaning of which is to earn 4-8 pips on every trade, at the risk of only two or three pips. In the end of the day on the M1-M5 timeframes, does a lot of deals. The main thing – a quick in and out of the deal, using limit orders.
Terms of scalping
The basic rules of scalping are:
The presence of a very small spread, no more than 3-8 pips.
Large enough Bid or Offer;
The trader must have a sufficiently long experience of trade-specific tool
Small but quiet price fluctuations.
Advantages of scalping – trading almost with minimal risk.
Disadvantages of scalping – a large volume of trade. Trading on the limit orders, ie the input and output should be very fast. With all the virtues of scalping is considered to be a very nervous type of trade, as is necessary to constantly monitor the level of the feet.
Should bear in mind the main points when indicators for scalping does not work:
with the publication of important economic news and events
when low market (holiday);
for profit at the end of sessions (Asian, European and American), usually accompanied by movements of the courses not weak.
Especially on a Friday.
As a rule the pure scalping indicators are not used in the market. Need a whole system of scalping, because it gives better results than using a single indicator.
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