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Forex trading - Simple Scalping Strategy
Simple Easy Forex Scalping Strategy
Here I'll show you a simple strategy to scalp the foreign exchange (forex) market. Do a simple google search for "Forex trading systems" there is a lot of internet marketers and affiliates out there trying to sell forex scalping systems and strategies, even robots! None of them take the time out to show you how to actually do it, they're just trying to sell you some useless ebook or forex bot after hyping you up about making money fast online.
How Forex Scalping works
Scalping is defined as buying and selling a security over a very short period of time (minutes or seconds) at very low risk. Some brokers who trade your currency frown upon the practice because it works directly against them. Most other brokers however, only provide a gateway to trade on your behalf and benefit from commission.
There are 3 major objectives build around this system. Remember, once you have your finished strategy you must be disciplined and stick to it. If you don't, you wont be able to measure up how your'e doing. Never be tempted to make a trade based on what you feel, YOU HAVE TO STICK TO YOUR STRATEGY! The objectives are:
- Identify trends
- Make pips
- Repeat pips
Here is my trading setup, I call it the "Super Simple Scalp" strategy:
- Trade a 10 minute chart
- Apply 10 EMA to the close
- Apply 15 EMA to the close
- Stocastic 10,3,3
- RSI 14
I use the Meta Trader 4 Platform. I only enter long in my trades, hoping make as much pips as possible before exiting. You must set a stop loss for yourself depending on how much you're comfortable with. Never ever trade outside your rules!
I place a trade on the following conditions:
- The 10 EMA crosses above the 15 EMA
- Stochastic lines are heading up but not overbought
- RSI is above 50
I exit a trade when:
- EMA lines cross in the opposite direction
- RSI crosses back below 50
Go on and try it on a practice account. The Super Simple Scalp works great for me, the settings make me certain that the conditions in the market are right. You can use other indicators but with most strategies, its just a case of predicting a market breakout. Use whatever currency you are comfortable with, I only trade EUR/USD.
Let me know what you think!