When you do short term trading and scalping the market off 1 min- 15 min charts wouldn�t you need some kind of market depth like the equivalent of level 2 quotes like in the stock market? if not what are you looking at to base your trading decisions?
Also when you say scalping what is the average pips you�re looking to capture on a single trade?
Thanks for your help
Jeremy
MB trading, an ECN provides level 2 on their platform, BUT forex is a wonderfully trending animal, far different than the stock market as you will find ---- the important things in forex “were” the fibs, but now the support and resistance areas are the KING of the movements.
coming from stocks, level 2 was very important in that venue, BUT i presently scalp a few hundred pips per day, with NO level 2 and i dont miss it ---- everything is designed around support and resistance and once you have that down, the market goes there in amazing style.
small scalps on the one minute can be 5 or so pips, but there are days, like yesterday and today, where even the one minute is popping off trades like a crazy man.
i scalp 5 pips, 20 pips and often a trade, started as a scalp develops into a simple 100 pip move.
the game is a bit different, with MUCH wider swings, but the swings pretty much follow the DOW and the time periods to go long or short that you should be familiar with from equities (the difference with forex is its a 24 hour market, so there are TWO complete reversals during that time period, and MANY, usually spaced at 1.5 hour intervals, with a MAJOR reversal (except when momentum is outrageous, such as the FIRST day of a run) at noon, est when the london market closes and the US brokers reverse the market to make up for any shares they borrowed so they can then SHORT what was a long ---- works going the other way also, as you will see !
you can join us over at my thread, MP – some of my non secrets (or whatever the heck its called today) cause we teach how to SEE the market instead of just how to trade a system !
enjoy and trade well
mp
[I][B]Within the great hall at Elfinore stands a wondrous coffer, precisely four cubits square and securely latched against the outside world. Inside that repository, shut away from impertinent eyes, abides many an intriquing trading secret garnered from around the world and over the ages !
As a child, i used to watch from the darkness as the secrets were debated and annotated by the elders. No one there held a single thought of my presence – BUT I KNOW WHERE THEY HID THE KEY !![/B][/I]
We can say for scalping that it merely found in trading when you go for higher leverage and minimizing the risks of the higher pip value and with the too close stop loss as well as limit orders. All of this procedure makes sure fast gains from your trade, and it enables you to trade in such pattern many times to make a big profit. Making small profits and using scalping strategies are the one of the best way of making money…some times I use Urban Tower Scalping strategy as well.