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keith101's avatar

In Forex, what is scalping?

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

In currency trading business how scalping is defined?

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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..

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