Forex Scalping Strategies

Many people wonder what scalping is. In simple terms, scalping is the exact entry into the market.

What is Forex scalping?

On the "Forex" there is such a thing as pipsing, and very many beginning traders confuse these two concepts. Pipsing is a short-term type of trading in the foreign exchange market with a minimum profit. That is, the profit on the transaction can be only a few points, and the transaction on time takes only a few seconds. Scalping can also have a small profit, however, in time the transaction using the scalping method can last from a few seconds (as well as during pipsing) to one hour, sometimes even more. The duration of a transaction during scalping depends on the market situation. In any case, scalping is a short-term type of trading.

The main advantages of the scalping trading method:

1. Short term transaction.
2. Quick profit from the transaction.
3. Scalping trading takes very little time. Therefore, for traders there is the opportunity to trade in any free time. Many traders manage to trade even during the working break.
4. Availability of trade. Scalping does not require any special analytical skills and knowledge. In order to trade using this method, short-term trading does not require a fundamental analysis. Typically, traders carry out graphical constructions, candlestick analysis, and also use technical analysis. Traders can use intraday analytics to predict the market.

Key indicators for trading strategies when working with scalping

All scalping trading strategies include various indicators. The main ones are such as a timeframe, expiration time on binary options, as well as various technical indicators (if used), graphical constructions, figures. Graphic constructions are needed to indicate important technical levels, image channels, drawing extremes on the graph. Graphic figures - this is the construction and designation on the graph of a triangle, double top, triple top, double bottom and other shapes.

And there are also scalping strategies that use indicatorless trading. This is a trade that does not use any technical indicators. Technical analysis is carried out on the basis of changes in market prices or candles, in this case, candle analysis is used. During this analysis, the trader considers and organizes various candle patterns or configurations.

Scalping strategies, features

1. Short time periods, time frames. Typically, these strategies are used to work with the scalping method, which can be used on M1, M5, M15, M30, H1. These are the most common scalping timeframes.
2. A small take profit, an average of 3 to 15 points.
3. Small stop loss, no more than 10-20 points. Quite often, stop loss is not used at all.
4. The response rate of the trader. While working on any scalping strategy, the trader is in constant psychological stress. He must be able to quickly respond to any changes that occur in the market.
5. A large number of transactions in one day. On average, a trader conducts from 30 to 100 transactions in one trading day, with automated trading this number can reach thousands of transactions.

Next, descriptions of various TS (trading strategies) will be presented.

Scalping Trading Strategy : Puria Method

This section will discuss scalping at Forex. Puria's strategy belongs to the most understandable and simple TS. There are several varieties of this strategy. Their main differences are the selection of moving averages. The entire trading strategy is based on moving averages and the MASD indicator. It is necessary to establish the following moving averages on the work schedule:

1. With a period of AO 85. The method is linear weighted, the shift should be 0, apply to Low.
2. With a period of AO 75. The method is linear weighted, the shift should be 0, apply to Low.
3. With period AO 5. The shift should be 0. The Simple method, apply to Close.

Now you need to set the MACD indicator with the following parameters 5/26/1, apply to Close.

By setting the indicators in this way, you can proceed to the trading itself and use scalping on the Forex. Puria's strategy runs on the H30 timeframe. You can use almost any currency pair or any underlying asset, at least this strategy works on all major currencies. Take profit must be set at 15 points. Stop loss is set as desired.

The rules of the trading method Puria

1. When crossing all moving averages, you need to open an order. It opens in the direction where the moving averages indicate. If the AOs are directed up, then you need to open a deal to buy. If they, on the contrary, are directed downwards, then you need to sell.
2. The MACD indicator should cross the zero mark. You need to enter the market after the first strip of the indicator is fully formed, you need to enter on the second strip.
3. It is necessary to wait for the indicators to confirm each other. In this case, the Forex trading strategy - scalping Puria, after the intersection of moving averages is confirmed by the MASD indicator.
4. Closing a trade transaction: when crossing moving averages in the opposite direction or closing a transaction by stop loss.

Trading strategy for scalping "Three Moving Averages"

This is the easiest scalping strategy. This trading strategy is based on simple moving averages.

1. Moving average with a period of 3.
2. Moving average with a period of 5.
3. Moving average with a period of 8.

The idea of ​​a trading strategy is as follows: when crossing all moving averages, you need to open your transaction. An order is opened in the direction that the moving ones point. For example, AO3, AO5, AO8 are directed upward, in the direction of an upward trend, therefore, you need to buy, that is, open an order for “buy” (purchase). Similarly, when AO3, AO5, AO8 are directed downwards, in this case you need to sell, that is, open an order for “sat down” (sale). These are points to enter the market.

The exit from the market occurs when all AOs are directed in the opposite direction. That is, there is a trend reversal. For example, there was an upward movement, there was a market reversal, and there was a downward movement. All moving averages changed their direction and crossed. In this case, you need to close your deal. As can be seen from the description of this trading strategy, everything is very simple. Thanks to simple trading strategies, scalping on Forex has become very common. The “Victory” strategy, which will be presented later, is also one of the simplest and most popular among the TS; this is a channel forex strategy.

TS "Victory": conditions

Many traders are interested in Forex scalping. The Victory Strategy is an indicator trading strategy. This trading strategy is based on several technical indicators. Most indicators will need to be downloaded from third-party resources, as they are not the main ones for the MetaTrader 4 trading platform.

The list of indicators that are used in this trading strategy: TMA is the main indicator, as well as SSRC, Currency Power Meter. It is possible to add additional indicators:

• HP_DIFF - to close positions.
• Master Money Bot is used to calculate the lot.
• VE_AIMS is used when modifying orders.
• The Victory scalping strategy is used on the M1 and M5 timeframes.

You cannot trade and use this vehicle while entering the market of important news. Trading stops 25 minutes before the news, and resumes 25 minutes after they pass.

Trading Rules for the Victory Trading System

If the main indicator is directed up, then you will need to buy. Conditions for purchases: TMA is directed up, the market price touched the bottom line of this indicator and went on a reversal; SSRC indicates the upward direction, the channel width is more than ten points; Currency Power Meter shows the strength of the base currency more than the strength of the quoted currency. Profit is set at 5 points, stop loss is set at 15 points. On the M5 timeframe, the market price is at the top or in the middle of the channel. Similarly, only in mirror image, sales are made on the foreign exchange market. Exit from the market - upon reaching take profit.

What is scalping on binary options?

On binary options, scalping is a short-term Turbo option lasting sixty seconds, or one minute. In addition to Turbo, options ranging from one minute to fifteen are a type of scalping on BOs. Consider the two most popular trading strategies for Turbo options.

Binary scalping strategy: Martingale method

The basis of this trading strategy is to increase the initial rate if the option closed with a loss. In order to work in this way, a trader will need a large deposit. It is immediately necessary to warn that such a trading scheme is associated with high risks and refers to aggressive methods. Basically, all trading strategies for scalping use an aggressive technique.

The advantage of this scheme is that you can get a big profit in a short time. The downside is the risks. Therefore, each trader will have to choose which method he will work with. Or it will be a classic scheme of work, when the risks of trading transactions are minimal, but the profit will also be much less. Or it will be an aggressive trading method, when the risks of transactions will be high enough, but the profit will also be large.

Trading strategy for binary options using the Pyramiding method

Unlike Martingale, the basis of this trading strategy is to increase each bet if the option closed with a win. In this case, the risks associated with a trade transaction are minimized, since all the risk falls only on the profit received. The most that can be lost is the original bet. Profit, like a snowball, gradually accumulates, and the trader risks only the profitability. Therefore, when working on this trading strategy, a large deposit is not required. However, such a vehicle also has its drawback, which lies in the recovery process. It should also be remembered that these two systems are mainly used in various casinos in games. And, as many people know, there is a completely different percentage ratio of winning and losing.

For example, with a one-dollar bet in a casino, the user receives a 100% win, and on binary options, the win will be from 70 to 90%. This percentage should be taken into account when increasing bets during a loss (winnings, when using the Pyramiding method) on options.

In conclusion, it is worth recalling that working on binary options, as well as on the Forex market, is associated with high risks. Any trader has a high probability of winning a certain position, as well as partially or even completely losing their investments. Therefore, before embarking on this type of earnings, it is necessary to familiarize yourself with the rules of trading in the foreign exchange market, as well as undergo full training and get appropriate practice on the training account that brokers provide. Absolutely all training accounts (demo accounts) are provided by brokers for free. Any trader has every opportunity to try his hand, without risking his own money, on such a training account. And after the trader goes through the preparatory stage and learns to independently predict the market, then you can go to a real trading account. The best strategy for scalping is a well-developed and tested TS trader.