Picking Currency Pair for Scalping

Beginner Questions
1

Hi all,

[B]TLDR: How do I pick a currency pair (from the four Majors) for scalping?[/B]

Background: I was involved in Forex about three years ago, as the technical partner (code EAs, don’t understand much about Forex itself). Lost a bunch of money, learned a lot of lessons.

Distinct from my previous experience, I’m now looking for lower-risk, slower gains that will compound over time – hence scalping.

I previously intended to try EURCHF, but it seems that cross pairs have higher spreads, and equal or lower volatility to the Majors. Since most places (including BabyPips) recommend trading on one of the Majors for scalping, how on earth do I decide which of them to pick? (I would like to stick to just one pair to start.)

2

Sticking with just one pair is the best idea.
Don’t go for the cross currency pairs as their spreads are killing for the scalpers.(You’ll just be filling your broker’s pocket)
I would strongly recommend EUR/USD for the scalpers for 2 reasons:
1.It has the lowest spread.
2.It’s the most volatile major currency pair.
Hope it helps.

3

Why would I want a volatile currency pair?

Volatility is measured in average candle size (number of pips, say). If I’m scalping, I will likely set TP targets of 3-5 pips; even with ridiculous spreads (during news releases?), I’m looking at a movement of less than ten pips to make a profit.

If the market is trending/volatile, it doesn’t help me. Whether the movement is 5 pips, or 50 pips, or 500 pips, I will still set a TP of 3-5 pips and exit. (I’m assuming no more than one trade per candle.)

So how does volatility help me scalp?

4

EURUSD and to a lesser extent GPBUSD are the best for scalping. This is mainly due to the low spread.

If you’re only grabbing 3-5 pips you can’t afford to be paying 2 pips on a spread.

One of the guys I work with scalps very effectively on these pairs. You can check out how he does it through his myfxbook.

Rigasoy System | Myfxbook

5

I too suggest EURUSD. Also you may work with a broker who offers spread less than 2 pips and no commission.

6

This is the secondary reason i have recommended EUR/USD.The major reason is it’s lowest spread which helps scalpers to trade for a short time (seconds to minutes) without paying too much spreads again and again.
GBP/USD is good though but mostly it is recommended for the trend traders because GBP/USD is known as the most trending major currency pair so EUR/USD is the better option.