Scalping Strategies for Traders and Their Indicators

 

When you practice  trading and enter the  forum, you may want to read about scalping. Scalping is one of  the strategies  that  traders try by buying after that selling goods or stocks for a short duration. The duration of  selling with buying can be  a few minutes or a part of an hour.

Scalping is  a strategy that is widely selected by traders who want to make profits with lightning.  Although approaching day trading, scalping leads to a larger capital.  Not only that, day trading is generally tried by traders every day.  In contrast to scalpers  who only carry out trades of very short duration and are not tried every day.

Scalpers use small movements of special items to earn money.   Because they  do not  get carried away with elementary analysis or information, scalpers usually  have certain technical patterns consisting of various markers.  What are they?

Moving Average

This marker  is a very easy marker and is widely used by scalpers.  Almost all trading programs have it.  The working method is quite easy to  list for the latest traders.

You settle to  make sure the  timeframe to execute the  trade after that puts  a part of the mixed line  of the moving average.  Experiment  first before  operating it. One of the recommended blends  is the  SMA 5- 8- 13 on the 2-minute chart.  This mixture is thought to be  effective for recognizing the style if you have to buy and sell. You can also  take into account if the style is about to change direction.

After being operated, you want to look at the ups and downs of the chart. When the style  is  solid, the line is to  be attached to SMA 5 or 8. If  it is  close to  SMA 13, it's time to close because the  reversal is about to be established.  To open a position again, you must wait until the entire line blends together.

Also read: Moving Average: Interpretation, Illustration, and Functions

Bollinger Bands

Bollinger bands are also  one of  the scalper markers with small timeframes  that are widely used by traders, good for stock  or forex trading. You can practice Bollinger bands using period 12 and deviation 2.

Such is the  cost of holding the lower band, take  a long position. If  the number holds the upper band, place a  short position.  Do not install stop losses and TP very much. You can use the  analogy of 10 to 5 pips between stop loss and  TP.

It should be noted that there is no perfect strategy  for trading, it is listed if you use Bollinger bands.    This marker is indeed efficiently used in the ranging or sideways  market  scope. On the contrary,  if you   use trading when the price is trending, you  can actually get injured.   This is  because Bollinger bands often have trouble scanning the band  tunnel and it affects the position you want to take.

Stochastic

This marker has a slightly different  method of  activity  from the previous 2 markers.   Usually scalpers only use this marker to meet other markers that are mixed in one system.   If you are looking for advice, the majority of reliable traders  would like to encourage you to combine it with Bollinger bands or moving averages.

Advantages and Disadvantages of Scalping

As an  alternative, scalping is a strategy that has disadvantages and advantages.  The weakness of scalping is that the technique is difficult  and requires accuracy.  Not only that, the trader must be located in front of the  screen throughout the trade.

There is also the advantage of scalping is its ability to bring profit in lightning duration.  Not a kind of long term that must wait for days, with scalping you can get trading profits on  similar days.

Another advantage of scalping is the  lightness in correcting mistakes. When  you find out about the wrong position, you can recognize it.  Next you can sort out to close the old open position and open the  current position.

Basically, scalping is a strategy that is tried by entrusting technical analysis. So if you are hooked on being a scalper, it's good to start understanding technical  strategies  that you think have a promising winning probability.   If you are indecisive,  there is nothing wrong with  asking a reliable trader  who has gone down first  to become a scalper.

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