Forex scalping can be very exciting and profitable as long as you are addressing it correctly. Because forex scalping methods always sound simple in theory, they attract many new traders. However, to become a successful reseller, you must first reach a certain level of knowledge and experience. Let’s start this process by discovering the best time frame for Forex scalping strategies.
What is a time frame in Forex
For starters, what is a time frame? As you probably guessed by the name, it is a limited period of time in which something happens. In the case of foreign exchange transactions, time frames are the chart adjustments that express the price movement. Charts are used to analyze the market, create forecasts and find the most optimal trading configurations.
The trading time frame varies from one trader to another as each has its own strategy and style. Logically, the chart will look slightly different in each chart and present its own unique opportunities. The long-term frames are ideal for swing traders, position traders, or anyone else who is looking to build a forward-looking action plan.
And any short time frame is ideal for focusing on narrow, specific parts of the chart and performing smaller operations. Small time frames are very popular among all types of day traders, and especially resellers.
What is Scalping trading strategy
Forex scalping strategies are the most exciting and complex trading approaches. The goal of each reseller is to benefit from small fluctuations in the chart, sometimes as low as several pips. After achieving several dozen such small wins, traders can make a pretty visible profit.
While trading in small portions and closing quickly each new trade sounds simple in theory, the best scalper strategy techniques actually require advanced levels of skill and experience. And the main reason to ease your way into scalping, rather than diving headlong into your first day on the market, is volatility.
Increasing volatility is the bread and butter of almost any trader in the short term, however, it can also be quite dangerous. While the graph can jump quickly in the desired direction, it could also jump in the opposite direction. This means that resellers and other volatility-dependent operators need to have a quick reaction and great skills to make critical decisions on the ground.
Of course, skill comes with practice, and anyone can effectively master Forex scalping if they put it in mind. The first step to understanding the scalping approach is to figure out the best time frame for the Forex scalping method.
1 Min speculation strategy
The Forex 1 minute time frame strategy is perhaps the most popular scalping approach. Due to the limited amount of opportunities, the trader can focus on looking for a specific signal, which is a great asset for anyone with little attention span. However, despite the Windy name ‘one minute’ , this strategy will really require at least two or three hours of your daily time.
The first thing to set is: how many pips should I look for in the 1 minute time frame. And the thumb rule answer is usually 3. However, if you clearly see that you can achieve greater profit without risking too much, or, conversely, the absolute maximum of the current configuration is 2 pips, act accordingly.
There are several conditions for the successful implementation of the 1-minute scalping Forex method. First, it is best to start trading during the most volatile sessions: New York or London. Then, although all currency pairs are more or less suitable for scalping, going with older ones will always benefit you more.
The popular indicators for the 1 min scalping strategy are the EMAs (exponential moving averages), 50 and 100, and the stochastic oscillator with periods 5, 3 and 3. By observing how averages interact with each other and confirming their signals with the stochastic reading, an operator can have the exact solutions for both long and short positions.
Minimum speculation strategy of 5
The 5-minute scalping strategy is somewhat similar to the 1-minute scalping Forex method, with the main difference being the time frame. Like the one-minute approach, the 5-minute scalping strategy focuses on capturing momentum.
The indicators that go along with the five-minute chart are the exponential moving average of 20 periods and the divergence of convergence of the moving average (MACD) in the default setting (12, 26, 9).
Stop losses and subsequent stops are highly recommended for the five-minute scalping strategy, as they do a great job of reducing losses during aggressive market conditions. Pip’s common objectives in this strategy are 10-15.
15-minute time frame
Some day traders might argue that the best time frame for Forex scalping 15M. however, due to the expansive amount of information, fifteen minute approaches may require higher levels of experience.
While the 15 min scalping Forex strategy can be beneficial for a large number of traders, it is best to hone your short-term trading skills into smaller charts, with less data to confuse you. But, that said, the 15-minute chart remains a great tool to distance and judge the overall situation from your open positions from a different perspective.
30-minute time frame
The 30-minute scalping charts are also a great “kickback” tool. While planning positions on the 1 or 5-minute charts, you can take a general look from further afield to get an understanding of the blogger’s image.
While large trend waves rarely affect resellers, noticing a large-scale pattern or trend can help you decide the overall direction of upcoming operations. In this way, even the fast-paced, grab-and-run scalp can serve as a solid and forward-looking business approach.
At the end of the day, scalping is a wonderful style, but it is not for everyone. Therefore, before jumping to one of the above strategies, make sure that it fits your personal preferences and expectations. After all, there are hundreds of other strategies out there, one of which will be a perfect fit.