The most important thing in scalping is to determine the short term trend. Before we determine the short term trend we have identify long term trend first.
If you look at chart 5 minutes EURGBP above, it is very difficult to determine the position to buy or sell. To help determine the position of trading, we can enlarge the scale of the chart and start looking for a range of price action on a larger time frame in advance.
Highly recommended for analyzing multi time frame chart to determine the direction of the ongoing trend.
In the last chart, we have a 30 minute chart. This chart is divided into sections by identifying the price movement Monday and Wednesday. With this division we will be more easy to analyze.
The purpose of the division of this chart is to make it easier for us to analyze what direction prices will move. If the chart forming higher lows and lower lows, the market would indicate the down trend. And if the chart forming higher highs and lower highs, the market would indicate an uptrend.
If both divisions indicating down trend, we now know that we should take a sell position on 5 minutes EURGBP chart with a scalping strategy that we have.
If you look at chart 5 minutes EURGBP above, it is very difficult to determine the position to buy or sell. To help determine the position of trading, we can enlarge the scale of the chart and start looking for a range of price action on a larger time frame in advance.
Highly recommended for analyzing multi time frame chart to determine the direction of the ongoing trend.
In the last chart, we have a 30 minute chart. This chart is divided into sections by identifying the price movement Monday and Wednesday. With this division we will be more easy to analyze.
The purpose of the division of this chart is to make it easier for us to analyze what direction prices will move. If the chart forming higher lows and lower lows, the market would indicate the down trend. And if the chart forming higher highs and lower highs, the market would indicate an uptrend.
If both divisions indicating down trend, we now know that we should take a sell position on 5 minutes EURGBP chart with a scalping strategy that we have.
Forex is simple follow the trend and you will rich.
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