Naked Trading Scalping Strategy
Naked Trading Strategy for the Best and Most Scalping Scalping
How to trade forex to always profit using the best and most accurate strategies without indicators. Scalping is a trading technique in the short term with the aim of suppressing a lot of losses, but can produce consistent profits. Every trader must be looking for the most accurate and best way for scalping.
How to Play Naked Trading Style
Candlesticks are certainly something that is very familiar to traders, be it forex or binary traders. Candlestick charts are an inseparable part of the trading platform, although you can still use chart charts. With the development of progress in trading, it is now easier for traders with the presence of sophisticated indicators. As a result, signals from candlesticks are often ignored. Whereas the way trading works is that price movements are not determined by indicators, but indicators are influenced by price movements. This means that the direction of price movements is not regulated by indicators.
What is Naked Trading?
Naked trading is a trading style that only relies on the visual appearance of candlesticks without using indicators. It's not easy to use a trading style without indicators, so we rely on candle patterns that appear accompanied by mastery of support and resistance.
Naked trading is indeed suitable to be applied in forex trading. For forex scalping techniques are also good. Candlestick is a form of price open, high, low and close of a predetermined time period. The open and close prices form part of the body of the candle, but the high and low prices form the shadow.
Candlesticks are divided into 2, namely:
1. Bullish (up) candlestick is a candlestick that moves to follow the Uptrend, usually green or white.
Bullish candles are formed because the open price is lower than the close price, and provides information that during that time the price has increased or the buyer is dominating the price movement.
2. Bearish (down) candlestick is a candlestick that moves down following the Downtrend, usually red or black
Bearish candles are formed because the open price is higher than the close price, giving information that during that time the price has decreased or the seller is dominating the price movement.
The high price and the low price form the shadow section.
- The high price forms a shadow high which provides information about the existence of a resistance level.
Resistance level is a level where sellers think there is an ideal place to start their sell transactions while buyers think there is an ideal place to end their buy transactions.
- The low price forms a shadow low which provides information about the existence of a support level.
Support level is a level where buyers think there is an ideal place to start their buy transactions while sellers think there is an ideal place
to end the sell transaction.
Forex Trading Strategy Using Naked Trading Definitely Profit
From both body and shadow information, we can use it by:
- Take a long position on the bullish (up) candle which looks starting to extend by placing a stop loss at the nearest shadow low and taking profit at the nearest shadow high.
- Take a short position on a bearish (down) candle that looks starting to extend by placing a stop loss at the nearest shadow high and taking profit at the nearest shadow low.
- Entry should be done before the candle closes to make sure it doesn't happen changes in the body of the candlestick. To ensure that the bullish candle remains a bullish candle, and vice versa
To further strengthen the trading strategy with naked trading, it is highly recommended to study and master the Candlestick Reversal Pattern (reversal), because before a reversal occurs, certain candlestick patterns usually appear first. For forex trading using naked trading techniques, we also know the support and resistance lines, in order to minimize the occurrence of losses.
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