In scalping, the trader usually opens a position and the watches how the market behaves. The trader has to be there full time to watch the market. He or she is the take profit and the stop loss; he is the one to close the trade whether with a loss or profit. When the market moves to his favor he waits for some time and when it starts to move against him he closes the trade before he makes loss. However if a trade is entered and immediately the market moves against him or her then they wait to hoping that the market will reverse and move in their favor. But if it continues to move against his anticipation, then the trade is closed with a loss.
The scalping strategy is riskier and should be practiced by traders with a substantial amount of funds in their account so that in case of any misbehaving of the market they will not be stopped out and their market wiped. With large amounts of funds also you can trades using bigger lots; meaning that for every few number of pips that the market moves in your favor, you gain a large amount of profit. By this then you will be closing your orders just when the market moves by very small number of pips, which is very common in the market. Mostly the market will move up and down while forming a bar, line or candle depending on the one that you are using on your chart. Therefore with the larger lots, then you can be guaranteed of profit in any type of position you open.
However, one should keep in mind that also the larger lots mean larger losses in case the market move against you. So, if you enter with a large lot and your account cannot withstand large losses then you will be risking being called.
This is the reason as to why it is always important to have an indicator during scalping to help in guiding you when opening a position. The free scalping indicator is designed for such purposes.
Using the free scalping indicator
The indicator has a zero line at the center of its chart. This is the line that when crossed, tells whether to sell or buy.
The buying signal is when the zero line is crossed upwards and the color of the histogram becomes yellow. At this point the indicator will draw a vertical line to the chart too indicate where to buy.
The selling signal on the other hand arises when the zero line is crossed downwards and the color of the histogram becomes red. At this point the indicator will draw a vertical line to the chart too indicate where to sell.
After opening an order then you are advised to close it when a resistance or a support is reached.
The free scalping indicator should never be used during forex economic news as the news causes the market to react very fast and the indicator may not be effective.
Download Free Scalping Indicator