What is Scalping?
Scalpers can make thousands of trades within a given trading period. There are three characteristics of scalping strategies: short positions, small profit margins, and high levels of leverage. Scalpers attempt to target price gaps and other short-term trading “loopholes” that allow them to quickly turn around a large position for a profit.
In order to find the opportunities for scalping, you will need to begin by selecting a few key technical indicators. These indicators can help you determine when short-term price gaps are likely to happen.
Because scalpers focus on short-term positions with low-profit margins, the best scalping strategies (such as the Triple S strategy mentioned below) require some leverage. It's recommended that scalpers start with a large amount of capital. Opening and closing larger positions allow you to reduce the marginal costs of trading and maximize potential gains.
The Simple Scalping Strategy was exclusively designed for scalping. You can give it a try on a 1 hour or 4 hour time chart. Feel free to try it out and let us know how it works by commenting below!
We feel it works best with the 5 minute and 15 minute time chart. You can try this with a 1-minute scalping strategy. But we will focus on M5 and M15 charts.
This is a highly profitable forex scalping strategy that uses a very accurate scalping indicator.
The simple scalping strategy uses the volume indicator coupled with price action analysis.
Let’s talk about this indicator for a bit, shall we?
What is the Volume indicator for Forex? How does it Work?
To start, here is what it looks like: