What is the Free Scalping System?
Welcome to the exciting world of Forex trading! If you’re a trader who enjoys making quick trades and taking advantage of short-term market fluctuations, then you might be interested in learning about the free scalping system for Forex. Scalping is a popular trading strategy that involves making multiple trades throughout the day, with the aim of making small return on each trade. This system is designed to help traders identify returnable scalping opportunities, while minimizing risks and maximizing returns. Whether you’re a beginner or an experienced trader, the free scalping system for Forex is a great tool to add to your trading arsenal.
Free Scalping System Strategy
Here’s a simple strategy for the free scalping system in Forex:
- Step 1: Choose a currency pair with low spreads and high liquidity, such as EUR/USD or GBP/USD.
- Step 2: Set up your charts with a 5-minute time frame and add the following indicators:
- Exponential Moving Average (EMA) 20
- EMA 50
- Relative Strength Index (RSI) 14
- Step 3: Wait for the EMA 20 to cross above the EMA 50, indicating an uptrend.
- Step 4: Look for oversold conditions on the RSI, with readings below 30.
- Step 5: Once oversold conditions are identified, wait for the RSI to cross back above 30.
- Step 6: Enter a buy trade at the market price.
Buy Signal
Here’s a buy signal for the free scalping system in Forex in bullet points with details:
- The EMA 20 has crossed above the EMA 50, indicating an uptrend. This is a bullish signal and suggests that the price is likely to continue to rise in the short term.
- The RSI has reached oversold conditions, with a reading below 30. This suggests that the price may be due for a reversal, and that there is potential for a buying opportunity.
- The RSI has crossed back above 30, confirming the reversal and suggesting that bullish momentum is building.
- Enter a buy trade at the market price, with appropriate position sizing based on your risk management strategy.
Sell Signal
Here’s a sell signal for the free scalping system in Forex in bullet points with details:
- The EMA 20 has crossed below the EMA 50, indicating a downtrend. This is a bearish signal and suggests that the price is likely to continue to fall in the short term.
- The RSI has reached overbought conditions, with a reading above 70. This suggests that the price may be due for a reversal, and that there is potential for a selling opportunity.
- The RSI has crossed back below 70, confirming the reversal and suggesting that bearish momentum is building.
- Enter a sell trade at the market price, with appropriate position sizing based on your risk management strategy.
Free Scalping System Pros & Cons
Pros
- Quick returns: Scalping can be a fast-paced trading strategy that allows traders to capture small returns on short-term price movements.
- Low time commitment: Scalping can be a good strategy for traders who have limited time to devote to trading, as it typically involves making quick trades throughout the day.
Cons
- Requires discipline: To be successful at scalping, traders need to be disciplined and have a solid trading plan in place. They also need to be able to stick to their plan, even when the market is volatile.
- High transaction costs: Since scalping typically involves making multiple trades throughout the day, traders may be subject to high transaction costs in the form of spreads, commissions, and other fees.
- Emotional stress: Scalping can be a stressful trading strategy, as traders need to make quick decisions and manage their emotions effectively in order to succeed.
Conclusion
In conclusion, the free scalping system for Forex can be a returnable trading strategy for those who are able to identify and execute trades quickly and effectively. By capturing small return on short-term price movements, traders may be able to achieve a high win rate and minimize their risk. However, scalping can also be a challenging and stressful trading strategy that requires discipline and emotional control. Traders need to have a solid trading plan in place, and be able to stick to it even in volatile market conditions. Additionally, high transaction costs and limited potential returns may make scalping less attractive to some traders. It also requires a broker with tight spreads, low commission fees and quick execution speeds. IC Markets is my top choice of broker for scalping using manual and automated forex strategies.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
