2021-04-20 15:34:18
When trades are opened and closed in the shortest periods of time, trading systems with a huge number of indicators are not always appropriate. Decisions should be made in less than a minute because scalpers hunt for a profit of just a few points
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Many scalpers trade without indicators
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Decisions on numerous intraday transactions must be made quickly. Also, you can't waste time attempting to use poorly adjusted automation, where many classical indicators are late and in need of constant fine-tuning for trading on smaller time frames, such as M1, M5, M15, M30.
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A scalper seeks to recognize common market movements and patterns on time frames M1-M30;
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It is useful to analyze the positions of major players, for example streaming data from the world's largest currency section on the Chicago Mercantile Exchange (CME);
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As a rule, without automation one should trade within a day no more than the three most common most liquid instruments - currencies.
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Psychology is also relevant here: support-resistance levels, the magic of round numbers. For example, if a quote ending with zeros is not broken at once, then most often, a rollback will follow.
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Other observations on this subject can be found in the bestseller How to Play and Win on the Stock Exchange by Alexander Elder.
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Corrective scalping at support/resistance levels: strategy
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When the price crosses 0, we determine the closing price. We place orders for entry or stop orders, taking into account the correction, which is estimated by candles whose shadows crossed the support-resistance levels.
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If the shadow below the closing level crossed the zeros – we choose support level and an uptrend, and if it is above - then the resistance and the downtrend.
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The shadow of a five-minute candle should cross the 0 levels:
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Support (the closing price is lower for the bullish candle, higher - for the bearish one);
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Resistance (the closing price is higher for the bullish candle, lower - for the bearish one).
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The size of the profit depends very much on the activity of the market participants within a day. Activity is usually observed during the opening of the largest exchanges and slows down after 2-3 hours. After 21:00 and in the hours before 10:00 scalpers usually do not trade.
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Do you want more examples of scalping without indicators? Write in comments
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