Scalping is a very advanced trading strategy. The professional trader lives their life in Singapore by scalping the Forex major pairs. But do you think you can learn to scalp the market without developing the basic skills? The majority of the traders lose their capital by trading the scalp the market. If you are new to this market, you must learn to scalp in the demo account. Though you can scalp in the different time frames, learning to scalp the 1-hour time frame is a very difficult task. In this article, we will teach to scalp the 1 hour time frame.
Trade the key levels
To scalp the market, you must find the key levels. Unless you scalp the key levels, you are going to lose most of the trades. Those who are trading the minor support and resistance level, don’t even know the perfect way to find great trades. If you look at the skilled trades, it won’t take much time to develop your skills. Try to find the key trading zones in the higher time frame. Once you have drawn the key levels, focus on the market structure and switch to the 1-hour time frame. Look for the potential signals in the 1-hour time frame.
The risk to reward ratio
Before you execute any trade, you must analyze the risk to reward ratio. Those who are making a big profit in the CFD trading industry, never trade with poor risk to reward ratio. If you want to survive in the trading business, make sure you are not taking too much risk in each trade. Following the conservative method is one of the most effective ways to make big profits from this market. You might think to find the perfect risk to reward ratio in the 1-hour time frame is impossible but if you do some hard work, you can find some great trades.
Looking for the candlestick pattern
You must trade the 1-hour time frame by using the Japanese candlestick pattern. Trading the market without the help of the Japanese candlestick pattern is very risky. The majority of the traders have to use a wide stop loss since they don’t have any knowledge of price action trading. The price action trading strategy allows retail traders to make big profits with tight stops. Though it will be hard to learn about the candlestick pattern once you master this you can see the improvement in your trading strategy.
Trading the major news
You can trade the major news by using the 1-hour time frame. Since you will be using the scalping method look for the bullish or bearish candlestick pattern in the 1-hour time frame right after the news. If you spot any potential signals, execute the trade. Though trading the major news is one of the most difficult tasks but with some practice, you can easily master this skill. If required, open a demo account with Saxo and try to learn this technique.
Use potential stops
Once you learn to scalp the 1 hour time frame using the candlestick pattern, you might not feel the urge to use the stops. But without using the stop loss you are going to lose most of the trades. One big losing trades can wipe your trading account. Try to learn about the conservative trading method so that you can make big profits from this market. Look at the long term goals so that you can make a decent profit without taking too much risk. Stick to the conservative method since it is one of the best ways to make a profit in the 1 hour time. If you get confused, take your time and try to learn from the skilled traders. Invest some money to learn more about the candlestick pattern since it is one of the most effective ways to make a profit.