Scalp trading is when you use the 1 to 5 min charts to 'scalp' small profits. These trades usually only last a few minutes to an hour.
You can use the FPS to scalp trade Forex on the 1 min charts. Here is how:
Instead of using the 10, 25, 50 EMA's like we did in the above examples, put on the 25, 50 and 100 EMA's.
Often it is best to scalp trade at the London Open (3:00 AM EST) or the New York open (8:00 AM EST) because that is generally when the currency pairs will start to move more in one direction.
When the actual price crosses all three indicators, you enter your trade, long or short. If the price crosses down through the 100 EMA, enter short, if the price crosses up through the 100 EMA go long.
Make sure that you book a 5-10 pip profit. That is a $50-$100 dollar profit on a regular account, and more if you bought more lots. Don't try to hang on to you winning position too long, because the price can whipsaw back and you can lose. Take your 510 pip profit as soon as you can. Here is an example on the 1 min charts:
Notice that at 10:30 EST you could have entered USD/JPY long (big circle) when the price crossed up through the 100 EMA and at 10:45 you could have closed your position (little circle) and made a 10 pip profit. Then again the price crossed back down the 100 EMA at 11:30 EST. You could have sold the Yen short (big circle) and then ten minutes later made another 10 pip profit. (little circle)
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