When it comes to trading strategies, scalping is one of the most well-liked and successful approaches for those who want to profit from little price swings quickly.
Forex scalping is a day trading strategy involving purchasing or selling currency pairs in seconds or minutes, frequently closing off several trades daily.
Traders Union experts highlight the best scalping strategy proven to work effectively in the market.
Best Scalping strategies
According to Traders Union experts, the best 5 Forex scalping strategies are:
1 Minute scalping strategy;
The low target per trade is one of the main characteristics of this strategy, which requires traders to place more emphasis on quantity than quality. To reach their profit goals, traders frequently place more than 100 trades daily in this market.
The Stochastic Oscillator and two Exponential Moving Averages (EMA) with a 13-period and 26-period setting should be used by traders to execute this technique. These indications can aid traders in deciding when to enter and leave a deal. Remembering that a trader’s preferences can affect the period parameters is vital.
Moving average ribbon entry strategy;
Traders must plot a mix of 5-8-13 SMAs on the chart to use this method. When the ribbons line up to show an upward or downward trend, it suggests a strong pattern likely to last. As a result, depending on the trend’s direction, traders might enter either a buy or sell short position.
The ribbons on the chart will level off, and the price may frequently cross the ribbon if the market is experiencing range swings. This suggests thBEat momentum is waning, which favors a range or reversal. Therefore, traders must pay attention to the ribbons’ realignment, which shows more space between each line by rising or lowering and spreading out.
Bollinger Band scalping;
Bollinger Bands are a valuable trading tool for Forex scalpers in a choppy market. It is a tool for technical analysis that displays the price’s standard deviation in relation to its moving average.
Low-spread currency pairs in the Forex market can be employed with this method. These pairs are suitable for scalpers who want to place several transactions quickly because they are often the least volatile.
Scalpers should first draw Bollinger Bands on their chart before using the Bollinger Band scalping approach. The top, lower, and middle bands are the three lines that make up the bands. The upper and lower bands are usually set two standard deviations apart from the middle band, which is commonly a 20-period simple moving average.
RSI scalping;
Because of its efficiency in identifying probable market reversals, the RSI scalping approach is a popular choice among Forex traders. The RSI is a price movement indicator that indicates when a currency pair is oversold or overbought by measuring the pace and change of price movements. Scalpers can quickly spot these indications and enter or exit trades by changing the RSI to a shorter time frame.
Traders Union advised that this technique necessitates a thorough comprehension of the RSI and market conditions, as false signals might occur. Before entering a trade, traders may consider combining the RSI with additional indicators for confirmation.
Parabolic SAR indicator scalping.
An indicator that is frequently used in Forex trading to identify trend direction and probable reversals is the Parabolic SAR (Stop and Reverse). Additionally, it might be a helpful tool for scalping tactics. This indicator creates a pattern of dots above or below the price to indicate probable shifts in the trend.
Traders will often seek for the dots to be positioned below the price, signaling a bullish trend, or above the price, signaling a bearish trend, when employing the Parabolic SAR for scalping. Traders can utilize the dots as stop loss levels for their trades once a trend direction has been determined, trying to make a few pip profit before closing the position.
Traders Union revealed that in choosing the best scalping strategy, traders must do the following
Ø Do some research and assess your skills.
Ø Test the chosen strategy in a demo account.
Ø Concentrate on one currency pair.
Ø Choose high liquidity and volume pairs.
Ø Consider your temperament.
