One of he best broker for scalping review

https://www.exness.com/a/403978

EXNESS is a fairly new entrant into the forex arena, and it offers some very interesting trading conditions. Though there is no actual relationship between the two (as far as we are aware), EXNESS and Alpari which is also of Russian origin, thrive in a jurisdiction where the rule of law is not always respected. While EXNESS is regulated by Russian law, this in itself is not a great comfort for foreign traders. No doubt EXNESS management, much like Alpari, is aware of this and therefore goes well above the call of duty to ensure that clients are treated fairly.
Beyond this uncertainty regarding regulation, it is difficult to find fault with any of the other aspects of trading with these guys. Small accounts can enjoy insanely high leverage of 1000:1 (yes, ONE THOUSAND to one), making it possible for smart traders to take advantage of the market without having all their capital tied up with their broker: you can keep more of you money in the bank where it's safe and earning interest, while a much smaller chunk is with your broker. Larger account holders ($10,000+) are still given decent maximum leverage of 100:1.
EXNESS licenses the almighty MT4 platform and offers unlimited demo accounts (you can "re-deposit" as much as you want in your demo account if you blow it).
Payment processing is also fast and efficient with many withdrawals processed automatically with no human intervention (depending on the payment method used). The only other beef I have is that fees are charged for every type of withdrawal. The fees are not big - usually 1% or less, but it does take away a bit from your profits.
Next on the list are spreads, which are kept extremely low, with EUR/USD starting at 0.7 pips on mini accounts and as low as 0.1 on accounts of $100,000+. Either way, these are some of the best spreads you'll find anywhere, and in spot forex there are no commissions to pay on top of this.
EXNESS also gives clients access to trading a huge number of instruments, from 150 forex pairs to CFDs from 11 different exchanges from New York to Jakarta, as well as Russian futures (FORTS) and NYMEX.
To top everything off, all traders are welcome to trade swap-free accounts, with NO EXTRA FEES. This is quite rare and can be a huge advantage in many longer-term strategies.

Comparing two brokers for scalping

https://www.exness.com/a/403978

Compare Category	eToro	EXNESS
Registered Business Name:	Tradonomi LLC	EXNESS Limited
Broker Headquarters:	Cyprus	St. Petersburg, Russia
Also has offices in:	None	none
Regulated By:	CySEC (Cyprus) NFA (0382918 eToro USA) NOT a CFTC-registered FCM	EXNESS is in full compliance with the Russian Federation Financial Legislation
In business since year:	2004	2008
Broker Capital as of 02-2009	Unknown	Unknown
Client Account Segregation:	Marfin Popular Bank, Cyprus	Yes
Collect Taxes on Earnings:	No	No
Prohibit clients from:	Yes	No
Deposit/Withdrawal methods:	Method Deposit Fee Withdrawal Fee Diners Club MasterCard Moneygram NETeller PayPal Visa Western Union Wire Transfer	Method Deposit Fee Withdrawal Fee c-Gold $0 1% CashU $0 3% Credit Card $0 0.5% Liberty Reserve $0 1% Moneybookers $0 1% Pecunix $0 1.5% Perfect Money $0 1% RBK Money $0 1% WebMoney $0 0.8% Wire Transfer $0 0.2% Yandex Money $0 1%
Main liquidity providers:	Unknown	Unknown

Scalping Psychology

From

https://www.exness.com/a/403978

 

I'd like to share a key piece of information with scalpers out there. First, the definition of scalping for this thread is 1 hour to 5 minute charts.

Winning breeds winning. Losing breeds losing. This is a statement that everyone has heard in one form or another but let's have a look at why. Here is an example of what is likely going through a trader's head during a winning trade, but following a losing trade.

Example 1:
First trade, lost $100.

Current trade, up $30...up $40...up $50...stalling....
Once your trade reaches that stick point, you feel excited at the probability of closing out a profitable trade. The problem is that you won't, because you think you should be patient and wait for it to reach $100 so you can wipe that nasty trade off your account for the day.

Current trade, back down to $40...back down to $30...back down to $20...back down to $10... hits the break even stop loss with a gain of $5.

You ended the trade with only $5.

Example 2:
First trade, won $100

Current trade, up $30...up $40....up $50...stalling....Close out!

You ended with a $50 profit. This is because you didn't need to make up for anything. You were happy just to add to the winning trade and it helped you to not hold on too long.


The moral of the story is that anything you can do to forget a losing trade is beneficial. The more it sinks into your mind, the worse you will trade and the more you will try to recoup that in greedy ways. You get what you get and you don't have a fit, ever heard that one as a kid? The market stalls for a minute and starts going back down, close out. Let yourself be one step closer to the overall goal.

It's been rehashed over and over, but I thought it could use another rehashing because I am a scalper on some trades and would like to see more people become comfortable with the idea that it can be done and done well. Psychologically, most people cannot handle it but just like anything in life, it can be practiced and mastered within reason.

What broker to choose for scalping?

• Minimum spread starting at 0.3 pips
• No hidden commissions
• Automatic withdrawal
• Execution in 0.1 second
• 134 currency pairs, CFDs on stocks and futures from the world leading exchanges
• Leverage up to 1:1000   

• https://www.exness.com/a/403978

Scalping strategy with stochastic

This is a trading technique based on scalping, which has two advantages: it is easy to understand and implement. Like all good trading strategies is very easy to visualize its entry signals to the market. This system employs five technical indicators that are known to any experienced trader in the market. To successfully implement this technique we use the following indicators using the configuration indicated:

• RSI (14).
• MACD ( 24, 52, 18).
• Stochastic Oscillator (10, 6, 6).
• Simple Moving Average of 20 periods.
• Weighted Moving Average of 10 periods.

Trading system description

	Description
Name	Scalping strategy with stochastic and other technical indicators
Introduction	This is a very simple scalping strategy which is recommended for traders interested in short-term trading. Althoug it use several technical indicators, its rules are very easy to follow.
Instruments	This trading system was designed to trade in the Forex market. However as a scalping strategy, it can be tested with other instruments, making any necessary changes depending on the market.
Indicators	A candlestick chart of 15 minutes, 5 minutes or 1 minuts. RSI (14). MACD ( 24, 52, 18). Stochastic Oscillator (10, 6, 6). Simple Moving Average of 20 periods. Weighted Moving Average of 10 periods.
Instructions	Buy Signals: The 10-period moving average crosses the 20 period moving average from below upwards. The stochastic is in an upward trend. MACD is above 0. The RSI has a value above 50. Once we open the long position we take profits and close the operation when the MACD reverse its trend Sell Signals: The 10-period moving average crosses the 20 period moving average from above downwards. The stochastic is in an downward trend. MACD is below 0. The RSI has a value below 50. Once we open the short position we take profits and close the operation when the MACD reverse its trend
Aditional Notes	It is important to look carefully the behavior of the stochastic oscillator because when it reaches the extreme levels 20 or 80, this could be signal of a probable change in market trend.  However, we shoul consider the other indicators before making a decision. This is a scalping trading technique so it is no recommended for larger time frames. As a scalping technique, in very important to avoid a big loss in a single trade. Remenber that this is not a strategy designed to obtain huge profits in each transaction.

FapTurbo – Short Term Scalping Strategy

FAPTURBO scalping strategy is not a traditional scalping method where the system is trying to play within the spread making hundreds of small trades in a minute. Such systems are very unstable and are not allowed by most brokers.
FAPTURBO scalper is a unique system that usually makes 1-5 trades a day aiming for small take profit value (from 6 to 10 pips) when the market is stable enough (often during nighttime in Europe).
By default scalper strategy does not make any trades during day time (GMT) and does not trade on Fridays, where the market is too unpredictable. (and of course no trades on weekends)
Scalper strategy is very safe because it has a low value stop loss limit and advanced algorithm that closes the trades according to inner indicators.
Stealth Mode protects you from cheating on the broker side. Using the mode the take profit and stop loss values are not displayed to broker.
Scalper strategy works on EURGPB, EURCHF, GBPCHF or USDCAD currency pairs on M15 timeframe only.
Now lets analyze the scalper strategy and find out the weak and strong points.
Strong points:

• Very safe. Scalper strategy has an inner fixed stop loss and sniper-accurate trading signals so the risk is very low and the drawdowns are extremely low.

• Extremely profitable. Despite the fact the take profit value is rather small, Scalper strategy is extremely profitable. You can literally double your deposit in a matter of weeks even trading safe lots.

The weak points are:

• Scalper strategy has very small take profit from 6 to 15 pips so it is very sensible to the spread size. If you broker gives you an unusually big spread (for example spread 8-15 for EurGbp or more instead of normal 2-4) then scalper strategy will have a hard time trading it. It will miss a lot of trade or will not trade at all. Check your broker for the spread size!

• Scalper strategy does not work well on crazy market conditions. When the currency pair has an unusually strong trend or very high volatility, it is recommended to avoid trading on such days. (Although FapTurbo tried its best to filter out such days automatically but I still do not recommend to turn it on during high volatility days.)

Forex Scalping Strategies #1 – “The Spike Scalping System” Written by Kato forex scalping strategies

I’ve got the first of the Forex Scalping Strategies here for you – elegant in its simplicity yet built on the solid foundations of professional trading
And if you’ve been around Forex trading for any length of time I’m probably a lot like you:
I know exactly what it’s like to be jumping around from system to system, trying to find the “magic bullet” that will bring you guaranteed trading success…
Tearing your hair out with frustration at trading software that just doesn’t bring the results you need and wasting hours searching for a “secret” winning combination of indicators…
And I want to save you the time, expense and cruel disappointment of falling into this trap and get you on your way to scalping Forex profitably as quickly as possible – maybe as soon as today.
There are many ways of scalping Forex but one of the most flexible, most instinctive and most logical ways is by focusing on the “Price Action” of the market (when you use this approach you’ll be picking up the clues that the market drops and you’ll know exactly what you need to do next)
So here’s your way to find “Keystone” scalping entry triggers and pull off jaw-dropping trades just by eyeballing the chart and using your new price-action reading skills… a way of trading with tiny stop-losses, stripping your exposure down to brass tacks and blasting your hit-rate through the roof…
And here’s your way to find consistent, repeating Forex scalping opportunities even if you’re squeezing in just an hour or two around your other daily commitments.

Why Spike Scalping Gives You Easy, Reliable And Profitable Set-Ups Every Day
The Spike Scalping System was revealed to me by a grizzled veteren pit trader in the T-Bond futures at the Chicago Board Of Trade (he used his own hand-sketched chart on the back of an order card to keep track of where the scalping triggers were setting up)
But the strategy works incredibly well in the heavily traded Forex markets because both the Currencies(Forex) and the Treasuries (Bonds)  have similar market “personalities”…
…they’re both driven by the Fundamental factors of worldwide economic “dramas”  (rather than by pure speculation) and the huge trading volume being pumped into each gives you very robust conditions for scalping:
You’ll be getting clean, accurate and easy to manage set-ups – perfect for the “lone-wolf” Forex scalper…
And the beauty of this method is how it ramps up your probability of scoring wins by forcing you to scalp inline with the short-term trend (and you’ll be doing so in the strategic, calculating way of a professional trader).

Understanding the Methods of Forex Scalping Techniques

Traders can avail a great opportunity to earn money with minimum risk employing Forex Scalping technique. They can also gain significant profit by trading in different currency exchange. Investors can work on forecasting their insight knowledge in accordance to the currency movements. With this technique traders can earn money on speculations and generate revenue within a few seconds as trades open and close within seconds.
Good scalpers always make use of different scalping strategies to earn more profit. They can earn good fortune through small pips on each deal per day. An investor should be prepared for fast changes in the price as this technique is related to very short term trading. Usually a trade lasts for some seconds to a few hours. Scalpers bid with the help of scalping indicators, which provide technical details on scalping.
For a better productive trading, traders should use their best knowledge and trading skills. They can gain knowledge through news and web browsing. There are many websites available to guide the traders on the best trading techniques. There are loads of opportunities to generate substantial revenue by scalping according to the news. Traders can use both manual and automated tools for trading. A quick trading can be done using an automated tool.
Normally, short- term investors use an automated system tool since this method is very dynamic and effective. Moreover, one can make good profits through this method.
Before you scalp, it is essential to understand the technical, analytical and fundamental things of this technique. Reviews and news releases are very important to understand trading. Furthermore, it is very important to implement this knowledge with your own trading choice. A quick response is necessarily be involved in intraday trading because it involves very fast exchange rates and rapid trading. Trading can be complicated unless you know when to trade and how to trade. By acquiring sufficient knowledge and skills you can gain certainty and good trading decisions.
One can gain sufficient knowledge on this technique through many online sites. There are some instructions that can be followed for a good forex scalping. A series of quick scalping can help you gain considerable profit. A fake money and a practice account may help you learn trading to a great extend. You can expect to lose in a few trades, which can irritate you and tempt you for risky trading. Always stay focused and monitor the exchange rates in the market closely since the changes occur instantaneously.

Forex Scalping Strategies - Basic

What is a forex scalping strategy and how is it different from a standard forex  strategy? There is no precise definition of the forex scalping strategy; in our opinion, there cannot be any precise definition at all. From broker’s (dealer’s) point of view, a forex scalping strategy is a strategy with profit level less than 10 pips and time of holding a position less than 1 minute.

The majority of scalping strategies work at definite time – time of quiet market for the given currency pair. For example, between the American and the Asian sessions for the pair eurgbp. Many forex scalping strategies show 100% monthly profit and more on back tests. It should be noted: if you open an account of $1000 with leverage 1:500 at a dealing desk broker and are going to double your capital, there is 99.9% probability you won’t succeed. 0.1% is left for new brokerage companies with inexperienced dealing department. Broker scans its clients and finds the ones, who enter the market on short periods of time, opens positions 10-20% higher than deposit and takes profit of 10 pips and less. What will the broker do next? He will increase your spread and execution time, or even throw in a non-market quite to activate your stop loss.

What ist Forex Scalping?

The forex market is the most liquid of today’s exchange, trading in excess of 1.6 trillion dollars daily. This is roughly greater than 5 times the daily trading volume of the U.S. Treasury Bond Market, and 160 times the average daily volume of the U.S. Stock Market. This extreme liquidity gives forex traders an edge in the art of lightning fast execution and the quick trade method referred to as “scalping”. 

Forex scalping is the art of using high leverage and a large number of short term trades to steadily increase an account. Usually, only 1 to 5 pips are targeted for each trade.  This type of trading appeals greatly to day traders and those looking to minimize the risk involved in trading currencies.  Next to money management, “risk control” is the single most important trait to a surviving (and thriving) currency trader. The small amount of time that is spent in the market limits much of the risk in exposure in comparison to a longer term system. Also, the freedom involved in a speedy forex scalping system in such a liquid market is a “magnet” that drives many traders from other markets to try their hand in currency. A disciplined and steady scalper could seamlessly double or triple an account, and spend only a fraction of the time in the market as a common day trader. 

Though forex scalping may seem like a preverbal “holy grail” at first glance, there are still many unseen hurdles that surround the controversial method of trading. If you do wish to add scalping to your trading toolbox, it is extremely important to pick a broker who can support a scalpers’ system. You will quickly find that many brokers do not allow scalp trading, as the method of quickly entering and exiting trades may actually cause the broker to lose money at the dealing desk. Forex scalping also does not give the broker a means to trade against their clients.  Out of the hundreds of online forex brokers, only a handful support (and sometimes encourage) scalping. 

Effective forex scalping strategies take advantage of extremely slight price fluctuations (sometimes only 1-3 pips) many times in order to steadily build an account. Because of the smaller number of pips gained per trade, larger than normal leverages play a key role in a successful forex scalping strategy.  By leveraging much more than a standard day trader in a liquid environment, a very skilled scalp trader is able to make just as much money as the day trader in a shorter period of time. However, this is an obvious double-edged sword.  The market can just as easily move against you on a high leverage, which could produce substantial blows to your account. 

Also, it is important to take into consideration the physical and mental speed of a trader who will only stay in the market for seconds to minutes. Executing a scalping strategy by hand can be extremely difficult considering the quick amount of time you must be in and out of the market for your strategy to be affective  Many successful forex scalping strategies are built to be automated; the rules to the system are coded into a trading platform to automatically perform scalp trades around the clock. Though it is completely possible to trade a forex scalping strategy manually, the majority of today’s traders would agree that automating the process based on a set of rules would be the best way to ensure speed and reliability.  When choosing a platform to automate your scalp strategy, it is extremely important to stick with those platforms that allow the execution of your system on every tick (such as MetaTrader 4). This ensures that your entrances and exits will be on a per-tick basis, and will give you a much higher probable rate of success than those platforms who will execute your code more periodically. 

Forex scalping can be a good method of growing a managed forex account quickly, but should not be looked at as the “holy grail” of trading. Most brokers do not support scalping, and a consistently profitable forex scalping strategy can be very difficult to engineer. However, if much time and effort is spent in system optimization and setting up a good relationship with a scalp supporting broker, the benefits could be well worth the time spent.

Useful tips for scalping

There are a number of options that any investor has when trying to decide where to invest his/her money. Forex (i.e. the foreign exchange market) is one of these choices. Just as millions of travelers do every year when they go abroad, Forex traders are merely exchanging one form of currency for another. But as most people already know, one dollar of U.S. currency is not equal to one Euro - there is always a conversion rate involved in any exchange between currencies.

Just as with stock prices, the exchange rate between currencies is constantly changing and reacting to market conditions. One Euro might be worth 1.300 USD today, but only 1.2518 USD the following day. When dealing with currency exchanges, the two currencies being traded are known as the currency pair. The base currency is the first in the currency pair and it is used when the account is set up (USD/Euro). So, if an investor was looking at the exchange rate of 1.312 USD when looking at the base pair of the Dollar/Euro - this means that it takes 1.312 USD to buy one Euro and that the dollar was used to set up this transaction.

Forex traders are always trying to anticipate the movement of exchange rates and capitalize upon those predictions. As with stocks, Forex investors can profit whenever they correctly predict moves in the exchange rates - whether they move up or down. Scalping is one of several strategies that have evolved in Forex trading.

At its simplest, scalping involves short-term movements in the exchange rates. In other words, Forex traders who use the scalping strategy are not in it for the long haul - in fact, this strategy may only involve investments that last a few hours - or even minutes. Scalpers pay very special attention to market indicators that specifically affect Forex rates.

Exchange rates tend to fluctuate based upon economic and political news events - on both the national and international levels. There are several key indicators that scalpers (or any Forex trader) pay special attention to before investing and many of them involve government statistics, including the Gross Domestic Product (GDP) rate, unemployment figures, trade balance reports, inflation, and interest rate announcements.

The reason that most currency markets rely so heavily upon government statistics is because they are both accurate and reliable indicators of economic strength or weakness. The statistics are compiled and analyzed using very complex formulas that are nearly impossible to manipulate. These government figures are both transparent and generally available to everyone at the same time - so there is a general sense that the currency market is an even playing field for both large and small investors. These statistics are generally released around the same time every month (with the exception of figures that are released quarterly, like the GDP) and distributed by all the major players, such as Reuters, Bloomberg, CNBC, etc.

However, a good

or bad report on unemployment will not necessarily mean a change in currency exchange rates. For instance, assume an investor is interested in the exchange rate between the USD and the Euro. If the quarterly GDP figures showed a solid 5% increase for the U.S. economy but a lackluster 2% increase for the euro zone, an inexperienced Forex trader might assume that the dollar would rise against the Euro.

Unfortunately, it is not that simple because the figures themselves are not truly what move the currency exchange rates. In reality, it is the perception and expectations of the market that will move the rates. So, even though the U.S. economy grew faster than the euro zone, the dollar may still lose ground to the Euro on the exchange market. The U.S. economy may have been expected to grow at 7.5% while the euro zone had very low expectations and was only expected to expand at a 1% rate. Thus, the U.S. economy grew at about half the rate expected while the euro zone grew at double the anticipated amount - thus, it is more likely that the dollar would lose ground to the Euro in such a situation.

Using the example above, a Forex trader using the scalping strategy would be eagerly awaiting the GDP figures to be released by the respective governments. When they are released, the investor may indeed anticipate that the dollar would lose ground against the Euro. Because smaller investors can organize and react quickly to economic data, they actually have a slight advantage over the larger investors and hedge funds - especially when using the scalping strategy.

The basic premise of any Forex investment is to purchase one currency while simultaneously selling another. In truth, the GDP announcement may only cause a slight adjustment to the exchange rate between the USD and the Euro - and yet the size and liquidity of the currency market may still make the transaction profitable if the movement of the exchange rate can be accurately predicted.

The currency market is the most fluid and liquid in the world with roughly $2 trillion dollars changing hands each day. While the standard size of a transaction in options is 100 shares of the underlying stock or investment, the typical size (standard lot) of a Forex trade is 100,000 units of currency. Therefore, for the scalper who predicted that the dollar would lose ground as a result of the economic data released by the government earlier in the day, the movement of the Euro to 1.312 from 1.260 could be quite profitable. While the position only moved .052, the fact that the standard lot is 100,000 units of currency means that the gross profit would be $5200!

It is quite possible that the scalper could buy in earlier than the larger investors

and thus make a bigger profit than when the market finished reacting to the economic data released earlier in the day. But, would a scalper necessarily make all $5200 of the potential gross profit? Probably not, because the investor will typically have trigger points already in mind when making an investment.

Investments using the scalping strategy are very short term and may indeed only be a few hours in duration. Investors need to already have targets and stops in mind before investing in Forex if they intend to use the scalping strategy. After all, it is impractical to follow the exchange rates on a minute-by-minute basis for very long. The target is the projected price level that the currency will reach (verses the other currency in the pair) as a result of the economic or political data recently released. Stops are determined by the investor and they are specific points within the target range. When prices reach these stops, the stop order becomes a market order and the currency is unloaded - with the investor presumably making a "reasonable" profit for their troubles. Most successful scalpers use technical analysis (historical data) to determine the stop points for the currency exchanges.

Technical breakouts

Pattern Scalping Strategy
We can define technical breakouts as the cases in which a range breaks down without any previous or obvious reason. In the case of the news released traders know that they are under the possible effects of an unexpected argue that could affect to the trade market the whole day so they are prepared for it;  while with a technical breakout anyone could be catch unaware.
Technical breakouts are almost impossible to predict and sometimes also almost impossible to explain.
Ought to their unusual and sudden apparition scalpers should be much more conservative when scalping this pattern than in the case of scalping the news released. The main risk is to find a market that is up and suddenly goes down without warning; to avoid the chaos is recommend to trade with small sizes and stop-loss orders.
The key issue is to identify the phase of the range pattern- that could be up or down- and trade it in short periods of time applying the general rules of technical trading.

Scalping the flag pattern

The flag pattern in forex scalping is understood as the limits of an upper or lower range pattern that could be trade to exploit benefits without taking big risks. They usually last for 30 or 60 minutes.

With this kind of pattern the trade strategies can be applied without the risk of big losses because the volatility is almost inexistent. There are no great expectations of big gains and the activity could be quiet unexciting.
In the graphic we can observe three flags registered in the USD/CHF pair; the first and the third are perfect to trade because they consist of a simple range without change of directionality. To exploit a flag it’s important to identify the moment when the price rises and becomes closer to the upper part of the flag, when the situation reverses is the moment to issue the sell orders. In this moment we can get profit of the established range pattern by entering small and quick different sell orders.
The same happens when the price falls and becomes closer to the lower limit of the flag, traders should wait until it begins to rise again.
Scalping the market trough the flags is an easy and secure technique but traders should be careful of not to be caught in the breakout when the flag pattern dissipates and the main trend appears.

The importance of the technical analysis while scalping the Forex market

Technical analysis is a method to predict the future movements of the market by studding what happened in the past using charts. It is concerned with what has actually happened in the market rather than what should happen. The main tool is to create charts with data from the past price of the instruments and the volume of trading.
The technical analysis is focused in three primary premises:

• It is concerned only with price movements and doesn’t care about the reason of the changes.
• Prices move in trends. The technical analysis is focused on the common patterns of the market behavior trough which future results can be predicted.
• History repeats itself. Forex chart patterns have been identified and analyzed for over 100 years leaving the conclusion that patterns which worked well in the past will also work in the future.

The main advantages of the technical analysis are that it can be used to project movements of any asset available for trade, its capacity to focus in the present and future, the price movements as the most important element and the possibility to detect the end of a trend before it becomes real in the market.
Instead of it, the main disadvantages are the problem of the Dow approach (as prices are not random) and the critics about the late appearance of the trend changes.

A brief history of Forex market

To analyze the history of the foreign exchange market we have to travel from the days of the gold exchange to nowadays through the Bretton-Woods Agreement.
The Bretton-Woods Agreement was established in 1944 and pretended to protect the national currencies against the dollar fixed rate of USD 35 per ounce of gold. Bretton Woods was aimed at establishing international first monetary stability avoiding the speculation in foreign currencies.
The weakness of the gold standard system was its facility to create boom-bust economies. A strengthened economy would import a good deal ending with all the gold reserves required to support its currency; as a result, the money supply would diminish, interest rate would increase and the economic activity would slow down until the point of recession.
The Bretton-Woods Agrement was established just at the end of the World War II to regulate the international Forex market. All the countries involved agreed to maintain their currency value within a narrow margin against the dollar and an equivalent rate of gold. With the agreement, the dollar gained a premium position as a reference currency dominating the Europe and USA markets.
In 1971 the dollar ceased to be exchangeable for gold so the agreement was scrapped. Throughout the 1970s the supply and demand forces were in control of the currencies which began to move freely across borders. Prices were floated daily, with volumes, speed and price volatility all increasing while new financial tools as the market deregulation or trade liberalization emerged.
In 1980, the boom of the computer technology began, increasing the transactions in foreign markets. The capital movements through Asia, Europe and America increased from almost 70 billion dollar a day in the 1980s to more than 2 trillion dollar at the beginning of 2000.
With the rapid development of the Euro/Dollar market (we can define it as US dollars deposited in banks outside the US) the Forex trade market experienced an injection of speediness.  Similarly, Euro markets are those where currencies are deposited outside their country of origin. Both markets are in a leading position nowadays in the Forex trade market.

Forex scalping indicators

There are some forex scalping indicators that can help traders to create an edge over the market by performing different functions to ensure a better winning possibility. Despite of that, the use of these indicators doesn’t guarantee secure profits as trading often depends on probability.
Among the main indicators we can highlight:

• Parabolic SAR indicator: this indicator is a tool that can give us a trade entry or exit signal. The important thing is to see the PSAR flipping to the side of our favor when we would like to begin trading and exit whenever we see the PSAR flipping to the side against our position.

• Stochastic indicator: the main aim of this indicator is to help us to prevent low winning probability trade, as there is no point in entering a long position when the market is already overbought. The stochastic indicator helps us to improve our trading accuracy by mapping out the current situation of the market. When the stochastic hits the overbought or oversold zone and reverse, the price will usually retrace and this is the best time for you to scalp the movement. By using this indicator we will be able to predict the retracement of the market.

• Pivot Point: support and resistance are the most important terms for a scalper. When the price hits a support or resistance  it has the possibility of been repelled, and this is what a scalper is looking for. The daily pivot point can help us to identify major support and resistance. The pivot point is so powerful because it is usually used by those commercial traders and thus has more significant than other levels. When we see the price getting closer to the pivot levels is time to take a look at the stochastic and PSAR for an entry chance.

Best forex scalping strategies

From https://www.exness.com/a/403978
One of the best practices of scalping consists on the use of Fibonacci levels, a useful tool that will help us to determinate the trade direction while scalping. These levels are especially useful to analyze the market trends without caring about the size of sudden fluctuations or the lack of clarify in the possible destinations of the price.
The aim in using this strategy consists on identify the levels where the price could be rebound. For drawing the Fibonacci extension is important to identify the beginning and the end of the price movement that we want to extend.
As an example, in the five minute chart of the USD/CHF pair we can identify a sudden and sharp movement, we draw its extension after the first red bar; drawing the extension in the indicated area we will notice the 61.8, 100 and 161.8 extensions of the first movement.
Examining the chart above, we can see not only the fact that the price rebounded several times between the extension levels of the indicator, but also we can realize that these levels strongly act pulling the price towards themselves. The rest of the extension level supports the price preventing it to “fall through” twice.
The other two levels similarly created performance bars for the trend which, once broken, created further momentum for the trend. It’s not recommend to trade against the trend because of the risk of sudden reversals. Applying the Fibonacci levels we will identify the general direction of the trend and even if we register some losses, our gains will justify the trading activity.
In this example we scalp the market buying  at the red arrows shown on the chart; if we detect that the price is returning to the resistance that the level indicate us, we should stop trading until the market shows some clarity. The secret is scalping between the extension levels as long as the trend continue intact.
With the Fibonacci extension level through a reasonable degree of accuracy we can guess the main momentum of the price action and reach incredible profits.

Different exchange rate systems

We have 4 different types of exchange rate systems where an exchange can operate.
1. Fully fixed exchange rates
In these systems, the government or the central bank intervenes in the currency market to maintain the exchange rate in a fixed quantity. This kind of systems doesn’t allow fluctuations from their central rate.
2. Semi fixed exchange rates
These systems are characterized for permitting a little movement in a determinate range. The exchange rate is the dominant target of the economic policy-making and the interest rates are established to meet the target exchange rate.
The advantage of both kinds of fixed rates is the less speculative activity of the market, providing a great certainty for exporters and importers.

3. Free floating exchange rates
In these cases, the value of the currency depends on the foreign exchange market’s demand and supply. Ought to that, the trade and the capital flows are the main elements that affect the exchange rate.
The main characteristic of these systems is the exchange rates’ possibility of moving according to the market force, always without the intervention of the government or economical institutions.  The currency can experiment a change on its value due to the changes in the supply and demand.
These systems are not very common as the governments usually try to control and manage the value of their currencies.
4. Managed floating exchange rates
These systems are the preferred for most of the countries, where the value of the currency is determinate by the market forces and where the government can intervene if needed.
In the case of the floating exchange rates we can highlight two different advantages, the first one is the fact that the large balance o payment deficit that some countries could experimented can be solved by an automatic adjustment provided by the fluctuations in the exchange rate. The second advantage is the possibility of the government to flexibly determine the interest rates.

Useful charts while scalping the Forex market

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The charts are one of the main tools in Forex trading; they are based on the market action that involves the prices. We can find several kinds of charts that can help us to identify behavior patterns, to create forecast and to analyze the market’s conditions.
The charts can be used in both kinds of analysis, the fundamental and the technical ones. While the technical analyses are focused on the “micro” movements, the fundamental ones are focused on the “macro” events (or external factors) that affect the trend of the market.
Among the main types of charts we can distinguish:
The line chart: is the simplest one, in each time unit shows the closing rates creating a homogeneous line. Although it doesn’t show what happened during the time unit selected by the users, is such a good tool for helping to set support and resistance levels.
Point and figure charts: these charts are focused on the price without time specifications. Instead of showing a linear representation of time they show the different trends in the price. This kind of chart is especially useful to filter out non-significant price movements helping the trader to determine the critical support and resistance levels.

Bar chart: this type of chart shows in each time unit that we select three different rates for each one. The common rates shown by bar charts are the high, the low and the closing, but we can also find charts that show one more rate, the opening of the period of time.Candlestick chart: this type of charts comes from Japan. The units represented are similar as the ones in the bar charts, they show the prices at their opening, high, low and closing rates in candles form for each unit selected. We can find two kinds of candles, the transparent ones that show increase and the dark or full ones, which show decrease. The length of the candle’s body represents the range between the opening and the closing, while the whole candle (top and bottom included) show the whole range of trading prices for the selected time unit.

Inviduals scalping in the Forex Market

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There are several individuals that act in the Forex market, the traders are usually divided into two groups:
The first one in composed by the hedgers account that represent less than the 5%, consists on business and other kind of organizations competing in the international trade. Their main aim is to diminish or neutralize the currency fluctuations’ impact by using different market tools.
The other percentage (95%) is composed by the speculators account, the private companies and individuals, the public organizations and banks. Their purpose is to get profit from the fluctuations in the exchange of currencies, ought to that the Forex market can enjoy its liquidity.
Talking about the individuals acting in the Forex market we also have to mention the market makers. Almost all the deals are made by traders (mention above) and market makers in conjunction.
The market makers are the counter part to the clients, they don’t operate as trustee intermediaries. They perform their clients’ hedging according to their policy that covers different guidelines and agreements. The commonest examples are banks or trading platforms, they don’t represent the client as an intermediary, but use their money for buying and selling financial instruments. They don’t have a fluid relationship with their clients and they usually manage all the positions as a whole, detecting interesting movements and acting for all their clients at the same time.

Midnight setup strategy for Forex Scalping

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If you are awake and available for trading the Forex Market at midnight this strategy can makes you win. Pay attention to the following details!
This strategy is based in the principle that it’s very difficult to find same size candles for 2 consecutive days on a daily chart. The main fact that it’s going to influence us from this conclusion is that prices are moving steady either up or down without producing “noise”, an element always present on smaller time frames.
Entry
The entrance hour should be at the 00:00 according to your local time or according to your trading platform. In this moment, the daily candle is newly formed and you will be able to find the highest and lowest price of the day for the previous daily bar.
If the price bar (including shadows) is less than 90 pips long we recommend not to open new trades the next day (this is a requirement for GBP/USD pair, but can be changed for other currency pairs).
If you suddenly discover that the previous day bar becomes an Inside bar you should be careful with entries the following day. While an Inside bar candle gives a good breakout opportunity the following day, it can also be a dual whipsaw breakout, the most unwanted scenario for Forex Scalping.
If anyways you decide to trade the next day you will be depending on the candle of the day before so, establish a Buy Stop order at the top (the highest price +5 pips) and a Sell stop order at the bottom (-5 pips). Over the time you will be able to adjust these additional pips s and stops depending on the currency pair you are trading with.
Exit
You should exit once that one of the orders is filled. At midnight with the new daily candle open, adjust your orders and stops according to the previous daily candle, following the same routine; keep on scalping the market until you raise +100 pips, then you can close current and enjoy the benefits of a well done job because your profits will arrive soon.
You should quickly close your current open positions (with either profit or loss) in two different cases: first of all if a daily candle becomes a Doji candle (or it’s about to become). The second occasion in which you should close your trades is if you met a Shooting Star candlestick in an uptrend or a Hammer candlestick in a downtrend.

Study and train for best results

Know you best currency pair, critical for forex scalping

Depending on your particular needs, you must find a currency pair, such as the EUR/USD or EUR/JPY to trade regularly. You must “get married” to your chosen pair for your everyday currency trading. Of course, you can trade any of the major currency pairs: the EUR/USD, GBP/USD, USD/JPY and the USD/CHF, or Euro/Dollar, British Pound (Sterling or Cable), Dollay/Yen, and Dollar/Swiss Franc (Swissy), respectively.
Of course, you can also trade any of the “currency crosses” such as EUR/JPY or GBP/JPY or even the EUR/CHF (and many more). Or, there are also some of the bigger “minor pairs” such as the AUD/USD, USD/CAD, NZD/USD, but these often have a larger spread and sometimes even higher commissions and fees.
Then, it is critical to determine how you want to trade forex. Each individual trader has a certain amount of risk they are comfortable trading, and this will, in part, also cause one to trade a particular forex trading technique. So does the amount of money you have available to trade. Even your “thinking process” and your basic psychological make-up will cause you to be a successful trader, or not. It all is a matter of “putting it all together” in a way that works for you.
With few exceptions, we ALL prefer to have the following conditions in each of our trades:

• low risk
• limited exposure
• high probability of success
• almost no “research” and “drawing lines”
• easy to identify entries and exits
• consistently profitable
• no stress

These things CAN be put together into a powerful forex trading method. But, it can take years to do it on your own. And, that’s why it is so important that you leverage your successful trading system by using work and research other people have already proven.
Some people will naturally gravitate toward certain styles that others will find repulsive. And, sometimes it will surprise you. You may find that a forex technique that you thought was “high risk” or “low probability” is actually far superior to other methods. In fact, one of the reasons most traders fail (and continue to fail) is their insistance on a particular style or method, even though it continues to produce bad results for them.
The answer? Stop doing the things that aren’t working…and do The Right Thing. Then again, one has to be careful that they aren’t constantantly “seeking the Holy Grail of Trading”. It doesn’t exist. You MUST balance your personality, the time of day you can trade, how much money you have to trade, and so on, to make forex trading work for you.
Perhaps most important is that you MUST *give it time*. You must ‘stick with it” long enough to prove that your particular forex trading system really works, or doesn’t. And, that means you must pay particular attention to money management and risk control.
Experience will certainly teach you these things. It can be very expensively acquired experience. So, it’s best to learn forex from a professional forex trader, use the efforts they have done to become successful, such as the forex indicators and techniques for money mangement, risk control, entries and exits, etc. And, hopefully you can find a person who truly cares about you and can provide the “boost” you need to give you the insight into consistently profitable forex scalping and can share a powerful trading system related to your scalping forex training. When working with you one-on-one, they can often help you see things about yourself that you won’t be able to determine on your own (or at least not “soon enough” before you run out of money). So, find a mentor, coach and teacher who will open your eyes to forex trading.
Now, here is a surprise. Many people seem to be afraid of scalping forex, when, in fact, this is often the best overall trading system for MANY people. You may have been frighted by the stories you have heard about people trying to scalp the forex market.
Well, you need to dismiss your fears. Forex scalpling can be the absolute best fit for MOST traders. But, of course, you must know the right forex scalping system and techinques.
You can be successful with any trading system, as long as it fits all of the needs that you have (and many that you may not even be aware that you have. Make sure that fully explore several methods of forex trading…and please…really search for a good forex scalping system that works…like Logical Forex Trading System and Forex Scalping System.

Intensive guide how to scalp forex market

Forex scalping is a popular method involving the quick opening and liquidation of positions. The term “quick” is imprecise, but it is generally meant to define a timeframe of about 3-5 minutes at most, while most scalpers will maintain their positions for as little as one minute.
The popularity of scalping is born of its perceived safety as a trading style. Many traders argue that since scalpers maintain their positions for a brief time period in comparison to regular traders, market exposure of a scalper is much shorter than that of a trend follower, or even a day trader, and consequently, the risk of large losses resulting from strong market moves is smaller. Indeed, it is possible to claim that the typical scalper cares only about the bid-ask spread, while concepts like trend, or range are not very significant to him. Although scalpers need ignore these market phenomena, they are under no obligation to trade them, because they concern themselves only with the brief periods of volatility created by them.
Forex scalping is not a suitable strategy for every type of trader. The returns generated in each position opened by the scalper is usually small; but great profits are made as gains from each closed small position are combined. Scalpers do not like to take large risks, which means that they are willing to forgo great profit opportunities in return for the safety of small, but frequent gains. Consequently, the scalper needs to be a patient, diligent individual who is willing to wait as the fruits of his labors translate to great profits over time. An impulsive, excited character who seeks instant gratification and aims to “make it big” with each consecutive trade is unlikely to achieve anything but frustration while using this strategy.
Scalping also demands a lot more attention from the trader in comparison to other styles such as swing-trading, or trend following. A typical scalper will open and close tens, and in some cases, more than a hundred positions in an ordinary trading day, and since none of the positions can be allowed to suffer great losses (so that we can protect the bottom line), the scalper cannot afford to be careful about some, and negligent about some of his positions. It may appear to be a formidable task at first sight, but scalping can be an involving, even fun trading style once the trader is comfortable with his practices and habits. Still, it is clear that attentiveness and strong concentration skills are necessary for the successful forex scalper. One does not need to be born equipped with such talents, but practice and commitment to achieve them are indispensable if a trader has any serious intention of becoming a real scalper.
Scalping can be demanding, and time-consuming for those who are not full-time traders. Many of us pursue trading merely as an additional income source, and would not like to dedicate five six hours every day to the practice. In order to deal with this problem, automated trading systems have been developed, and they are being sold with rather incredible claims all over the web. We do not advise our readers to waste their time trying to make such strategies work for them; at best you will lose some money while having some lessons about not trusting anyone’s word so easily. However, if you design your own automated systems for trading (with some guidance from seasoned experts and self-education through practice) it may be that you shorten the time which must be dedicated to trading while still being able to use scalping techniques. And an automated forex scalping technique does not need to be fully automatic; you may hand over the routine and systematic tasks such as stop-loss and take-profit orders to the automated system, while assuming the analytical side of the task yourself. This approach, to be sure, is not for everyone, but it is certainly a worthy option.
Finally, scalpers should always keep the importance of consistency in trade sizes while using their favored method. Using erratic trade sizes while scalping is the safest way to ensure that you will have a wiped-out forex account in no time, unless you stop practicing scalping before the inevitable end. . Scalping is based on the principle that profitable trades will cover the losses of failing ones in due time, but if you pick position sizes randomly, the rules of probability dictate that sooner or later an oversized, leveraged loss will crash all the hard work of a whole day, if not longer. Thus, the scalper must make sure that he pursues a predefined strategy with attention, patience and consistent trade sizes. This is just the beginning, of course, but without a good beginning we would diminish our odds of success, or at least reduce our profit potential.
Now let’s take a look at the contents of this article where forex scalping is discussed with all its details, advantages and disadvantages. Our suggestion is that you peruse all of this article and absorb all the information that can benefit you. But if you think that you’re already familiar with some of the material, to shorten your route, we present the table of contents of this article.

Contents

1. How scalpers make money: Here we will take a look at the logic behind scalping, and we’ll discuss the best conditions and necessary adjustments which must be made by a scalper for profitable trading.
2. Choosing the right broker for scalping: Not every broker is accommodative to scalping. Sometimes this is the stated policy of the firm, at other times the broker creates the conditions which make successful scalping impossible. It is important that the novice scalper know what to look for in the broker before opening his account, and here we’ll try to enlighten you on these important points.
3. Best currencies for Scalping: There are currency pairs where scalping is easy and lucrative, and there are others where we advise strongly against the use of this strategy. In this part we’ll discuss this important subject in detail and give you usable hints for your trades.
4. Best times for Scalping: There is an ongoing debate about the best times for successful scalping in the forex market. We’ll present the various opinions, and then offer our own conclusion.
5. Strategies in Scalping: Strategies in scalping need not differ substantially from other short-term methods. On the other hand, there are particular price patterns and configurations where scalping is more profitable. We’ll examine and study them in depth in this section.
   a. Range Scalping: Some traders consider ranging markets better suited for scalping strategies. Here we’ll examine why, and how to scalp under such conditions.
   b. Breakout Scalping: We’ll examine news breakouts, and technical breakouts separately and discuss suitable scalping strategies for both.
   c. Trend Scalping: Here we’ll take a general look at forex scalping in trending markets.
6. Trend Following while Scalping: Trends are volatile, and many scalpers choose to trade them like a trend follower, while minimizing the trade lifetime in order to control market risk. In this part we’ll examine the usage of Fibonacci extension levels for scalping trends.
7. Disadvantages and Criticism of Scalping: Scalping is not for everyone, and even seasoned scalpers and those committed to the style would do well to keep in mind some of the dangers and disadvantages involved in using the style blindly.
8. Conclusions: In this final section we’ll combine the lessons and discussions of the previous chapters, and reach at conclusions about who should use the forex scalping trading style, and the best conditions under which it can be utilized.
Next: How Forex Scalpers Make Money
Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.