Scalping in the price channel
The basis of this Forex strategy was the price fluctuation within the price channel; it is the trend movement range that will serve as a guide for opening transactions.
Looking at any of the charts of the currency pair, you will immediately notice that on a minute time period the main movement towards the existing trend and price rollbacks are clearly monitored.
If the correction value is more than 10 points, you can try trading in both directions, thereby earning more in the same period of time.
The work begins with building a price channel; the easiest way to do this is by installing one of the channel indicators, at your discretion, in the trader’s trading terminal.
The main thing is that he independently builds support and resistance lines on a minute time period.
You will find a selection of channel indicators here - http://time-forex.com/tehanaliz/in-kanalov
Scalping in a price channel involves the following steps:
1. Analysis of the width of the price channel - after the price channel has been built, you can analyze its width and if it is less than 8-10 points, then it is best to switch to a higher time frame.
2. Choosing the direction of trades - if the magnitude of rollbacks exceeds 10-15 points, you can trade both with the trend and against it. The main thing is to enter the market at the moment when the price begins to move back.
3. Currency pair - selected solely by the size of the spread, the smaller it is, the greater your profit and the less risk, since the transaction is closed faster, a good solution would be to use a floating spread, sometimes its indicator is only 0.1 points.
4. Dealing center - be sure to work only with brokers for scalping , and there are no restrictions on conducting short-term transactions.
5. Order execution is definitely instantaneous, or it is also called accurate; when trading using the scalping strategy, deviation in the price channel is not allowed, which exists with the market version of order execution.
6. Lot - the more the better, as noted in other articles, you can trade to the maximum using the highest leverage.
Scalping trading
After the preparatory procedures, you can proceed directly to the trading itself; everything here is quite simple.
Buying from the support line of our price channel after the price has gone up, closing the deal after receiving a few points of profit.
Selling at the upper line of the channel when the rate moves in a downward direction, closing the deal as soon as we make a profit.
An important aspect is closing transactions with a losing position, here everyone sets their own level of losses, I close with thirty points in the red, you can change this level depending on the dynamics of the trend and the width of the channel in which you are trading.
An excellent trading time in this case is a flat; it is during a horizontal movement that the price often forms a stable and well-predicted channel.
Read all about scalping in the section - http://time-forex.com/skalping