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What is Scalping?

Scalpers can make thousands of trades within a given trading period. There
are three characteristics of SCALPING STRATEGIES: short positions, small
profit margins, and high levels of leverage. Scalpers attempt to target price
gaps and other short-term trading “loopholes” that allow them to quickly
turn around a large position for a profit.
In order to find the opportunities for scalping, you will need to begin by
selecting a few key technical indicators. These indicators can help you
determine when short-term price gaps are likely to happen.
Because scalpers focus on short-term positions with low-profit margins, the
best scalping strategies (such as the STT strategy mentioned below) require
some leverage. It's recommended that scalpers start with a large amount of
capital. Opening and closing larger positions allow you to reduce the
marginal costs of trading and maximize potential gains.
The Short-Term Trading Strategy was exclusively designed for scalping. You
can give it a try on a 1 hour or 4 hour time chart.

We feel it works best with the 5 minute and 15 minute time chart. You can try this with a 1-
minute scalping strategy. But we will focus on M5 and M15 charts. This is a highly profitable
forex scalping strategy that uses a very accurate scalping indicator.

The short-term trading strategy uses the volume indicator coupled with price action analysis.
Let’s talk about this indicator for a bit, shall we? What is the Volume indicator for Forex? How
does it Work? To start, here is what it looks like:

The VOLUME INDICATOR could be interpreted as the “fuel tank of the major
trading machine.” Some argue that the volume indicator cannot be used
with trading in the forex market. This is because there is no “central
exchange” so how can it be read effectively? Another argument is that the
volume that you see for Forex is the “Tick” volume that occurs.
This means you are not seeing the entire volume that is being traded at the
time like you would with stocks. The tick volume is measured by how much
the price is has ticked “up” or “down” in that particular candle bar. So the
more people are getting in at the time, the longer the volume line will
become.
This is because there will be more movement in price action with all of
those entry orders flying in. So it makes sense that the volume indicator is,
first of all, very accurate, and second has no real lag to it. It is currently
showing you what the price action is doing the number of “ticks” on that
candle bar. This results in the bar looking like this:

Scalpers use VOLUME INDICATOR for multiple reasons.

Volume and price have a very strong, short-term relationship, but changes
in trading volume usually happen before sustained price movements.
Paying attention to volume indicators makes it possible to take advantage
of these movements before they actually occur.

Using candlestick Charts can also help scalpers get a quick view of the
market. Candlestick charts contain more information than simple price
charts (such as daily price ranges), allowing traders to understand current
price trends. Below, we will discuss our one minute scalping strategy.

One Minute Scalping Strategy

Scalping is a trading strategy that usually works best using a short-term

time frame. Contrary to position trading strategies, scalping focuses on
making many profitable trades with notably small margins
Scalping is ideal for day traders and individuals who are capable of making
key decisions in short amounts of time. Usually, you will not have much
time to conduct a thorough fundamental and technical analysis while
scalping. Moving averages are constantly changing and prices are
constantly being “corrected.”
Whether you are scalping EUR/USD, other currency pairs, or other assets
outside of forex, it’s important to pay attention to the details. Scalping
typically occurs in 5-20 minute increments.
However, if you were trying to implement a one-minute scalping strategy,
volume indicators, M5/ M15 time charts, and price action trends should be
the first things you look at.
The key to scalping while using short time frames is to identify price
changes before the rest of the market has had the chance to act. You
should also be willing to accept very low profit margins— gaining less than
1% on a given action will still usually be in your best interest. Because of
this, many scalpers may implement tight stop-loss and stop-limit orders
over time.
The Short -Term Trading Strategy Rules - Best Scalping System
Side Note** Since you are all the way down to an M5 or M15 time chart the
price is very sensitive to any and all news. Because of that, I would not use this
strategy 30 minutes before and after a major news announcement. To find out
if there will be a news announcement JUST BE UPDATED WITH NEWS

Step #1: Apply Best scalping strategy indicator: Volume

Any trading system platform is okay because the Volume Indicator comes
standard on all trading systems (platforms).

Step 2: Go to an M5 or M15

Time Chart
In this particular M5 time chart we are looking at a USDJPY pair.
What you want to look for first is if the volume indicator is showing you any
trend, reversal, or stagnant price action. If the volume indicator increase, so
will the price action. This is because there is excess of interest in that
currency pair.
Once you see a drop off in the volume indicator, you know that there are
fewer “ticks” and hence less interest in that trend. The strategy we want to
focus on mainly is TREND TRADING. You can use the volume indicator for
reversal trades. But that’s not something we are interested in with this
strategy.
Step # 3 Of the Best
Scalping System is to analyse the Volume Indicator: Look for a healthy
Uptrend or Downtrend. Find pullback in Price action and wait for Volume to
Slow Down or “Quiet down.” The volume indicator should tell you an
enormous amount of information. If you see the volume indicator do this:

You know that the trend is either:

A. Dying and heading for a REVERSAL.
B. Take a break before continuing to the upside.
In this case, it took a break. There were fewer buyers and sellers at the time
(traders making trading decisions). Then they picked up and continued to
the upside. Our strategy takes advantage of this pullback before the price
action continues upward in this example.
So in this analysis step to the strategy you need to check out the volume
indicator. Based off of what you now know, make a good trading decision
based off of the current price action. Using our example, you should see a
steady uptrend followed by a pullback/retracement phase.
Like this:

Step # 4 Once you see the Volume Rise/Spike (after if slowed down) Make
your Trade Decision Based off of Current Price Action:
Best Scalping System
This part is all up to you.
There is no "line crossing," "arrow appearing" or "a small voice telling you
to buy now!" You have to understand a little bit about how the price action
works before you decide on your entry.
Using our example, the Volume indicator shot up drastically meaning that
traders are getting in on the action and thus driving the price upwards!
Take a look:

Once you see this big spike or see that the volume indicator is showing that
there is some action heading your way you want to get ready to enter this
BUY trade because all things are pointing upwards.
Entry/Exit Strategy for the Short-Term Trading Strategy
With the current structure of this trade, it made sense that since we saw
our "spike" in the volume indicator and it broke this small retracement
trend we pulled the trigger and entered a buy!

Your exit strategy is simple. You go for 10-20 pips. Also, You Place a 5-8 pip stop loss. Once
you are up 10 pips move your stop loss to 5 pips to lock in a small profit (unless the spread is
very large which you would most likely break even then.)

This 20 pips in under 5 minutes will not happen every time, but when it
does it will surely make you smile The reason we say go for 10-20 pips is for
cases like this where you see a big jump after the retracement of the main
trend. You do not want to get out too early.
Consider this strategy on any of the major currency pairs and you should
see some great results!
The rules for a SELL trade will be exactly the same, only opposite on your
chart. (I.E. instead of starting with an uptrend first it will be a downtrend
instead) Other Technical Indicators for Scalping Strategies
As you can see, our Short-Term Trading Strategy mainly uses volume
indicators and candlestick charts. We developed this strategy knowing that
these indicators give traders the tools they need to make quick and precise
trading decisions. Because scalping is driven by technical analysis, you
should consider using other technical indicators as well.
Exponential Moving Averages: these averages have been specifically
weighted in order to react more sensitively to recent price movements.
When using EMA charts, keep a close eye out for potential “crossovers.”
Moving Average Divergence (MACD): this trend-reliant momentum indicator
helps balance 26 periods and 12 period moving averages. Despite what you
may assume, the MACD can be used within any trading time-frame.

Bollinger Bands: these handy bands contain the vast majority of price
movements (about 95 percent). Use these bands to help determine when
breakouts and trend reversals are most likely to occur.
Relative Strength Index: The RSI is a momentum indicator that measures
levels of strength and resistance on a scale of 1 to 100. This can help limit
the possible risks attached to scalping.
These indicators will help you make your scalping strategy with better
confidence. As long as you are able to consistently follow our strategy and
carefully include stop losses, scalping is a trading strategy will develop
naturally.

Conclusion
Short-Term Trading Strategy could be a powerful 1-minute scalping system
as well and if you try in on the time frame let us know your results! We
could use the best scalping strategy indicator (volume) and have a whole
basket of strategies to use with it. The reason is that it can confirm a trend,
a can confirm a reversal, and it can show us when there is less interest
between buyers and sellers.
With this best scalping strategy, you will find that it's not only easy to scalp
but also will find a high win percentage strategy and a chance to grow your
account very quickly. If you are not a fan of scalping and enjoy swing
trading or day trading strategies make sure you check out the Swing
Trading strategies that will show you how to grab a minimum of 50 pips at a
time with a high probability of winning!