The forex signal industry has been evolving since the early 2000s. This happened when forex retail began to become popular among individual traders. Now there are still quite a few forex signal providers that provide many different types of signals. There are companies that offer long term forex signals that are trading recommendations. They target hundreds and thousands of pips. There are medium-term signal providers whose forex signals target hundreds of pips. And there are short-term signaling providers for trading and scalping that target from a few pips to 100-200 pips.
What do Forex signals have to do with scaling?
Scalping is a trading strategy based on small time frames in which you enter a position, hold it for a few minutes, take a few pips and exit. You can find an explanation of this strategy in the section on trading strategies. According to the signals we provide here, about 5% of the signals provided are based on this strategy. But major financial events can cause great instability in markets. In this article, we will explain the benefits of scaling forex signals.
What possibilities can Forex signals create by scaling?
Using forex signals for scalping is especially effective when you are insecure as a trader and when trading in large, quiet or volatile markets. Let’s look at each of these opportunities:
1. Occasions when a trader is insecure
Scaling signals always offer trading opportunities. The market can sometimes be tricky and we all know that sometimes our trading, based on long-term cards, suffers. The Forex market has shown us from time to time that it can be irrational and it is difficult to predict in which direction it will move. Scalping forex signals offers you the opportunity to make a few pips here and there, even when you can’t figure out the market. With such signals you can create pips even if you are on the wrong side of the market. Enter… take 5-15 pips on a small pull and exit. Rinse and repeat. After that, the market can run a few cents against your direction, and you are still making your pips.
2. Opportunities in large markets
Often our long-term trades simply last too long. You’re sure you’re on the right side of the market, but the price just isn’t progressing. This happens in periods of consolidation after a big move during a strong trend. USD / JPY is currently in a period of consolidation. It traded between 119.20 and 120.50 for weeks after rising by about 20 cents in the last 7-8 months. I opened a long-term trade at the bottom of this range, targeting 125.50 which is slightly below this year’s high. I know I am in the right direction because the foundations of both economies are clear. The US is growing fast and the Fed will soon raise interest rates. Meanwhile, Japan is in recession, and the Bank of Japan (BOJ) is pumping money (YEN) into the market. So the price will get my goal off, but it may take longer than I first thought. But as a professional trader, I rely on trading and can’t wait forever for the trade to close. In this case, scaling signals are useful. In such times, you can increase your account balance little by little, buying at the bottom of the range and selling at the top until a breakout occurs.
3. Opportunities in quiet markets
We know how boring it is when the market is quiet. It feels like you’re watching the paint dry. During the consolidation period, the moves may not be that big, but at least there is something on the market. In a quiet market, it is only 5-10 points. Evenings are usually like this. But most retailers have a day job and the only time they can trade is when they return from work at 6pm to 7pm. Scaling signals offer you the ability to trade and create pips even in the quietest times. As we said above, you don’t have to catch big moves to make money; 5-6 pips here, 10-12 pips there adds up. You can also increase leverage when trading in a quiet market. I usually use the lever five times in the normal market, risking about 2% of the bill in one store. When I scalp in a quiet market, I increase the leverage to 25 times,
4. Opportunities in volatile markets
Many times towards the end of 2015 we saw great volatility in the markets. The first crash was on the Chinese stock exchange in late August 2015. This sent 800 pips to the USD / JPY during Asian and European sessions, followed by a second mini-crash in early September. The Fed meeting in mid-September sparked the movement of hundreds of pips in currency pairs. It is difficult to trade in such an unstable market. You don’t know what effect the base will have on the forex market or in which direction it will send couples. It is quite dangerous to both trade during volatile times and risk a large part of your account with larger stopping goals. You can place a stop loss at 200 pips instead of the usual 40 pips, but even that won’t save you if you’re on the wrong side of the market. Scaling signals reduce risk in such market conditions. Usually these large movements occur in waves. The price ranges for about 70-100 pips in 10 minutes, then stops and trades in the range of 20-25 pips a few minutes before continuing the trend and making the next 100 pips. A profitable forex scalping strategy offers some options during the delay between two big moves. When I’m not in a long-term trade during these huge moves, it’s helpful to scalp between them. I can usually scalp 4-5 times as the price moves (20-25 pips up and down) before pulling the next 100 pips .. A profitable forex scalping strategy offers some options during the delay between two big moves. When I’m not in a long-term trade during these huge moves, it’s helpful to scalp between them. I can usually scalp 4-5 times as the price moves (20-25 pips up and down) before pulling the next 100 pips .. A profitable forex scalping strategy offers some options during the delay between two big moves. When I’m not in a long-term trade during these huge moves, it’s helpful to scalp between them. I can usually scalp 4-5 times as the price moves (20-25 pips up and down) before pulling the next 100 pips
On what strategies were Forex signals used?
There are different strategies on which forex signals are based, such as technical indicators. Some indicators used for scalping include moving averages, stochastic, support and resistance levels, trend lines, and so on. But scalping and short-term signals are also based on fundamentals like data release, economic news, central bank speeches, or political events and comments. We use all these indicators, technical and basic for our forex signals. You can find out more about the strategies we use in the section on forex trading strategy. If you have followed our signal service, you may have seen how profitable forex signals and short-term forex signals can be. We issue signals in all types of markets so you have trading opportunities regardless of market behavior.
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