Scalping or swing trading?by Xozepew Usaz We are always in the lead!
There is a debate among adherents of intraday trading regarding the positive and negative aspects of scalping and swing trading. Even if we consider a single trading session, there are significant differences in style and approach to trading between scalpers and swing traders.
In the case of the S&P 500 E-mini (ES) contract, some supporters of intraday trading believe that during one trading session of the day it is enough to earn 2 pips, and the required level of profitability is achieved due to the number of contracts for each individual trade.
The figure "Scalping shorts" (below) shows a classic example of scalping:
EMA with a period of 20 displays a change in the direction of movement from session highs, short entries are made to the market on pullbacks. The scalper mentality allows for trend following, but the emphasis is on making quick profits on every trade.
"Scalping shorts" displays a 764 tick price chart. Price bars are formed after 764 unique trades. Tick charts generate bars (candles) based on market activity. More participants means more price bars. Some traders, especially scalpers, find that time distortion and increased activity are unacceptable for their activities.
However, tick charts allow you to “look inside” fixed time bars. Technical indicators are often more responsive to charts where price bars are formed based on the number of ticks.
The swing trading camp responds by saying that you need to be more patient and be able to discern significant intraday price movements. In the case of an ES contract, trades with a potential profit of 10 pips are often noteworthy.
Read more about difference between scalping and swing trading , because everyone needs to find their own niche in which they can trade confidently. Traders with modest experience in day trading, or more experienced traders who have problems with profitability, are more likely to have discussions about this. At any given time, in addition to the unpredictability of the forces that drive the markets, traders have to choose between scalping and swing trading. Perhaps a successful trader uses both approaches in his trading.
Created on Sep 17th 2021 02:39. Viewed 352 times.
No comment, be the first to comment.