Scalping the Forex Market for Profits Every Day
Scalping the Forex market is something that all new traders aspire to do. It is however not easy and requires allot of concentration and discipline.
Once you decide on a set you are going to use you will need to spend a few months religiously for a couple of hours a day trading on demo until you get to know your setup and a feel for scalping it.
A popular way to scalp the Forex on M1 charts is to use hull moving averages. Plot the following WMA's (Weighted Moving Averages) on your chart: 10, 20, 30, 40, 50, 60, 70, 80, 90, 100, 110, 120, 130, 140, 150, 160, 170, 180, 190, 200, 210, 220, 240. Now set price to a line on Average or, if you don't have that, set it to line on Close. Set all the WMA's to one color that is different to price.
This will create a pretty chart. Using these WMA's you can easily see the strength of a trend, you will notice that price tends to retrace back and forth from the moving averages.
What we are looking for is resistance in a up trend or support in a down trend in the form of double top or something similar. Once you find this area wait for a convincing break of it following the trend and then enter to scalp part of the move.
This method takes practice, don't expect to be able to pull it off straight away, open a demo account with a broker that offers spreads of a pip or less and trade every day at the same time for at least two months. I guarantee you will see great improvements as you become familiar with the setup and the flow of the market.
by Dean Saunders