FOREXimf.com – Hello fellow traders! Have you ever heard the term Scalping? Some also call it a technique pickpocket. Or some traders also call it the ABC technique (Blue Origin, Close Order).
Yup, one of the trading strategies that many traders choose is scalping. Simply put, scalping is a strategy of buying and selling forex assets in a relatively short time.
However, in this scalping technique, analysis and the ability to read the market are still needed. In order to get maximum profit. The scalping strategy itself is widely chosen by traders who want to make a profit quickly. They usually only hold assets for a short time (usually minutes), then finally sell their assets again.
Forex Analysis for Scalping Techniques
An important factor in scalping is timing. Since trading is done in a short period of time, being a few seconds late means missing the moment to take advantage of the existing profit opportunities.
Usually those who use this strategy take advantage of small movements of an asset. Then try to gain maximum profit. Although in practice the movement of this scalping is very fast, there are several analysis techniques that you can still do to get maximum profit, sobs.
1. Utilizing the Moving Average Indicator
One method of analysis that scalpers often use is using moving average indicator. It can be said that this is the easiest way to do analysis and almost all trading platforms have this indicator.
In its use, you only need to determine the time frame that you will use. After that, also place some moving average combination lines on the time frame.
Later you will be able to see the current trend, including you can also predict when the trend will reverse direction. In addition, you can also easily determine when to make a buy or sell position.
2. Using Bollinger Bands
Another indicator that you can also use as a way to analyze for scalping trading techniques is the Bollinger Bands indicator. This indicator itself will later show the upper band and lower band.
For example, when the forex price touches the lower band value, it is a sign to buy. While if the forex price has touched the upper band, it is an indication to sell.
The weakness of this analysis is that it cannot predict prices when the position is trending. This indicator will only be effective in predicting forex prices when the position is at a sideways level.
Advantages of Scalping Technique
After understanding how to do analysis for scalping techniques, you may also ask what are the advantages of trading using this method. Here is the explanation
1. Get Profit Faster
With the trading process taking place quickly, this also has an impact on the profits that can be achieved quickly. Scalpers usually only hold assets for minutes, usually no more than 15 minutes.
Unlike long-term trading that takes days, the benefits of calping can even be felt on the same day. The nominal profit from each trade may be small, but if the profit occurs repeatedly in that day, the total profit that can be obtained can be quite promising.
2. Easier to Correct Mistakes
The trading process with this scalping technique is very fast, so it allows you to make mistakes. These mistakes can be in the form of determining the wrong buy or sell point.
Usually, if this happens, it will be easier for traders to make corrections. When determining the wrong open position for example, traders can quickly close the position and then open a new position.
Including when experiencing a loss, traders can recalculate and open a new trading position quickly. This method can be done continuously throughout the day.
Maximum Profit from Scalping Technique
For those of you who are interested in using the scalping technique, then one thing to note is the issue of focus. This is not a technique where you can buy and then leave it.
At least, you should keep monitoring the market conditions while trading. This is also part of doing forex analysis with scalping so that you get maximum profit.
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