Chapter 6

Strategies for Scalpers

First published: 02 January 2012

Summary

Most scalping strategies employ either indicators or price action or a combination of both. Ideally, the strategies should be employed on the lowest time frames available on the broker's platform. This chapter covers two strategies for scalpers, called the rapid fire and the piranha. These two time frames give one ample opportunities to enter in and out of the market several times a day. The constant monitoring of market movements can give rise to fatigue and loss of focus. These strategies are used on the shortest time frames, namely the minute chart and the 5-minute chart. The rapid-fire strategy was designed with two criteria in mind—the most liquid currency pair in the world and the lowest time frame available. The piranha strategy was developed to give scalpers ample opportunities to bite the market and chew off small profits each time.

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