Forex scalping is a trading method where the trader opens and closes a trade manually within minutes of each other in order to profit from the small price appreciations that occur when the market moves in his favor. In scalping, timing is everything, for a number of reasons.
A scalping trader has to be able to pick the right moment to get into the market and the right moment to exit. In whatever direction a currency pair is moving, there will be advances, pullbacks and further advance. There will be major movements and minor movements. A currency pair may move 100 pips over several hours, a pullback 70 pips for a few more hours, and then make a further advance of maybe 200 pips over three days. These are major moves but are for medium term traders, not scalping traders.VN:F [1.9.22_1171]
We all know that in Forex, there are different time charts in use. From the 1-minute time chart all the way to the monthly time charts, traders have a wide array of time frame charts at their disposal. However, the fact that there are many time charts is an indication in itself that there is no such thing as a perfect time chart. If such existed, then we would have no need for several time charts, and every trader will use just the best time chart for trading decisions.VN:F [1.9.22_1171]
The Fibonacci tool in Forex is a sequence of numbers used to determine key levels at which the price action could retrace to, and by extension, continue the move in the direction of the trend. The concept of the sequence of numbers was derived from the Fibonacci sequence, which was discovered by an Italian Mathematician called Leonardo Fibonacci.VN:F [1.9.22_1171]