Scalping is a trading style specializing in taking profits on small price changes, generally soon after a trade has been entered and has become profitable. It requires a trader to have a strict exit strategy, because one large loss could eliminate the many small gains the trader has worked to obtain.In scalping,if you want to make money at a very fast rate i would encourage you to use a 1minute time frame because it gives very accurate candlestick graph for scalping.Here is how a scalping diagram looks like and the best entry and exit point for scalping. It is a 1minute chart
From the graph above,there are several sections for scalping.There is section AB,BC,CD,DE,EF,FG,GH AND HI.
Section A to E
Section AB shows an upward trend of the market after which the market gains a downward trend from point B to C.At point B,there is a weak scalp thus one should not buy scalp the market at that point while at point C there is a strong scalp in the market thus one should buy scalp at that point.After scalping at point C there is another upward trend of the market from point C to point D thus it is time to collect the profit made after buy scalping from point C since point D is a weak scalping point thus one should not stay in the market there.From point D there is another downward trend of the market to point E thus a strong scalp point being created at this point thus one should buy scalp again at point E.
Section E to I
From point E,there is another upward trend of the market to point F thus a weak scalp position for a buy being created again thus one should collect the profit made from the buy scalp made at point E.From point F there is a downward trend to point G thus another strong buy scalp point being created at point G thus one should buy scalp at point G.From point G,there is another upward trend of the market to point H thus a weak buy scalp being created at point H thus one should collect the profit made from buy scalp at point G.From point H,there is another downward trend of the market to point I thus another strong buy scalp being created at point I and the process continues.This scalping process requires a trader to sacrifice a lot of time in the market since at the end of the day the trader will have managed to make huge amount of profit compared to other strategies of trading.As a trader,if you want to become a scalper,make sure to perfect 1minute timeframe since it is the best timeframe that works well with scalping.
One of the major demerits of scalping trading is that sometimes the market may decide to go against you and never to come back thus forcing you to close your position at a loss thus reducing the profits made from earlier scalps.
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