Posts Tagged ‘indicators’

How To Clarify Your Forex Scalping Techniques

Friday, October 28th, 2011

Your forex scalping techniques are the most critical aspect of your trading success in the currency markets. You have to be confident in your analysis, swift in your execution, and always have a good perspective of your money management.

Surprisingly, your forex broker also will play a role in how well you do. With a small account, such as $1,000 USD, it can be difficult to apply the proper methods, but it can be done, as long as you have the right tools and techniques.

If you know how to scalp the forex pairs with a style you are comfortable with, then you’re much more likely to be make money faster. A forex scalper must know many special aspects of the foreign exchange market to be successful, but having a scalping technique that works, and works for you is the most critical thing you can do.

Forex Scalping Techniques Identify Trading Setups

When you are scalping, you have to be certain that when you identify your setups that you will be able to take the trade with a calm confidence, while still being prepared to get out with a loss. The issue is, how can you rarely have a loss. I know, that’s not news to you.

As long as you can see on your chart an obvious price movement, where the potential pips are really “there” for you to take, then you can make money. And to be able to do that your forex scalping techniques must be refined to show you what is really happening in the currency market. We’ve found that, although you can scalp almost any trading instrument, pairs such as the EUR/USD and EUR/JPY are the smoothest in price movments, and generally have the best spreads. And, we have found that any session open or session close is a good time to trade. That means you can be scalping the Asian session (Tokyo, Sydney), or the European session (London), or the US session (New York) with much the same profit potential.

You’ll need to make sure you only scalp when there is activity and liquidity in the market, and then you’ll want to make sure that price is really flowing on your charts. Finally, it’s best if you are scalping forex when the banks and other large-equity traders are moving the market. Then, you’ll use your forex scalping techniques you have with Logical Forex to execute your trade, and enjoy the money you have made from the effort you have made to be a superior FX scalper.

Can You Trust Forex Scalping Indicators?

Tuesday, October 18th, 2011

When you are able to establish complete trust in your forex scalping indicators, then you will be able to trade with much less effort, and enjoy your forex scalping success much more, too. If you are trading without forex indicators that you trust, then it can be a miserable experience, with many surprising losses (well, they feel like a surprise), and hesitation that will cause much grief, too. Unfortunately, most indicators are designed to make you predict what will happen in the future currency pair moves, and that is a mistake to avoid at all costs.

Consider one of the most prevalent software platforms for currency trading: Metatrader. There are an extensive number of forex indicators available for you to you, but most are based on the same basic set of principles. In general, these indicators (as with any other charting and trading platform) are based on statistics and probabilities. Mostly they are designed to show you what has happened in the past in such a way that you can see a more smooth representation of how price has moved. Then, in most cases, you are supposed to take that information and translate those numbers into an action.

Now, don’t get me wrong, this style of trading does work, and it’s what most traders use, including most forex scalpers. But there is a better way.

With forex scalping indicators designed to show you exactly what the foreign exchange market is doing Right Now, you can avoid predicting and over-analyzing the current pair. Scalping the old way, with traditional indicators, you are forced to essentially play a game with your broker. In essence, the broker is the controller of the entire game, and the not only set the rules, but they (compared to you) have and endless amount of money to trade… and against you. And if you are forex scalping the wrong way, like exposing your stops, then can can even play with the quote and take out your stops. This is what most market maker brokers do, but that is a different thing we will cover elsewhere.

Logical Forex Scalping Indicators and Trading System

But, with Logical Forex, our forex scalping indicators are designed to show you exactly what is happening in the market, and give you an edge, even against your forex broker. With our forex scalping strategy, we primarily look at the flow of the currency price and the place where the banks and other financial institutions are making their decisions. Then we wait on them to actually make their trades (after they have cleared out those unaware scalpers who have set stops). When they are actually moving price, then we join in the price movement and execute our scalp, then like a professional forex scalper, take our profit without trying to “hold for the longest run on price”. Of course, some forex scalpers enjoy holding longer than others, depending on their risk profile, but I prefer to take a small piece of a long price move, holding as long as I feel no stress.

So, with the best forex scalping indicators, like Logical Forex, we can enjoy our forex scalpling with low stress, a great deal of confidence, and a nice consistent profit.