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A thorough explanation of scalping techniques in overseas forex trading | Easy-to-understand and highly reproducible strategies
\n","description":"Many people want to make money through scalping in overseas forex trading, but a significant number have concerns such as \"the methods seem complicated\" or \"overseas forex has wide spreads, so isn't it disadvantageous?\" In reality, with the right strategy and by choosing the right overseas forex broker, it is entirely possible to accumulate profits efficiently in a short amount of time. This article provides a detailed explanation of highly reproducible scalping methods, along with key points and precautions for success. Furthermore, it includes a comparison table of accounts best suited for scalping. Three Recommended Scalping Methods for Overseas Forex There are various methods for scalping, which aims to capture price movements in a short amount of time, but here we will explain three methods that are particularly reproducible and easy for beginners to intermediate traders to implement. These are simple strategies that utilize the basic principles of the market, and by following the correct procedures, you can aim for stable profits. Buy-on-Dip/Sell-on-Rally Method Using Horizontal Lines on the 1-Hour Chart Horizontal lines drawn on the 1-hour chart are price ranges that many traders pay attention to. A scalping strategy that uses horizontal lines on the 1-hour chart as a reference to take positions in the direction of the trend on the 5-minute and 1-minute charts is called the \"Buy on Dips and Sell on Rallies Using Horizontal Lines on the 1-Hour Chart\" method. The specific trading procedure for the \"Buy on Dips and Sell on Rallies Using Horizontal Lines on the 1-Hour Chart\" is as follows. Now, let's explain the flow of the method using an actual USD/JPY chart. Trend Following Using Bollinger Bands Bollinger Bands are an indicator that can visualize the range of price fluctuations. When the trend is strong, the bands expand, making it easier to judge opportunities for buying on dips and selling on rallies in the short term. The specific trading procedure for the \"Trend Following Using Bollinger Bands\" is as follows. Now, let's explain the flow of the method using an actual USD/JPY chart. Targeting Trend Reversals on the 1-Minute Chart with RSI + MACD RSI measures whether the market is overbought or oversold, and MACD is an indicator that can judge trend reversals. By combining the two, you can accurately capture reversal points on the 1-minute chart. The specific trading procedure for the \"RSI + MACD 1-minute trend reversal targeting method\" is as follows. Now, let's explain the flow of the method using an actual USD/JPY 1-minute chart. Points for success in scalping with overseas FX To consistently earn money through scalping with overseas FX, it is essential to prepare multiple elements, including the trading environment and money management. By being aware of these, you can increase the reproducibility of even short-term trades and accumulate profits more efficiently. Use a low-spread overseas FX account that officially allows scalping With overseas FX, assuming you choose a broker that \"officially allows scalping,\" the narrowness of the spread and the high execution speed greatly affect the results. You can scroll Broker Name Account Type USDJPYEURUSDGBPUSDAUDUSDXAUUSD Exness Zero Account 0.45 pips (0.1 + 0.35) 0.45 pips (0.1 + 0.35) 0.65 pips (0.2 + 0.45) 0.6 pips (0.1 + 0.5) 0.8 pips (0 + 0.8) Axi Elite Account 0.675 pips (0.5 + 0.175) 0.575 pips (0.4 +0.175) 0.875 pips (0.7 + 0.175) 0.475 pips (0.3 + 0.175) 1.35 pips (1.0 + 0.125) Axiory Nano Spread Account 0.7 pips (0.4 + 0.3) 0.6 pips (0.3 + 0.3) 0.6 pips (0.3 + 0.3) 0.7 pips (0.4 + 0.3) 1.9 pips (1.5 + 0.3) ThreeTraderRaw Zero Account: 0.7 pips (0.5 + 0.2), 0.6 pips (0.4 + 0.2), 1.0 pips (0.8 + 0.2), 0.5 pips (0.3 + 0.2), 1.0 pips (1.0 + 0). TitanFX Blade Account: 1.15 pips (0.8 + 0.35), 0.95 pips (0.6 + 0.35), 1.35 pips (1.0 + 0.35), 0.75 pips (0.4 + 0.35), 2.63 pips (2.6 + 0.03). Overseas FX Spread Comparison (Trading Fee + Average Spread). For example, many overseas FX accounts that use the ECN system directly connected to financial institutions have an average spread of less than 1 pip, making them suitable for scalping with a high number of trades. Furthermore, it is important to consider whether the overall suitability for scalping is met, including execution speed. Regarding overseas FX spreads, we have compiled a comparison table of spreads from various companies based on our own measurements and published it in \"Overseas FX Spread and Fee Comparison List\". Trend Following on Higher Timeframes Scalping is based on short timeframes such as 1-minute and 5-minute charts, but it is important to always check higher timeframes when deciding on the direction of entry. The advantages of being aware of trend following on higher timeframes are listed below. For example, if an uptrend is clearly visible on the 1-hour or 4-hour chart, prioritizing buying on dips on shorter timeframes makes it easier to increase your win rate. Limiting Risk with Small Capital Because scalping involves frequent trades, beginners tend to have unstable win rates and are prone to losing capital quickly. Therefore, it is important to limit risk by starting with a small amount of capital rather than investing a large amount of capital all at once. Overseas FX allows the use of high leverage, so it is possible to gain experience while trading sufficiently even with a small amount of capital. Improve either your win rate or your risk-reward ratio. In scalping, the number of trades is high, so it is difficult to perfectly improve both the win rate and the risk-reward ratio. However, if one of them is stable, you can accumulate profits. For example, with a strategy that has a win rate of over 80%, you can steadily increase your profits even if the profit per trade is small. Conversely, even if the win rate is around 40-50%, if the risk-reward ratio is 2:1 or higher, the profit from wins will be larger than the profit from losses, so the overall result will be positive. Beginners should take advantage of bonuses. Many overseas forex brokers offer deposit bonuses and account opening bonuses. This is a valuable opportunity for beginners in particular to gain practical experience without exposing their own capital to significant risk. For example, if you deposit 50,000 yen and receive a 100% bonus, you will be able to trade with 100,000 yen, and there will be more leeway in your margin maintenance ratio. For the latest bonuses from overseas forex brokers, please check \"Summary of the Latest Bonuses from Overseas Forex Brokers\". Consider high-volatility CFD instruments. While scalping typically involves accumulating small price movements of a few pips, choosing high-volatility instruments allows you to efficiently aim for larger price swings even in short trading periods. Gold (XAUUSD), crude oil (WTI), stock index CFDs, and Bitcoin (BTCUSD) are particularly characterized by their active price movements, making them more likely to generate profit opportunities than currency pairs in a short amount of time. […]"}