Scalping is a quick way to earn money thanks to its short trading periods. Even so, you can lose your capital at the same speed if your timing is wrong. Here are some of the windows scalpers should maximize.
European markets remain choppy while traders await the commencement of the NY market. Adding to the rough conditions are option inquiries, news, and European statistical reports released at 4 am. This state is perfect for scalpers exploiting slight oscillations on both sides.
This period is characterized by sudden directional swings courtesy of the open London, Frankfurt, and NY. markets. Although scalpers have the potential for huge profits, a slight miscalculation at this time may erase all the gains from other positions.
This period contains two parts. From 3-5 pm, the first phase is ideal for traders seeking to maximize their profits using the volatility from the US banks that are yet to close. Conversely, the 5-7 pm phase offers directionless swings that are easy to exploit.
Moments when the market is subdued are less favorable for scalping. You don’t want to be trading when a currency’s price has taken a sideways pattern.