Best Forex Scalping Strategy June 2020
A scalp trader looks for various opportunities to make money as much as possible. It can be done set profit target amount per trade or by tracking stocks breaking out to new intraday highs. Some scalp traders depend highly on upcoming news or current events. Hence there are many top Forex scalping strategies which can be used by the traders to make money in the market.
1. Scalp trading with an oscillator
Using an oscillator as the indicator is the most attractive way of scalping the market. It leads to the price action and looks very simple but it is one of the hardest methodologies to perform. Oscillators sometimes provide wrong signals as they are leading indicators. This provides the advantage of accurate prediction.
This is because as you scalp the stock with one oscillator it is possible to predict the price action 50 % of the time accurately. But it requires a high win to lose ratio due to increased commission costs. 50 % may prove a profitable ratio for other strategies but when scalping it needs better.
2. Scalp trading with the stochastic oscillator
This is a simple forex scalping strategy that uses stochastic indicator and 200EMA to buy or sell trades. The slow stochastic includes a lower level and an upper level. The lower level indicates oversold area while the upper level indicates the overbought area.
When the two lines of the indicator cross downwards from the upper area, it generates a short signal while the crossing of the two lines of the indicator upwards from the lower area generates a long signal. You can sell only when the trend is down and buy when the trend is up.
3. Scalp trading with stochastic and Bollinger bands
This strategy includes a combination of stochastic oscillator and Bollinger bands.This strategy indicates to enter into the market when the stochastic generates a proper oversold or overbought signal and the condition is confirmed by the Bollinger bands.
To get the indicator and confirmation from Bollinger bands, the price is required to cross the red moving average in the middle of the indicator. You can stay with each trade until the price touches the opposite Bollinger band level.
The stochastic oscillator and Bollinger bands complement each other as stochastic oscillator helps in starting up of any scalping while Bollinger bands help it on the way.
4. Scalp at support and resistance
This forex scalping method is also known as high-frequency support resistance forex scalping system. The support and resistance indicator is the only indicator that you might require.
This Forex scalping strategy simply shows the highs and the lows make you choose between fades and buys.
It includes two main things that are low volatility and a trading range.
Low volatility is required to reduce the risk of things going against you when you scalp for the first time while trading range provides you with a simple method to make decision-related to placing of entries, stops and exits.
Scalping is quite a popular style for many traders due to the chances of many opportunities within the same day. It provides with a high chance of getting an entry signal. A trader cannot expect to gain more than 10 pips during the process of scalping or losing 7 pips per trade. Basically, scalping is performed with high volume and that is why many traders trade with much higher volumes during their Forex scalping sessions.
It is concluded from the above strategies scalping proves to be an effective strategy for those users who want to have a supplementary strategy. Users achieve higher profits depending on the forex scalping they perform as if they perform more forex scalping they have more chances of getting higher profits. The strategy can be chosen not only on the basis of the personality but also on trading style and abilities.
Forex scalping strategies depends on the time of the user that he is willing to put into trading. Scalping the forex market requires constant analysis which can be a full-time job and it requires few hours to scalp currency pairs. To get success every user needs to predict the market well.