Scalping is Fun!

Scalping is Fun!

Part 1: Fast Trading with the Heikin Ashi chart

Scalping is the fastest way to make money in the stock market. There are no other methods that can increase the capital of a trader more effectively. To explain how this is so, the Germany based Heikin Ashi Trader tells all in this e-book, the first of a four-part series on scalping.

His method is very easy to understand and can be applied immediately because it is universal and works in all markets. To scalp, the Heikin Ashi Trader uses heikin ashi charts, which are a type of ancient Japanese chart that vividly depict the course of stock market prices. Heikin Ashi charts have the ability to visualize trends more clearly than the usual candlestick charts. In addition, they also show consolidation and reversal patterns earlier than any other chart representation.

This highly effective scalping strategy can be applied in very short time frame, as in the 1-minute chart as well as on higher time frames. You can trade with this universal method in equity indices and in the currency markets, but the most common instruments are futures or forex pairs.

Content:
1. Welcome to scalping. It’s fun!
2. How do markets function?
3. What is trading?
4. What is scalping?
5. The Heikin Ashi chart
6. The scalping setup
7. Risk and Money Management
8. Make a decision!

 How do markets function?

Each market is a site where supply and demand meet. Prices vary because there is always an imbalance between demand and supply. As supply or demand comes out of balance, the price will return to a new equilibrium. Often, the price even returns back to a previous level of equilibrium. This is especially true for the currency markets because here, millions of participants take part in supply and demand worldwide. Prices vary frequently between certain areas because large institutional orders have the potential to be made.

If the price reaches a previous demand or offer level, there is a good chance that it will "turn". This means nothing other than a falling price gets into a zone where large buying orders "wait" to "catch" it. There are also reverse zones, where the price often turns and runs back the other way.