• This question is currently being edited.

General Question

keith101's avatar

In Forex, what is scalping?

Asked by keith101 (7points) December 13th, 2012

In currency trading business how scalping is defined?

Observing members: 0 Composing members: 0

8 Answers

emilianate's avatar

Making many profits on small price changes.

trailsillustrated's avatar

a less than one hour chart, Scalping is done usually on a 15 min or less chart.

emilianate's avatar

15 minutes in not a scalper chart. Stick to 5 and 1 minute charts. You should have both up.

On choppy days, my husband scalps derivatives so he switches to the 5 and 1, but you need tight stops if you’re going to scalp because you’re competing against algorithmic traders.

trailsillustrated's avatar

@emilianate I beg to differ. Such is the noise, anything under or 15 mins is scalping. But, depends on the trader lol. And I agree with tight stops.

emilianate's avatar

The 5 and 1 are paired for high volatility from seconds to minutes. It’s also where traders set the fibonacci retracements for yellow and red star events as well as other pre-released price movements on certain macro economic data. Institutional traders follow Fibonacci retracements much more than pivot points.

15 min is paired with the 30 minute chart for intra-day traders. It’s a longer version of a short term trader but it’s complimented with the 1 and 4 hour chart to see the bigger picture. These charts are used more for technical analysis.

You can see the mechanics for yourself. Open up a paper trading account.

trailsillustrated's avatar

@emilianate like, like and like. Thank you for your very clear answer here..

Response moderated (Spam)
Response moderated (Spam)

This discussion is closed.

Have a question? Ask Fluther!

What do you know more about?
or
Knowledge Networking @ Fluther