Are you into Forex scalping? If yes, you’re on the right page. The concept of forex scalping is fairly simple. It involves significant leverage which means even the smallest modifications or fluctuations in currency can leave you with reasonable moolah! The strategies leveraged in most forex scalping systems are typically automated. However, in some scenarios, they may be manual as well.
In automated systems, the trader is tasked with educating the software about the key indicators and signals. The trader also needs to set the right interpretation strategy for the said signals. Manual systems, on the other hand, are usually performed by a trader where they keep their screens on throughout the day, fishing for the appropriate signals and deciding whether they should purchase a certain stake or sell it in the first place.
According to many, automated scalping is certainly an excellent option, but it often separates the usual trading psychology you would otherwise expect. That is also one of the many reasons why traders prefer to manually trade through the right forex scalping systems. This allows them to enjoy the trading psychology, without putting much at stake.
But when it comes to choosing these platforms, how do you make your selection? What parameters should you consider in the first place? Well, these are some of the many things we will explore in the subsequent sections.
MI-M5 SCALPING SYSTEM
This is perhaps one of the best Forex scalping systems there is. If you are familiar with the concept of scalping, you would probably know that it usually involves plenty of leverage allowing you to make large profits from the minutest currency changes. And this is exactly what this system leverages. With the Mi-M5 scalping system, the trader needs to clearly assess all the signals understanding the right time to purchase and sell their stakes.
While scalping certainly comes with its fair share of risks, the Mi-M5 strategy will help you make the most of your profits as well as trades. In addition, it also allows you to manage your risks more conveniently. This applies regardless of the time you are holding and managing the trading position. And it works because the price is constantly monitored. The quick and real-time monitoring makes way for easy and hassle-free profits.
OSCILLATOR SCALPING SYSTEM FROM STOCHASTIC
This is yet another excellent forex scalping strategy where the stochastic oscillator operates the primary indicator of momentum. It is also widely leveraged in the many dimensions of forex trading to understand highlight the possible reversals in trend. The indicator works by assessing the momentum by drawing a direct comparison with the specific closing price at a time with the total trading range during a specific period.
The system is extremely simple and was first coined and developed by George C. Lane. This is one of the best scalping systems to identify and understand when a specific pair of currencies are being overpriced or over-purchased or even oversold. Because this system comes with a rich history dating back to more than five decades, a significant chunk of traders still consider it reliable and thus utilize it in their daily operations.
MACD SYSTEM
This is yet one of the best trends in forex scalping that helps you to understand and assess the relationship between multiple (at least two) fluctuating price averages.
The concept is fairly simple and requires you to do simple subtraction. Typically, you need to subtract the 26-day fluctuating average (also known as the EMA) from the 12-day fluctuating average. Following this, the unit will be nine and thus an EMA will be dotted for nine days right above the MACD. This will also play the main role in purchase and sales.
The system is extremely reliable and given its quick average calculation, it is widely lauded and sought after by traders across the globe.
MACD CCI SYSTEM
If you’re tired of making money by following all the tough strategies, then it’s time you tried the MACD CCI system. This is perhaps one of the easiest ways to boost your profits and the strategy is entirely dependant on the MACD as well as the CCI indicator that is being used in the first place. The ideal time window for this would be 15 minutes if you are either in London or the US, it could be around five minutes. Even though we shouldn’t typically consider any pair ideal, certain pairs are likely to perform better than the others. These would be the EURO and USD pair and the Great British Pound and the USD pair. Note that these pairs only work best when the spreads are fairly low/
One of the biggest highlights of this system is that it leverages the Commodity Channel Index. For the uninitiated, this is considered an excellent trading tool for anyone interested in cyclical purchases and sales. Almost all traders can leverage this tool to assess the accurate time window. In addition, they can also use it with multiple systems for a viable result.
M1 M5 SCALPING SYSTEM WITH FIBONACCI INDICATOR
This is yet another effective system backed by the Auto-Fibonacci Indicator. Unlike common indicators, this one works by comparing two mobile averages and then assessing their Relative Strength Index. As part of the process, it also adds the RSI which is also mobile. These new indicators can now accurately identify changes in the existing marketing trends.
You can see them in specific windows where the transformation begins from 0 and goes up 100. In addition to this, a Fibonacci Retracement is leveraged to technically assess the areas that require maximum support. For instance, it indicates when the price is likely to increase and when it is likely to decrease. The process is executed by developing a specific trendline amid specific extreme points of various denominations.
Either way, this is yet another equally effective system for quick and accurate Forex Scalping.
BOTTOM LINE
Now that you know everything about Forex scalping and the best scalping systems to try, check out the five options from our list, weigh out the pros and cons, and make your best judgment. Until then, happy scalping!