Short Term ‘Scalp’ Trading the 1min Charts
In first example, trading the technical indicators on hourly charts is called swing trade, with trades lasting for a few days and sometimes even weeks. In our second example we looked at the 15min charts which traders call day trading, with trades that last hours and sometimes most of the day. Scalp trading is when you use the 1 to 5 min charts to ‘scalp’ small profits. These trades usually only last a few minutes to an hour.
You can use the FPS to scalp trade Forex on the 1 min charts. Here is how:
1. Instead of using the 10, 25, 50 EMA’s like we did in the above examples, put on the 25, 50 and 100 EMA’s.
2. Often it is best to scalp trade at the London which open (3:00AM EST) or the New York which open (8:00 AM EST) because that is generally when the currency pairs will start to move more in one direction.
3. When the actual price crosses all 3 indicators, you enter your trade, long or short. If the price crosses down through the 100 EMA, enter short, if the price crosses up through the 100 EMA go long. 4. Make sure that you book a 5-10 pip profit. That is a $50-$100 dollar profit on a regular account, and more if you bought more lots. Don’t try to hang on to you winning position to long, because the price can whipsaw back and you can lose. Take your 5-10 pip profit as soon as you can. Here is an example on the 1 min charts:
Useful Information about forex trading
Useful Information about forex trading with german language
What are foreign currency exchange rates
