WEALTH CREATION: Scalping Strategy

<h3>
What is scalping?</h3>
Basically all we’re looking for is an attempt to extract small but 
frequent gains in the market. Scalping strategy is focusing on the 
short-term time frames. When we’re trying to trade on an intraday basis,
 there are certain advantages like it removes the guesswork of trying to
 identify the long-term or the medium-term trends and as a result, we 
really don’t need to pay too much attention of where price might end up a
 week from now, because we’re more focused on what’s going to happen 
today or maybe in the next hour of trading. 
I hope that at the end of this article you have a clear idea of how 
to use a 15 min chart to succesfully implement the scalping strategy in 
your everyday trading. This is an easy strategy to follow and of 
course at the same time very profitable with a high risk to reward 
ratio. 
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There are certain portions of scalping that makes it attractive and 
there are certain portions that makes it less attractive. The good part 
about scalping is that reduces the duration of exposure as the longer 
you stay in the market, the longer you’re extending your risk and the 
potential for an adverse move that can cause you a loss is higher. 
Generally speaking scalping offers more opportunities in any given swing
 and there is a continuous action and engagement with the market. The 
bad things of scalping are the high cost of commissions and fees and 
requires a high level of self-discipline in taking losses. 
Because of the many advantages scalping gives the majority of traders
 wants to scalp, but scalping profitably is a nightmare and not everyone
 has the right personality and psychology to emulate this type of 
trading. Ultimately, you’re the only one who can answer this question 
and you need to find by yourself if scalping really is for you as it all
 comes down to whether or not your personality fits into scalp trading. 
Going further, I’m going to introduce you to a very easy strategy 
that will teach you what and when to scalp with discipline and designed 
to make your life much easier. 
<h4>
15 Minutes London Open Scalping</h4>
This strategy is designed to work around the London open and New York
 open, however the same principle can be applied to the other major 
opening trading sessions as well. The simplicity of this strategy comes 
from the fact that it only uses one indicator – the RSI indicator, which
 will help you spot divergence in prices. This strategy also makes 
perfect use of the time of the day significance, because the majority of
 the times the big moves on an intraday basis happens during the opening
 of the London and New York session. Another major advantage that this 
strategy gives you the possibility to not be stuck at your screen all 
day long and to have a better time management. 
Let’s not waste any more time and proceed further with a short summary of our scalping strategy. 
The 15 Minutes London Open Scalping (Can also be applied to New York Open) 
<ol>
<li>Currency Pairs: Preferable GBP/USD and EUR/USD, but works on other pairs as well;</li>
<li>Time Frame: 15 Minutes;</li>
<li>Indicators: RSI with Period= 14;</li>
<li>Define Asia Trading Range: Establish the range from 0:00 GMT to 6:00GMT;</li>
<li>BUY Signal: A break below the Asia Range with divergence spotted in RSI is desired to be faded and be bought;</li>
<li>SELL Signal: A break above the Asia Range with divergence spotted in RSI is desired to be faded and be sold;</li>
<li>Stop Loss for Sell/Buy Trade : 10 Pips above/below the breakout candle;</li>
<li>Target for Sell/Buy Trade: </li>
</ol>
<ul>
<li>Option 1: At least 1 standard deviation, but the desirable target would be 2 SD;</li>
<li>Option 2: Target the 5 Day ATR; </li>
</ul>
<a href="http://www.forexstrategieswork.com/wp-content/uploads/2015/10/15min-scalping-strategy.png"><img alt="15min-scalping-strategy" class="alignnone wp-image-4143" height="379" src="http://www.forexstrategieswork.com/wp-content/uploads/2015/10/15min-scalping-strategy.png" width="710" /></a> 
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We’re going to move further and look at some practical examples that will show you how this strategy works. 
First Example is a long GBP/USD setup right at London Open where we 
have a false breakout to the downside of the Asia range with spotted RSI
 divergence which is a BUY trigger signal. Our SL would have been 10pips
 below the breakout candle and also below the most significant swing low
 point. The take profit level is calculated as follow you measure the 
distance in pips of Asia range and project that range to the upside. In 
our case we have a 25 pips range, which means that a move to the upside 
of the same magnitude would equal 1 standard deviation. 
<a href="http://www.forexstrategieswork.com/wp-content/uploads/2015/10/fast-scalping-strategy.png"><img alt="fast-scalping-strategy" class="alignnone wp-image-4145" height="384" src="http://www.forexstrategieswork.com/wp-content/uploads/2015/10/fast-scalping-strategy.png" width="710" /></a> 
In our second example we’re going to have a look at some short 
opportunities in EUR/USD. Once again the breakout of the Asia range in 
confluence with RSI divergence has produced a nice short opportunity. 
Our short signal was triggered at the London open once we had the false 
breakout of the Asia range with spotted RSI bearish divergence. 
The potential profit on this trade is much bigger as price traveled 
twice the distance of Asia range and we could have captured a two 
standard deviation move. 
<a href="http://www.forexstrategieswork.com/wp-content/uploads/2015/10/intraday-scalping-strategy.png"><img alt="intraday-scalping-strategy" class="alignnone wp-image-4146" height="367" src="http://www.forexstrategieswork.com/wp-content/uploads/2015/10/intraday-scalping-strategy.png" width="711" /></a> 
Last but not least we’re going to look into an opportunity that would
 have not worked out and in this case we’re going to look at USD/JPY. We
 have breakout of the Asia range with spotted bullish divergence, 
however, this time around the trade would cause us a loss. One 
particular lesson that can be learned from this trade is that whenever 
we have a wide Asia Trading range, with the market trading heavily on 
one side it’s best to not trade that pair at all, because key feature to
 this strategy is the need to have a narrow Asia range. 
culled from http://www.forexstrategieswork.com/15-min-scalping-strategy/?subid=gr241015

Making Extra Cash With 15 Min Scalping Strategy

What is scalping? Basically all we’re looking for is an attempt to extract small but frequent gains in the market. Scalping strategy is f...

WEALTH CREATION

Making Extra Cash With 15 Min Scalping Strategy

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