Forex ScalpingMore closely, scalping has to do with profiting from the short-term movements in the exchange rates. It may even be that the trades only involve investments that last a few hours or even minutes. To do this, most scalpers pay close attention to market indicators that indicate potential close term market movement. These indicators are called technical indicators, and they are normally based on either mathematical models or chart patterns. There are also short term pattern recognition software available, and these try to predict market movement based on neural networks, which analyze the past price movements and try to find similarities to the current situation. Some scalpers make use of news or fundamental information. These are special events, where forex rates react to some event that has just happened. Time is of essence to reacting and scalping profits on such a strategy, so your choice of broker and trading platform, as well as the news source would also be of essence. |