Well then you can use price action to scalp 1, 5, and 15 minute charts with ease. I wont lie simple forex scalping, scalp trading is so fast paced that it can become overwhelming. So you need to scalp the right way. Price action trading allows you to analyse the Forex market without using indicators.
Instead of indicators you use candles, support and resistance, and other chart analysis to make trading decisions. Price action is perfect for scalp trading because it allows you to make quick trade decisions. I won’t cover price action basics here, if you want to learn the basics, check out my free price action strategy. The point is that price action analysis allows you to predict with a high degree of accuracy what price will do next by understanding who has control of price, buyers or sellers. If buyers are in control, you want to buy. If sellers are in control, you want to sell.
It all seems very simple right? Well, some newbies make price action a lot more difficult than it needs to be. So let me tell you a secret that will help you be a better price action trader. Those five words are vital when trading price action. If you ask yourself that question every time you look at a chart, you will be a better trader. That one simple question keeps me profitable and it keeps me from making mistakes.
No, of course not, if buyers are in control you do not want to sell yet. It forces you to properly analyses price. Instead of making a hasty decision, you are forcing myself to make an informed decision. Now, if I ask myself that question when trading 12 hour charts. I only have about 30 seconds to make a trading decision. So, if you want to trade my Forex price action scalping strategy, memorise that question. Being able to answer that question quickly and effectively is vital.
And, it is also very stressful, which brings me to my next point. Price action trading is about being in tune with what price is doing right now, so you can predict with a high degree of accuracy what it will do next. Scalp trading is about the same thing. A scalp trade normally only lasts 5-30 minutes.
So, to scalp effectively you need to analyse what price is doing right now, and what it will do for the next 30 minutes or so. Most traders use indicators for scalping, which is a bad choice. The problem with indicators is that they lag behind. Scalp trading and lagging behind just don’t mix well together. Scalping requires quick analysis, quick decisions, and quick trading. And at it’s core, price action trading is all about speed and efficiency. You can have the best strategy in the world, but if your mindset is wrong, you will fail.
And this is especially true when scalp trading. The truth is that trading breaks down into three core skills. You need to master all three of these skills in order to be a successful trader. In this article I will cover these skills as they relate to scalp trading. And in this chapter I will cover trading psychology. Yes, even with such a powerful trading strategy they would lose money. Because there is more to trading than having a good strategy.