How to scalping economic indicators [Forex Oni]

When an economic indicator with potential for large movements in the exchange market is released, it might be a prime opportunity for FX traders. In fact, there are many traders who specifically target such releases to earn substantial profits. Trades aimed at the immediate move following an economic indicator release are called "economic indicator scalping" (abbreviated as "indicator scalping").

In addition to my normal scalping, I also engage in "indicator scalping," closing positions in as little as a few seconds if fast, or in just a few minutes at most. In this article, I would like to explain the "indicator scalping" I typically perform.

Table of Contents

1. What is Indicator Scalping
2. What are the points for making it successful
3. Economic indicator releases with High Impact
4. Do not use contrarian reversal trading
5. Economic indicator releases with Medium Impact
6. Cautions for Indicator Scalping

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※This article is a re-edited version of an article from FX攻略.com, April 2014

What is Indicator Scalping

In the world of foreign exchange and finance, economic indicators are released almost every day, and they are one of the factors that move the currency market. Indicator scalping refers to ultra-short-term trading that concentrates on the price action immediately after these economic indicator releases.

When high-profile economic indicators are released, there is a possibility of making substantial profits in an instant through indicator scalping. At the same time, there is a risk of instant large losses, so it is essential to establish clear entry/exit rules, such as stop losses, in advance to limit risk.

Of course, it is impossible to predict the results of economic indicators in advance, so the principle is not to hold positions until the indicator release time, and to enter trades after the indicators are released and the market starts moving.

Therefore, placing entry limit orders before the indicator release is not recommended. Also, placing stop-eval losses (stop orders) after entry is practically difficult due to timing. It is crucial to focus all attention on the price action immediately after the release and act according to the trading strategy while watching price movements.

What are the points for making it successful

The points for successful indicator scalping are —