All professionals who know how to make money on Forex perfectly understand the main disadvantage of any indicator - lag. The algorithm of the instrument for technical analysis will necessarily lag behind the quote by at least 1–2 bars. Of course, such an error can spoil expectations even from the operation of the most profitable Forex trading strategy. Many people like to practice various forms of fast trading in currency pairs, CDF contracts, cryptocurrencies and other assets. Scalping is the best option. However, the lagging of indicators for indicators makes it dangerous to make quick deals, where the number of points taken is often determined by the speed of decisions. What should be done?
Let's consider 4 non-indicator scalping strategies in Forex. They will definitely require some restructuring of the trading style and practice, but the profitability of Forex trading will increase significantly.
Most importantly, it is important for a trader to exclude working actions during periods of news release and not to be overwhelmed by long sessions of non-stop speculation. Scalping strategies without indicators will help you earn consistently and sufficiently in Forex.
Conservative pin bar scalping tactics
There is a category of traders who can make money on Forex by implementing a scalping strategy on pin bars... This method of trading involves opening positions on the minimum timeframes (M1 or M5) with a reference to the found pin bars.
For example, a pattern is formed on the AUD / CHF currency pair, where the M5 timeframe is used. Here it is possible to make a deal in Forex in two ways:
- below the long shadow of the candlestick - open a long position;
- the candlestick's tail is larger on top - open a short position in the foreign exchange market.
In these decisions, the trader needs to set the stop-loss level, but the place should be chosen under the opposite bar value. To fix a profit, you need to place a take-profit order at the close or open point - this moment is determined by the type of the transaction being executed.
Correct execution gives excellent scalping efficiency on pin bars. Here the trader will hold the trade for approximately the selected timeframe. In fact, in 5 minutes it is possible to open 3 positions on three pairs of currencies, but this frequency is very rare. Usually, using such a trading strategy, it is possible to carry out 1-2 successful transactions on Forex without indicators.
As an example, the situation can be (even 2 obvious cases are noted):
- currency pair on the five-minute timeframe AUD / CHF;
- a clear pin bar appears on the M5;
- the trader buys the dollar when a new candle is opened (after a long shadow);
- under the previous bar, the speculator decides to place a stop loss;
- it places a take profit at the level where the price of the bar before last closed.
The preliminary analysis of the dynamics of the foreign exchange market was qualitative, therefore the strategy of conservative scalping on pin bars gave a successful result. The trader in both moments managed to earn 15 points (9 and 6) without indicators on Forex. Very good considering the difficulty of making money on fast trades.
Scalping based on resistance and support levels
When trading operations using small time frames, principles similar to the norms of large time frames apply. The difference lies in the need to respond quickly to rebounds and breakdowns.
There are cases in which one level simultaneously begins to act as resistance and support for a moving price. These important boundaries are the focus of the search for experienced scalpers.
Suppose an important support level of 1.07780 has formed for the currency pair. If the price still breaks it down, then you should quickly open a short position. But when the quote bounces off the level of 1.07780, continuing its upward movement, a support line is formed. You should make a purchase from her.
Feature! The scalping method by levels is available even for novice forex traders. This strategy allows scalping in Forex with pending orders. This results in a significant time saving that does not worsen the effectiveness of Forex asset trading!
Scalping with averaging and Martingale strategy
Dangerous options for making transactions in Forex include Martingale strategy and scalping with averaging. This tactic can be successfully implemented by traders in conservative trading operations, and for a very long time.
The meaning of such an integrated approach lies in random transactions on highly liquid currency pairs. You need to set a take profit near the 11-16 pt level, but you don't need to place a stop loss, since it is not used in such a Forex trading strategy.
When the price starts moving against the trader's position, averaging is performed with Martingale after 22–45 points, although the speculator chooses the aggressiveness of the actions independently. The position should be opened in the same direction, however, the volume of the transaction must be doubled.
Be sure to move the take-profit border to breakeven with an indent of 10-15 points. And you should act this way until the strategy works. It is not hard to see the danger of scalping with averaging and Martingale strategy.
If you trade aggressively in Forex, then the danger of a complete zeroing of the deposit increases.
Locking spread trading method
For tactics where fast trades are used, there is a very exotic Forex scalping strategy without indicators. Not every broker makes it possible to use it, because not all brokers accept successful methods of speculators' work, setting maximum bans.
Most traders know that when orders are overlapped, the spread is calculated in a single way. That is, the speculator pays one spread on two positions. A unique situation becomes possible here - placing 4 orders of each type at a distance of 6–12 points from the value of the current quote can yield one point earnings. The income is clean and there is a prospect of its increase.
Today, the method of locking spread trading is the most effective in silver trading. In this case, you need a special trading account with a broker - the Instant option. NDD or other variations of five-digit accounts cannot be used.
Nuance! Traders, thanks to the local scalping strategy, have the optimal opportunity to accelerate the deposit in Forex. Often, the efficiency outweighs the results of making deals with the trend! It is useful to know that it is advisable to use position locking in Forex when there is a sufficient width of the flat range. This minimizes the risk of the need to align positions in a situation where some of the deals are not activated.
All of the above options for making trading transactions in the foreign exchange market refer to high-frequency intraday trading. The scalper manages to open many positions with a very fast fixation of the result. Forex scalping strategies are characterized by positions that are not kept active for a long time.
Trades are usually closed in two ways - by time or by the resulting outcome (profit size). In addition to being in demand in the foreign exchange market, scalping is popular in other areas. Speculators in binary options trading successfully make money with fast deals. However, any tactic of working in the largest financial market, especially a Forex scalping strategy without indicators, is more profitable.