Scalping the forex market is something that all new traders aspire
to do. It is however not easy and requires allot of concentration and
discipline.
Once you decide on a set you are going to use you will need to
spend a few months religiously for a couple of hours a day trading on
demo until you get to know your setup and a feel for scalping it.
A popular way to scalp the forex on M1 charts is to use hull
moving averages. Plot the following WMA's (Weighted Moving Averages) on
your chart: 10, 20, 30, 40, 50, 60, 70, 80, 90, 100, 110, 120, 130,
140, 150, 160, 170, 180, 190, 200, 210, 220, 240. Now set price to a
line on Average or, if you don't have that, set it to line on Close.
Set all the WMA's to one color that is different to price.
This will create a pretty chart. Using these WMA's you can
easily see the strength of a trend, you will notice that price tends to
retrace back and forth from the moving averages.
What we are looking for is resistance in a up trend or support
in a down trend in the form of double top or something similar. Once
you find this area wait for a convincing break of it following the
trend and then enter to scalp part of the move.
This method takes practice, don't expect to be able to pull it
off straight away, open a demo account with a broker that offers
spreads of a pip or less and trade every day at the same time for at
least two months. I guarantee you will see great improvements as you
become familiar with the setup and the flow of the market.
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