Scalping is one of the most popular and commonly used strategies in the Forex market. Scalping means that a trader makes a large number of deals, with a significant volume (number of lots) of those deals. The main assistant in scalping is technical analysis, because the deals are opened frequently and usually last no more than 3-5 minutes, while the value of the fundamental factors tends to zero, except for the publication of important news. This is why this article will review interesting and efficient indicators for scalping.
The indicators for scalping, which are an important support for pipsing traders (scalpers), must demonstrate high efficiency and be relevant. Since the scalpers practice high-frequency trading, they need to know what will happen to the market in the next five minutes, rather than the next day. Today the indicators for scalping are represented by the following candidates:
100 Pips Today Scalper
JJN Scalper ATR
The Paramon Scalp indicator is designed for scalping in the EUR/USD and GBP/USD currency pairs. This indicator features a relatively large timeframe for scalping: 15 minutes. How the Paramon Scalp indicator can be useful? It calculates the relevant trading area and indicates the stable price range. The range boundaries are also marked by narrow ranges and are at the maximum and the minimum of the day. Also, all the information that can be useful for a trader is displayed as text in the corner of the trading terminal.
It is quite simple to trade using the Paramon Scalp indicator. When the indicator sets all the lines, the trader must wait for the breakdown of one of them, the nearest to the price – above or below. Then you should put the buy-stop at the level of the second top line and the sell-stop at the furthest bottom line from the price. The stop-loss levels are also predetermined: they are the first lines marked by the indicator. In general, the use of this indicator implies adherence to the breakdowns strategy, while take-profit depends on the situation. We recommend moving the stop level to the order opening level when the price moves by more than 150 points.
The next indicator for scalping, 100 Pips Today Scalper, is also quite efficient. Unlike the previous one, the trader can choose a timeframe for trading: from 1 minute to 15 minutes. The 100 Pips Today Scalper is displayed not at the bottom, like most of the indicators, but rather on the price chart, like the moving averages, for example. The entry point is determined by an indicator line color change: the yellow line indicates the upward movement (order to buy), and the red one indicates the downward movement (order to sell). The indicator is also equipped with sound and text alerts. The color change triggers a sound alert, and the new direction of movement (UP or DOWN) appears on the chart. On traders' forums, you can often meet recommendations on combining the use of this indicator with another confirming one – for example, a Stochastic. However, the indicators for scalping perfectly work separately as well.
The last indicator in this article is JJN Scalper ATR, which is suitable for any currency pair, while its time interval is limited to 15-30 minute timeframe. The JJN Scalper ATR indicator shows the trader the current levels to start selling or buying, as well as independently indicates the levels of take-profit and stop-loss. In the upper right corner of the terminal you can see the info window that shows the necessary steps for the trader, such as buying above 1.6407.
The use of the above described indicators will make the scalping process easier for the trader. The indicators for scalping have positive statistics, where the number of profitable deals prevails over unprofitable ones. The trader should follow all the signals, without missing any.Social button for Joomla