Tuesday, April 24, 2012

Forex Scalping System For Currency Traders

August 25, 2009 by  
Filed under Forex Strategies

There are a group of subscribers to my newsletter that are interested in learning how to create their own forex scalping system.

Therefore in this post, I will go through some of my forex scalping strategies so that you can put them to use for your trading.

When it comes to scalping the market, there are a few factors you have to put in mind.

  • You are going to have low risk reward ratio. When you are scalping the market, you are only looking for profit around 15 to 20 pips but it is hard to find entry with low stop loss less than your profit. Therefore you are going to lost more than you can make for every loss trade.
  • To compensate for that, you need to have a high winning probability for forex scalping to be feasible for your account.

Here are some forex scalping system that I use

  • Look for key support and resistance: As price usually are repelled by the key support or resistance level, there are a high chance that you can enter a trade opposite to the current movement trying to make profit from the repulsion.

What are the key support and resistance levels?

  • Pivots: pivot trading are used by big dog and it usually provides very strong support or resistance and this is where you can enter your trade.
  • Fibonacci Extension: Fibonacci also serve as good level of support and resistance especially the 0.318, 0.5 and 0.618 level. “Keep a LOOKOUT for them”

  • Past Highs and Lows: You need to know that the previous high will now turns into your new support and previous low will now turns into your new resistance.

With the understanding of these important support and resistance levels, you can now setup your own forex scalping system with these levels in mind.

Remember: Try them out in the demo account first before trading them LIVE.

Other Related Posts:

  1. Forex Scalping Tools To Help You Identify A Good Entry
  2. 4 Currency Trading Basics Tips For The New Traders
  3. How To Trade Currency Using Support and Resistance
  4. Ways To Make Money Trading Currency
  5. 5 EMAs Forex System Course Recommendation

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!

 Subscribe to Forex Traders Newsletter