If you’re into forex, whether a complete beginner or seasoned trader, it is highly probable that you have come across the term scalping. Scalping refers to a trading strategy based on real-time technical analysis, where the ultimate goal is to make a profit. In forex trading, scalping refers to making massive trades producing small profits in each. The concept is pretty simple and involves significant leverage so that even the smallest fluctuations in currency produce a respectable profit. As such, it is safe to say that the goal of scalping is to generate profits within a very short duration, gaining a few pips (percentage in point) from each position. Considering that the foreign exchange market is the most liquid, most volatile market, forex scalpers use scalping systems to take advantage of the minor fluctuation in the price of shares. If you are a beginner trying to understand forex scalping, this post will discuss the best forex scalping systems to help you move with the right option from the start.
Automated vs. Manual Scalping Systems
Scalping is very common among forex traders as it creates plenty of trading opportunities. The ever-growing popularity is due to the high chances of getting entry signals in most trading strategies. While there are manual scalping systems out there, most forex scalping systems leverage automated strategies. In automated systems, the scalper is responsible for educating the software about the signals to look for and how to interpret them. The software will then follow the set strategy to trade on behalf of the trader. Manual systems, on the other hand, require scalpers to sit in front of their computers and observe the market movements as they decide what market changes they take advantage of. Comparing the two, automated scalping is considered an excellent option by many. However, because the method requires minimal human intervention, it is thought to take human psychology out of the trading, a reason why expert traders prefer to trade manually but with suitable forex scalping systems.
Top Forex Scalping Systems
Choosing the best forex scalping system can be tricky. While there are many scalping systems out there claiming to be the best, here are the top best forex scalping systems for all traders.
1. Forex MI – M5 Scalping System
This is arguably the best forex scalping system out there. Forex scalping usually involves large amounts of leverage, allowing the trader to make significant profits from the minutest currency fluctuations, and this is what the Mi – M5 scalping system leverages. Although scalping presents a fair share of risks, this system can help you grow your profit margin as long as you can assess all the signals’ understanding, then purchase or sell stakes appropriately. Mi – M5 scalping system is designed to help you manage trading risks more conveniently by constantly monitoring asset prices. This quick and real-time monitoring allows for hassle-free profits no matter when you’re holding and managing your trading position.
2. Oscillator Scalping System from Stochastic
First coined and developed by George C. Lane, the oscillator scalping system from stochastic is super simple. For traders looking to identify and understand when a certain pair of currency is oversold, over-purchased, or overpriced, this is the best forex scalping system to use. The stochastic oscillator of this forex scalping system operates the primary indicator of momentum. The indicator assesses the rate by directly comparing the specific closing price with the entire trading range over a certain period. Thanks to its ability to offer reliable technical analysis, the oscillator scalping system from stochastic is also commonly used by traders looking to understand trends.
3. M1 M5 Scalping System with Fibonacci Indicator
The M1 M5 scalping system is another effective forex system backed by the famous Auto-Fibonacci indicator. This indicator operates uniquely by comparing two mobile averages, assessing their relative strength index, and then adding the RSI. Ultimately, this system enables traders to efficiently and accurately pinpoint fluctuations in the forex market. With this system, you also get Fibonacci Retracement which you can leverage to assess where maximum support is needed. For instance, it can help you know when the prices are likely to fluctuate, either upwards or downwards.
4. MACD System
This is another effective scalping system that passionate forex traders should consider. It lets you keep an eye on currency changes and assess how fluctuating price averages relate. MACD scalping system utilizes a fairly simple concept that requires the trader to do simple math. Precisely, traders need to subtract the 26-day fluctuating average (popularly known as EMA) from the 12-day fluctuating average. Overall, MACD is reliable and could be what you need to grow your investment. Many traders use it because of its quick average calculation.
5. MACD CCI System
MACD CCI is user-friendly and offers easy ways to boost your profits. The system relies on a strategy that entirely depends on the MACD and CCI indicators. In forex trading, MACD CCI makes for one of the best trading tools for forex traders interested in cyclical purchases and sales. One of the biggest highlights of the MACD CCI forex scalping system is that it leverages the Commodity Channel Index. Because it is easy to use, it can be useful to almost all traders looking to assess accurate time windows.
Summary of Forex Scalping Systems
Forex scalping requires you to constantly analyze the changes in the market and place multiple orders that generate profits. While it is not something where you will succeed out of luck, it can be very lucrative. With these top best forex scalping systems, hopefully, you will find an option that best fits your needs.