Many people want to know how to become a great forex scalper. They love the idea of hit and run trades where you go in and out of the market several times of the day. So, how is any of this accomplished?
Well, for starters you know that indicator menu on your charting software? Yeah, don't bother looking at that, because that's not going to help you. Scalping (or any other kind of trading style) the market requires you to actually understand the market. It's hard to do that when you've got the 5 or 6 indicators on your charts. You are too busy trying to understand the indicators, instead of the market.
Let's get a little more bare bones about this. Pull off all your indicators that you are using, so you are left with nothing but a simple price chart. Then study it. One thing should become very obvious to you after you have gotten rid of all that interference. You are seeing the market at its truest form.
When you really focus, it should become really evident where the trend is going, and as any successful trader would say, "trade with the trend".
So after you figure out how to spot the trend, its time to do a top-down perspective on this. Let's say you like to trade a 5 minute chart. Then start looking to see where the trend is on the 15 minute, 30 minute, and 1 hour chart. After you look at those charts you should have some idea where the intermediate trend is. All you have to do then, is look for scalping opportunities that match that intermediate trend.
Reading and understanding basic price action like this, should be critical to any kind of trader, irregardless of trading style and/or trading market.
John Templeton has been a successful forex trader after learning how to trade price action. Once he understood that all he needed to trade forex was on a plain chart with no indicators, his profits soared.
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