Scalping without indicators, as one of the most profitable options
Each trading technique has its advantages and disadvantages.
Scalping is a highly profitable trading style that is achieved by trading on market noise and price fluctuations that occur intraday.
Every market noise and the slightest deviation of quotes to the side allows the trader to enter positions and take several points of profit.
However, few of you probably thought that market noise is very difficult to predict, and the high volatility that is created during news releases can greatly shake you and your nerves, not to mention the possible risks incurred.
The strategy implies dynamic trading with a large number of transactions. Therefore, when communicating with pros in this area, almost anyone will tell you that 90 percent of a scalper’s success depends on thoughtful capital management and the ability to quickly and callously cut unprofitable orders.
Scalping without indicators on news
The most common option for scalping without indicators is, of course, news trading. I think it’s no secret that in order to make successful transactions in the market, first of all, the market must move, and the higher the volatility, the greater the chances of snatching your profit. News is a kind of fuel, thanks to which the price reaches new heights.
So how to scalp on the news? To begin with, you must make a selection of the news that you will work with, as well as clearly find out the time of release, the previous value and approximately understand which direction the market will go after publication.
To do this, you need to work with the economic calendar, which you can find on any broker website. As a rule, all news in the calendar itself is divided into low-volatility, high-volatility and medium-volatility.
Your task is to select the news that has the greatest impact on the market, and this is not necessarily large macroeconomic indicators such as GDP or interest rates; you can successfully work with various indices. Almost any news at the time of release moves the market by 10-15 points, which you, as a scalper, need to take.
What to do if you don’t know how the news will affect the market and you’ve never been familiar with this approach? I suggest using the economic calendar .
Once you have decided on the news and sorted them, you need to start trading. You must clearly know how you will act depending on the publication of data, because the market reacts to the publication simply instantly, and you may lose your profit. For example, consider the German Consumer Price Index.
This news has a strong impact on the euro/dollar currency pair. Having learned that the previous value was -0.2%, but in fact you received 0, you decide to open a buy deal. When scalping without indicators using news, there is one small feature.
Scalpers do not hold positions for long, so make it a rule to enter the market for 2-3 candles (10-15 minutes per m5) and exit the market at the first hint of a pullback. Do not forget about stop orders, because if the price goes against you, then with a sharp jump you can lose more than you even expected. So, an example of a news transaction:
Using Japanese candles.
Many traders catch pullback candles, which are called hairpins. They occur during news releases or in the midst of news action. The entry situation looks extremely simple. You observe a large candle that has an atypical size, but the same candle begins to shrink and a large tail remains.
The size of the candle tells us that the players tried to push the price up or down, but they did not have enough strength to do so, and the candle became smaller, leaving a large tail. This situation gives us an excellent entry into a market reversal, since the large tail shows us that at this stage the players do not have the strength to push the price, so it will reverse.
Trading on pullbacks is considered a risky activity, so targets are usually equal to 1-2 candles, and a stop order should be placed at the edge of the tail of the candle. Therefore, we buy if a bearish candle has formed a large downward tail, and sell if a bullish candle has formed a large upward tail. The strategy is more fully disclosed here http://time-forex.com/skalping/skalping-svechi
An example of inputs is shown below:
Trading during a flat.
Its essence is very simple: when the chart begins to move sideways in a narrow range, you need to highlight its boundaries with two lines. If the chart breaks through the upper limit of the range, we open a buy position; if the price breaks through the lower limit of the range, we open a sell position.
A stop order is placed in the center of a dedicated channel or at local extremes. An example of a position is shown in the picture:
To summarize, we can say that scalping without indicators is no less effective than using various complex trading systems. Therefore, do not complicate your life; sometimes simple solutions are much more effective than it seems at first glance.