Setting the ideal trading interval
You can set the chart in the demo account to 1M, 5M, 15M, 30M, 1H, 4H and one day. You can choose between lines, bars and candles to display the price. Experienced scalpers choose the intervals 1M and/or 5M and opt for the display by candles. Candlesticks are considered the most informative method of price display on the international financial markets and experienced traders can use them to venture a glimpse into the immediate future.
A study of candlesticks and the resulting formations is an absolute prerequisite for success in Forex scalping. There are pages on the internet that describe the meaning of each candlestick and frequently occurring formations. Regular practice in a demo account is also the best way to success when studying candles.
You have to find out for yourself which time period seems ideal for scalping. Here the views of the experts are mixed. Some professionals think 1M is reasonable, while others prefer 5M. The majority of scalping professionals lean towards 5M, but test for yourself in the demo account.
Indispensable for quick reactions
After the time period and display form have been clarified, an important aid to scalping must be activated: the one-click trade.
Usually, an order in forex trading is placed in a callable mask. You fill in these fields
It takes some time before all the details are entered and the order can be placed. This type of order placement is not suitable for scalping. Brokers can react quickly to opportunities with the one-click trading function, available for the MT4 and MT5 platforms.
You set the position size in the upper left corner between the buy and sell price. A click on the corresponding button opens the trade at the current price. The loss limit is activated by clicking on the opening line and dragging it in the desired direction. Below the chart you can see that the position has been opened at the specified size with a stop loss.
Experienced scalping traders decide on profit-taking on their own and according to the respective situation.
In Forex scalping, traders live on volatility and must choose currency pairs whose prices are characterised by frequent fluctuations. All major currencies are suitable, whereby USD/EUR, USD/GBP and USD/JPY are particularly suitable in the European session.
With the pairs mentioned, around 70 pips per session are possible. As a beginner, however, you can only take advantage of some of the opportunities offered.
Scalping with exotic currency pairs does not make sense for professionals due to the lack of volatility. USD/EUR and USD/GBP are preferred while trading in https://forexexness.org/personal_area/. With both pairs, sufficient fluctuations are guaranteed even on calm trading days.
On days without data releases or other events, trading is comparatively calm. The price movement of a currency pair is determined by normal demand and the actions of a few large participants and is limited by an invisible channel.
Once demand has pushed the price to a certain level, large market participants let it fall back to the original level by selling. The development takes place over hours in a width of 5 to 10 pips. If you start your career as a scalper on a quiet day, you can calmly gain your first experience with real money at the end of the session and post 50 pips or more.
It is not advisable to start forex scalping immediately before the publication of relevant economic data (payrolls in the USA) or the announcement of key interest rate changes by the FED or ECB.
The reactions or deceptive manoeuvres of the major market participants are absolutely unpredictable. The price of the preferred currency pair is often driven 30 to 40 pips in one direction or the other within fractions of a second. In the worst case, the loss limit is broken and in the ideal case, an above-average profit is brought about, which, however, must be realised through lightning-fast reaction.
These events are the weekly or monthly highlights for experienced forex scalpers; for beginners, they can have a shocking effect if the positioning is unfavourable. Experts advise to make first scalping attempts on calm trading days and to participate in the highlights only after reaching a certain level of professionalism.