If you are involved in currency trading, you have possibly heard about currency exchange scalping. Whilst most currency exchange merchants are on the lookout for long term deals, foreign exchange scalpers look to get in and out of a deal quickly and make a quick profit.
Plenty of merchants will find themselves of falling into the trap of making deals strictly for the sake of making a trade. You totally can't do that as a scalper. You should wait for the right info to show a situation is ready for profit.
Scalpers have to be aware the market itself is in consolidation mode about 60-80% of the time.
What you'll see is the market will not move for hours at a time and then a move will be made.
Spotting key support and resistance levels so that prior highpoints and lowpoints can be spotted is an imperative talent for the scalper. However, the standard parameters employed in MACD may wish to be customised for currency exchange scalping. Spotting these scenarios will permit the foreign exchange scalper to do what all currency exchange merchants must do, sell on the rallies and buy the dips. The forex scalper will try to spot consolidation channels with a wide pip range ( 20-40 ) and have a long entry order when the price bottoms out and a short entry order when the price is at the ceiling. Developing these talents will sharpen your recognition power and let you make the best of your time in the currency exchange trading day when the market seems to not be going anywhere.
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