A simple short term scalping strategy for Forex traders is to enter the market and study three to five minute bar graphs and then look for swings in the bars, check whether the trend is consolidating or not, the swing can be measured through price bar pattern charts. The best way is by looking for two consecutive bars on the lower high on one side of the spike and two lower lows on the other side. This would qualify for a swing. Remember that the spike should bear a higher low as compared to the bars on both sides. This situation qualifies for a genuine swing.
Keep in mind that you have to use stochastics worth (13/08) to determine where the swing is headed. After reviewing the bar charts you will see that as the trend goes higher the people trading in the market tend to pull back, this is when the indicator crosses down also, do not make you move for the short trade as yet, because the trend is still upwards. As soon as the market stalls while on its way down, the indicator crosses to go up, this is your time to stay for about twenty to thirty pips and then exit.
This strategy has been endorsed by the trading guru Sandy Jadeja and people make a lot of money using this effective strategy. Some people have earned as much a 400% using this scalping strategy. The important thing to take home from this strategy is to know when to leave. You should leave as soon as the stochastic turns backwards remain only until you get thirty or twenty pips, then leave immediately.
