The figure shows the repetition of transactions and steady increase the profits by steadily increasing the number of trades.
Step1: Grasp medium-term trend
Examine the trend every four hours and or on a daily basis.
Begin when you recognize one of the up and down trend.
Step2: Display five-minute chart
Displaying one minute chart or five minute chart to earn in scalping.
Time chart in scalping is different for each individual, but beginners can use 5-minute chart to avoid pressure as price movements are not so violent at the beginning.
Step3: Display moving average line and Envelopes
There are two Technical Analysis tools to be displayed.
They are the moving average line of 10EMA and 20EMA.
Display standard deviation in Envellops between 0.10% and 0.18%
Step4: Start trading
Envelope is a line of which deviation is constant up and down from the moving average line. Price from moving average line, it is a technical approach to see whether or how far price deviates from moving average line.
Because the movement of the rate often changes within the constant distance from a moving average, a strategy can be formed to “sell” near the upper end of the band or “buy” near lower end of the band.
It is likely to increase the profit in a range-bound trading market, but please beware of trend reversal.
As shown in the trading example above, make sure that you cut if the price is lower than the expected range.
Stop loss is to determine your own loss
In FX trading, particularly Scalping, please beware that stop-loss is very important.