Known to a huge number of traders, GBP/USD is in the list of the most unstable and challenging currencies in trading Forex. It is also called cable because of how rapid its instability in trends is. That puts in plain words why it has gained so much attention from traders. However, it is a fact that it can be very profitable in just a short period. Forex Scalping Trading with the currencies GBP/USD is an impressive system to build up fast earnings in a single day particularly when the currencies gives the chance to be reached.
Inopportunely, this manner of Forex scalping trading is not suggested for beginners. As discussed above, it can be very tricky and unstable. Therefore there is a high need to know your position in and out of the spread betting platform. You also have to equally recognize your speed that when you get in and out of a certain trade 回收 cd. All of these will specify your proceeds. Though some experts may disagree, it is still acceptable to make use of a company focusing on spread betting that usually suggests short spread for the currencies. Surprisingly, it can even be as short as two pips but then be alert of the possibilities that these companies may swing spreads in Forex market.
A fine example of a chart set up to successfully scalp the currencies can be done in a straightforward manner. To scalp GBP/USD, set up a chart frame by means of 3 EMA’s (Exponential Moving Averages). Then tint them as you desire. The first EMA would play as an add-on in the Forex Scalping Trading method. It will be present to provide the whole idea of the trading while the two other EMA’S will be working on entering and leaving trades.
As the two EMAS start moving, be very keen in observing any crossover’s appearance. A crossover plainly points out that there is already an alteration in course. Once the crossover is confirmed, start finding the latest support or level that will soon break. When you find it quickly enter the trade, close the deal, and then depart from the trade. To do this, you may want to use a stop loss in a small sum like 10 pips. Find a break before a stallage, then a short exchange will pursue. Bear in mind that leaving trades with not more than 10 pips is better in contrast to a loss. Besides, you can constantly penetrate the trade again. The single European currency tried to rally last week but failed at the indicated Fibonacci pivot at 1. 2870 and declined again. If you take a look at the daily chart, you will see a nice pattern of lower lows and lower highs. You will also see that the prices are below the declining 21-day moving average. All that tells us that EUR/USD is still in strong Short-Term downtrend. And that is not surprising considering the negative news from Europe. Actually it is surprising that EUR has not declined much more considering this news.
Now, if you go to the weekly chart, you will see a different pattern. Here the trend is sideways and the market is oversold. Thus the message from the weekly chart is different: it suggests EUR may find a bottom soon and stage a nice rally.
Most of the investors and traders are only focused on the time frame that they trade. However, the most appropriate way to approach the markets, is to look at multiple time frames. If you take a look the larger-degree pattern, you will know the context of the moves that you observe on the smaller time frame charts. For example, if you trade on the daily chart, you will make your decisions on the daily chart. But it is useful to know what the weekly chart is telling you. If you day-trade and take your decisions on 10-min chart, then before you make each decision, it is always worth taking a look at the 60-min chart. Otherwise, you are always under the hype of the current move that you observe right now.
Going back to the EUR/USD case, one can say confidently that the Short-Term trend (the one on the daily chart) is down. But, since the trend on the weekly chart is sideways, we should be more careful when trading from the short side. Actually, I now look for signs that the current decline is nearing its end. To signal that, a rally above 1. 2870 and then abv 1. 3070 should develop. Obviously, it is still early to say that EUR has bottomed. But what I am trying to tell you, is to be open-minded, to look at your charts and always to pay attention to one-larger degree time frame when making decisions. You may find trends that are different from those that are on the news today and that everyone is talking about. Having said that, my charts tell me the European currency will likely survive despite the negative talk we are hearing every day.