Hey, rapid-fire trader! If you get a rush from the fast-paced market, then you are probably a fan your domain name. What’s more? If you combine that with the powerful mt4 platform on FXCM Markets you are like a DJ at a party, mixing beats and making quick moves. The dance floor (read market) will react to your every turn. Let’s get deep into your trading and amplify it!
1. Setting the Scene with Timeframes
Shorter timeframes are the most attractive to scalpers and traders.
If you’re into scaling, the charts for 1-minute (M1) (and 5-minute (M5)) are perfect.
Use the 15-minute (M15), and 1-hour (H1) charts for day trading.
2. Zooming into Key Indicators
Moving Averages (MAs). When shorter MAs cross longer ones it is like a beat dropping signaling a possible move.
Bollinger Bands are similar to the bass and high notes of your trading tracks. If the price touches these bands, it could be a sign of a possible reversal or breakout.
MACD (Moving-Average Convergence Divergence), a rhythmic oscillator: When MACD crosses its line of signal, it is time to move.
3. Dance of Support and Resistance
These levels provide the rhythm. These zones are reached when prices reach these levels:
Scalping: Watch out for micro reversals.
Day Trading: Use candlestick patterns such as the hammer and shooting star to confirm your trades.
4. Volume Embracing the Flow
It’s not just the music that makes a party a success, but also the energy of the attendees. In the same way, volume is an indicator of price strength.
On-Balance (OBV), a useful tool, adds volume to up days and subtracts from down days. This can be used to indicate buying or sales pressure.
5. Strategy Spotlight
Scalping Waves: Wait for a slight pullback in an established trend. When your indicators realign themselves with the trend, such as an MA crossover, jump in!
Day trading Breakouts: Your cue is when price moves out of a tight range, especially on high volume. Consider it the crescendo at the end of a piece of music.
6. Economic News – Tuning In
FXCM’s News Feed on MT4 will give you an insider’s view. Even short-term investors need to be on the lookout for significant announcements, which can disrupt market rhythm.