Let me teach you the safest way to scalp forex for profits. First a warning. Don't just jump into scalping without some practice. This is easy . . . well no, it's not. It LOOKS easy. Let me show you how to do it and actually make money at it.
Pivot points are the old stand-by of the short term floor traders, and a lot of scalpers try to use them. I'm going to tell you to flat out ignore them. Yeah, that's right. Just ignore them. You need to learn to trade against the market. You need to learn to fade the market, and good for you, it's not too hard.
Here's how it's done. Set up your charts in a short time frame. Something like a 1 minute or 2 minute chart would work well. Don't use anything higher like a 5 minute chart. Now put a MACD on that chart. I'd recommend not using the standard settings. Speed it up. Use smaller numbers. I like to use multiples of five.
Okay, now you are set up. You need to look for divergence between the price and the indicator. Once you see that, you go in on then next bar's open. I'd look for at least 10 pips profit, but no more than 15 pips. The price moves in small waves at this level.
Set you stop to 5 or 6 pips. Maybe even 7 pips, but no more than that. Also when half of your profit target has been achieved, you need to move your stop up. That will allow you to trade with a good ratio of profit to risk.
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