One of the most common trading methods, especially among market newbies, is scalping. It allows a trader to make money on very small fluctuations in quotes and even on the so-called market noise. Of course, the amount of profit for each trade will be small. But due to the number of transactions, you can get a good profit. However, this trading method takes a significant amount of time and experience. Moreover, it is difficult from a psychological point of view. This trading method is characterized by a fairly high degree of emotional stress. When creating a trading strategy for scalping, standard technical analysis tools are used: indicators, oscillators, patterns and graphical figures. But in this article we will discuss scalping without indicators.… Such trade is also possible, but it has its own characteristics that you need to be aware of. Scalping without indicators is carried out in three main directions: news, candles, flat.
News is a good way to make money. After the publication of the news message, the volatility in the market grows sharply and it is not difficult to take 10-15 points. But for this you need to prepare. First of all, a trader needs to understand what effect this or that news can have on the rate of a traded currency pair. In addition, a trader should have before his eyes a calendar of important news releases, so as not to miss the opportunity to make money. As he gains experience, a trader can choose a list of news that can be used in scalping. Trading on the news requires a lot of attention and quick reactions as strong moves occur within a very short period of time.
Some traders use retracement candles for scalping profits. After a strong upward movement (for example, after the release of news), the “bears” manage to turn the tide and quotations begin to fall just as sharply. A recoil candle is forming. At its close or at the opening of the next candle, you can sell.
Scalping without indicators can be used during a flat period. The price fluctuation in a small range allows you to open deals within the channel, as well as when the price exits the flat. The second option, in my opinion, is more effective. It is imperative to limit possible losses using stop losses. To determine their levels, you can focus on local extremes.
I recommend testing all of the proposed scalping options without using indicators in demo trading. After obtaining the skills, you can start making money on a real account.