FX Strategies   FX Strategies review

Scalping is one of the most common FX strategies today. Scalping is a simple trading system that carries low risk and can be performed in a very short amount of time. However, Scalping also has a share of its own disadvantages. Scalping requires you to pay for the spreads that often consumes a great deal of your profits.

This is one reason why many traders are not in favor of the scalping system. That is if they are still using the old scalping strategy.  Since most of them haven’t combined it with some more advanced FX strategies yet, they fail to see the profits and the benefits that scalping can give them. What they fail to realize is that if the traditional scalping strategy is combined with other FX strategies, scalping can be more profitable and less risky over the long term. Let us discuss the nature of the scalping business. It is ideal to trade currency pairs with high volatility and low spreads. These include pairs like EUR/JPY, GBP/USD, EUR/USD and USD/JPY. It is recommended to stay focused on the lower timeframe charts in an hour or even less. According to veteran forex traders, the best time for a scalper to engage in a trade is usually during the intersection of the European/U.S. session and the U.S./ Asian session Finally, as soon as you notice theshort-term trend, you should enter a position right away. However, you have to make sure there aren’t any big news events coming up.

Now let us talk about the new and advanced FX strategies in Scalping. The first advanced strategy is what we call the alignment while the second is known as the Martingale strategy which will be discussed in a separate article.

Now let’s begin talking about the alignmentstrategy. We are looking to combine scalping with an alignment of two types of trend. We all know that sometimes the short-term price trend is different from the long term trend. With that in mind, it is obvious that these circumstances will not be a good time to be scalping because the trends are not in alignment. These circumstances will only cause more harm than good if the short-term trend suddenly decides to re-align itself with the long-term trend.

It is best to avoid trading against the long term trend and just wait for the short term trend to show signs of agreement instead. Another tip is to use EMA’s daily and use 1 hour charts to determine these trends or you can use your own strategy for determining trends.

Always remember that you have to wait until both the short-term and the long-term trends are in aligned. Doing this will ensure you a nice form of insurance as you begin your scalping. What if you don’t see alignment of your trends? Well you just have to come back tomorrow and try again.