I am a scalper and use 5m and 15 min ti enter a trade and see support and resistance on 1hr chart. Are 1hr support and resistance good to scalp 5m and 15m. can anybody help me? And please tell me that it is good to scalp when news release. currently i quit trading on news release times… i stop trading 30 minutes before news release and start again to trade after 30 minutes news released… is it ok. please somebody help me… and currently i use RSI 14, bollinger band defaults and stochastic defaults on 5m and 15 m time frame. but i take 1-5 pip from one trade because i can not wait for about 10 pips as i am a beginner… i take as i can… help me to improve this situation
I don’t scalp, but I can say that using those indicators with standard settings is not a good idea. The standard settings are almost always optimized for trading the D1 chart, and are generally too slow to be useful for scalpers.
which settings do you recomend
I am also rarely trading scalping, but its good if when news will released stay away from the market as preparation, because sometime news impact giving quick impact after news has been released especially high impact nfp or fomc, and scalping on these time will making confused if movement price quickly and rapidly
As I say, I don’t scalp, so I don’t want to be too specific; any recommendation I made would be guesswork.
However, the overall object of any indicator is to quickly give you information about the market over a relevant time-frame. That last part, ‘relevant time-frame’, is key. For scalpers, the relevant time-frame is usually much shorter than for daily traders.
Take the RSI, for example. The standard setting on that is 14, which means on the M15 it is taking into account market movements from 3.5 hours ago. Do you actually care what the market was doing three and a half hours ago? If yes, and your strategy is based around that, then the setting is probably fine. But if, as I suspect, you are looking to trade movements and hold positions over a much shorter timescale, then your indicator is probably getting bogged down with old news.
my 2 cents…Look at the trend in longer periods to determine the overall trend, do not trade against the trend. If the trend is bullish, then scalp from support to resistance and avoid the other way around.
@Sandausp
Scalping is generally not a good idea
but if you want to try this
pick your instrument
go to a 1 Minute Chart
Add MACD
(Learn what MACD is, if you don’t already know)
and try that
you can also Add HEIKEN ASHI candles
and doing this will be more reliable that just standard Jap candles
but again… You’re a beginner and Scalping is not a good idea
but if you must do it for some reason, then try these things
The general advice would be: Look at the very local sentiment, with whichever tools speak to you, and trade accordingly to that sentiment. For example: If you want to trade on 1M/5M. Figure out, with tools that you prefer, the likely movement in the next lets say 2 hours.
Once you have done that, go to the 1M/5M and look for entry spots in accordance to your analysis. Meaning if you found the upcoming 2 hours to be likely bullish = only buy and the desired spots. And vice versa.
Remember that scalping is different than day trading. You need to develop a feel for it. Create a demo account. Trade there for a couple of weeks, few hours a day. Find what works for you.
Do not look for a ‘system’ or a set of indicators. With good understanding of what lies beyond the indicators you will find the ones that work for you.
Best of luck!
I’m a day trader. I trade on the 1h chart. The 1-hour levels are very useful just for the same day, maybe just till they break. See the other levels. Day/week open, high and low. They could decide alot with the next price move. Before you decide to trade the news release, you have to check and find out, if it’s suitable for your trading system or not. For example, I can do it well, however I have a trading system that need a stable price enviroment and a relativly slow moves, so I don’t need it. If you decide to trade the news, you must have special skills, like lightning typing skills, self control, cold emotions and high reaction. But first of all, you must have a high understanding to fundaments and high fundamental analysis level. decide your profit based on a number of pips is totally wrong. You just have this concept, because you had a trade , which was in green, and then went in red just after you decided to let it open. Your take profit must be based on good analysis. The market enviroment could change your decision to stay or to exit. I mean like when the market doesn’t seem to reach your TP and you better to exit now and watch out the market or a stron reversal that indicates that change of the trend and you better go out befor the price reach your SL.
You have to know well, it doesn’t just depend on you but also on your broker. It’s very senstive for you, to choose a very good broker, because you are a scalper. the low pip is very important. But not just the low pip, also the stable pip is very important. The buy price should not spike for a while or even a moment, so that you turn out losing the trade because of the spread. Second is the fast execution. Because you are a scalper, the one second does really mutter to you. So you better have an ECN account It would be agreat advantage if your broker must allow you to set orders (limits/stops) 0,1 pip from the current price. SL and TP levels as well. Your trading strategy would be successful or not depending on which broker you are trading with. The broker makes a great difference to your trading performance. I have searched between a huge number of brokers, big and small names and opened many accounts with them, until I have found my dream broker
I completely agree
if you get a shit broker, YOU HAVE NO CHANCE as a scalper.
and if scalping i would recommend Looking for Ranging Markets that have a total number of pips from top to bottom of around 10-20 pips
secondly just pick one direction, do not try and scalp in both directions
and try to rack in around 3 - 5 pips at a time that’s it
adjust your lot sizes accordingly to account for risk and perhaps set a stop loss at 20 pips from your entry, just in case you are mistaken and price rises quickly
again, it’s not a good idea to scalp
but if i was doing it, this is what i would do
I always believe that scalping can be a great strategy for those who want to focus on short term investment horizon and want to earn small to moderate profit in each trade by investing small amount. Thereby, a scalper want to accumulate big profit by earning small to moderate profit in each trade. For a scalper it is necessary to cut costs so that he can increase the profit margin, so low spread is better for scalper.
Scalping is really better trading approach that brings profit very rapidly than others. But the scalpers always feel uncomfortable when using strategy, because by and large trading platforms don’t allow this approach in their platform. So, when choosing a broker they have to be more careful.