Northern lights forex scalping strategy

Entry and exit points can be judged using fundamental analysis as well as technical analysis as per the other strategies. In other words, all positions are closed before the market closes.

TRADE ECN FOREX/CFD

This can be a single trade but typically a day trader will make multiple trades throughout the day. Trade times range from very short-term matter of minutes or short-term hours depending on the market conditions and the patterns and indicators recognized. But as stated, all trades will be opened and closed within the trading day. There are many ways to recognize entry and exit points depending on what pattern strategy you are following.

You could be using a continuation, reversal or neutral chart pattern for the current market condition and be following a pennant, head and shoulders or triangle pattern. This type of strategy is becoming immensely popular with traders because it allows a great number of trading opportunities and it has a medium risk to reward ratio.

It does, however, require a lot of time spent every day and also a solid foundation of technical analysis is required. Scalping describes the strategy of taking small profits on a frequent basis by opening and closing multiple positions throughout the day. This strategy is all about short-term trades quick as 1 minute to 30 minutes, as with small returns but with great frequency to maximize daily profits if possible. Because this strategy is so short and quick, the most essential part is to identify a trend as it is about to happen.

Indicators such as the moving average are crucial tools to spot trends. Using these key levels of the trend on longer time frames allows the trader to see the bigger picture. Scalping gives you the greatest number of trading opportunities in comparison to all the other Forex strategies but it requires a LOT of time invested, with a strong foundation of technical analysis and it has the lowest risk to reward ratio. Swing trading is an attempt to profit from the swings in the market. These swings are comprised of two main parts, the body and the swing point. In this strategy you want to time your entries so that they catch most of each swing body, somewhere between the extreme top and bottoms of a swing to maximize profit.

Swing trades are usually medium timeframe positions that are generally held anywhere between a few hours to a few days but can last up to a few weeks. Swing trading poses a substantial number of opportunities to trade in a medium risk to reward ratio, but it requires a strong foundation in technical analysis and requires a lot of time. A Forex carry trade involves borrowing a currency in a country that has a low interest rate and low yield to fund the purchase of a currency in a country that has a high interest rate and high yield. Carry trades are dependent on interest rate fluctuations between the associated currencies and lend itself to medium to long-term trades that can last weeks, months and even years.

There are two aspects to a carry trade: exchange rate risk and interest rate risk. Therefore, the best time to open the positions is at the start of a trend to capitalise fully on the exchange rate fluctuation. In terms of the interest rate, this will remain the same regardless of the trend as the trader will still receive the difference int the interest rate between the target currency and the funding currency. While you can invest in the Forex market from any African region during the major trading sessions, trading when the market is the busiest will lead to better profits.

Foreseeing the Forex Scalping Signals

Greater volume and volatility of the Forex market as buyers and sellers make their moves, creates the best opportunities for traders. The session times are important to consider when choosing currency pairs, for example EUR or GBP pairs should be traded in the London Forex trading session. It is also important to know about the other trading sessions because the Forex market is contingent on fundamental analysis which is informed by major news, reports, indicators and other data.

Indicators are usually, but not always, released to coincide with active trading sessions on the Forex marketplace. It is always good to select your currency pair and then see which Forex trading session is most active, alternately you can do it the other way around as well. Ultimately you want to consider all the information available to you which will inform the best trading times to execute trades, along with your preferred trading strategies.

Below are some of the strategies you could use in the Tokyo session:. Day trading — daily pivot strategy There are periods where little trading happens — ranges hold their positions Range Trading Consolidation could take place after market moves taken in the New York session. Below are some of the strategies you could use in the London session:. Swing Trading Trends will begin during this session and most times continue to the start of the New York trading session Trend Trading.

Reversal trading — trends can sometime reverse at the end of the London session because European traders lock in profits. Due to the sheer volume of trading that occurs and the high liquidity you can trade nearly any Forex currency pair. It is always good to stick with major pairs because they have the tightest spreads and are influenced by any news announced during the London session.


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The New York session is the financial centre of trading in the U. Because eighty five percent of all Forex trades involve the Dollar, when great U. Below are some of the strategies you could use in the New York session:. Because there is such a high volume of trading in this session nearly any Forex currency pair can be traded, although is always best to choose the majors.

As the dollar is on the other side of most transactions in this session, any big data released from the U. We would love to say that there is one, best strategy that will always ensure that you make profits, but that is impossible. There is no single strategy or answer that will fit everyone, even if they are great strategies in of themselves. There is no one strategy, just as there is not one best genre of music or film, style of clothes, or cars to drive.

Because personality is a big part of deciding and feeling what will fit YOU best. Not all people like the same kinds of music or artists, and not all Forex trading strategies will fit your personality either. As in most things, as you start your trading education it is important to digest as much information as possible and learn as you go, by doing a lot of experimentation. This how to guide, looked at the Forex trading sessions and explained everything you need to know from strategy to execution in the four timelines: Sydney, Tokyo, London, and New York. As you get the feel for which of these strategies best appeals to you and as you gain more experience and knowledge in Forex trading, you will be able to better incorporate some of these amazing strategies into your successful trading careers.

Intraday is the best time frame and Intraday Traders will use minute charts which include 1-minute to minute periods.

At the end of the day, these traders will exit the market. Intraday Trading makes way for plenty of opportunities and fewer risks. What are the South African Forex Market trading times? View the forex market operating hours in South Africa Johannesburg here.

Traders can hold a position for anything from a few minutes to a few years. Trading forex can be an ultimately rewarding experience, but you must learn the ins and outs first. Forex Trading Atlanta Georgia.

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