Scalping indicators are special technical tools for trading on the Forex market, which greatly simplify the analysis of the chart and the decision-making algorithm to conduct short-term trading.
Scalping is a type of short-term trading, which involves the conclusion of many transactions in the shortest possible time and earnings on small price fluctuations.
Considering that trades are concluded not for months or even for days or hours, but most often for minutes, the best indicators for scalping must meet certain requirements – be extremely accurate and quickly respond to any market changes. After all, even a second or minute delay can cause the loss of a good moment to conclude a profitable deal.
Scalping involves a large number of open trades during one trading day. Therefore indicators for this type of trading are often made signal or arrow, which greatly simplifies their work. With the correct structure of work, a trader has the opportunity to make good profits.
And even if the amount of income in one transaction is small, provided that dozens of successful positions are opened per day, trading can give a large profit.
The logic of using indicators in scalping
The scalping indicator is usually used to simplify the market’s technical analysis and improve the speed of decision making. So, if in long-term trading a trader has the opportunity to analyze the events taking place on the market for a long time and thoroughly, then in the process of scalping everything must be done quickly. And to better understand the market, not to miss good moments for making deals, they use indicators.
This instrument can be used in different ways – as an auxiliary tool or as the main one. So, traders often use indicators to draw trend lines, channels, search for support/resistance zones, some patterns, and patterns. When the chart ceases to resemble just a set of numbers and lines but becomes clear and logical, it is easier to find successful entry/exit points from the market.
If the Forex scalping indicator is used as the main tool, we can already talk about fully automatic trading. The trader monitors the current situation and opens deals when receiving a signal from the indicator (sound or in the form of arrows). Such trading is dangerous because the trading automation tool is not always able to respond to atypical situations.
Therefore, to avoid losing trades, a trader should understand the chart, work according to a certain scalping trading strategy, and make final decisions on his own, based on knowledge and experience.
Scalping indicators should not lag, so they are often used in combinations that allow you to double-check some instruments’ signals and exclude possible inaccuracies in others.
Scalping attracts many traders who can quickly accelerate the deposit, getting the result of transactions in the shortest possible time. For scalping, it is not necessary to use special instruments – sometimes a combination of several standards or one well-known instrument is enough, which will allow you to better understand the market and work effectively according to the chosen strategy.
It is unlikely that you will find the best tool, but their combinations work well. So, experienced masters advise to simultaneously apply lagging instruments ( Bollinger waves/bands, moving average) with leading ones ( RSI, Stochastic ). It is also advisable to use indicators without redrawing (oscillators and others).
This is a scalping indicator designed for binary options trading. The instrument is installed in the MT4 trading terminal, plotted on the asset chart, and a separate window with a histogram appears under the chart. The following information is displayed on the chart in the form of text: the name of the asset, the strength of the current trend, the time until the candlestick closes.
It is best to enter the market when the histogram changes its color. Be sure to pay attention to the current trend’s strength – the value must be above 65%. When both conditions are met, you can open an order to purchase the put/call option.
Certain difficulties arise with the choice of timeframe and expiration. For analysis, traders can use a variety of charts (including minutes). The expiration is usually set at the level of 1-5 candles. You can download the link – Scalper-Dream.
Binary cash Comodo
A good technical tool that is used for scalping and which does not suffer from redrawing. A pointer indicator provides accurate signals, is easy to use. The instrument gives signals that there is a good moment to enter the market – an arrow appears on the chart with the direction to the desired type of option (down – Call, up – Put).
Order with an expiration of 1 bar should be placed immediately after the last candlestick closes. The timeframe can be any, but it is best to choose M5. The effectiveness of the indicator is quite high. Usually, only one of 4 trades is unprofitable – accurate forecasts are obtained in 66% of cases.
The only drawback of the instrument is the rare signaling, sometimes it takes a long time to wait for the arrows, so it is better to open several price charts simultaneously to increase the dynamics of trading.
You can download the indicator at this link – BinaryCash
Zigzag is one of the classic scalping indicators that gives many correct signals. But notifications about times to enter are often received late. Therefore, traders have created many versions of the tool that are available for payment. The free modification Zigzag Double does not redraw, generates more accurate signals compared to the standard one, but draws points on the chart instead of arrows.
Each instrument’s signal indicates the possibility of an early trend change: the orange dot indicates an increase, the blue one – a price decrease. Despite good accuracy and lack of redrawing, the indicator still lags a little.
Non-standard Forex scalping indicators
Due to scalping specificity, the use of standard indicators with the usual settings may not give the expected result. Indeed, the instruments are often late or give not correct signals due to the large volume of market noise, and there is no time to expect confirmation from other indicators.
The main advantage of scalping is that all positions are closed by the evening, and the trader does not need to transfer them overnight or control them around the clock. To increase the efficiency of trading, you can use various indicators that are not included in the standard set, but this makes them no less accurate and suitable for scalping.
All indicators are suitable for trading on M5, M1, M15, differ in purpose and principle of action, and offer a different comfort level for a specific trading strategy. Therefore, before choosing a good tool, it is advisable to study and test several.
The most popular scalping indicators:
1) Paramon Scalp – Applies to 15-minute charts for GBP / USD and EUR / USD. By adding an instrument to the chart, the trader sets the server’s working time in the “Input parameters” tab (you have to write off with the broker’s representatives, but it’s worth it, as it gives the instrument an understanding of the time of the end of one trading day and the beginning of a new one). The indicator focuses on trading sessions and pushes off from the time data at the moment of a signal for a level breakout.
The upper range is displayed with two blue lines, the lower one – pink. When the price crosses the first blue line, the trader places a second pending Buy Stop order at the value, and when the price crosses the first pink line, a pending Sell Stop is set at the second. The target when the order is triggered is 15 points. The price may pass even more, but false breakouts also occur.
2) JJN Scalper ATR is the most accurate scalping tool that gives a signal to enter a position and indicates the recommended stop loss, and takes profit levels on the price chart. It also comes with a spreader that displays the value between ask/bid prices on the price chart. So a trader can avoid the situation of opening a position with a large spread.
3) Forex Turbo Scalper – a tool from Rita Lasker. The indicator’s task is to recognize an incipient impulse, and therefore the instrument often takes small corrections for a trend reversal. But in general, it works exactly.
Displayed in a separate window under the price chart gives good signals on M5 and M15 with any asset. For each candlestick, the tool draws a yellow (sideways), blue (uptrend), or red (downtrend) chart column.
4) Zoomer Pro – continues Elder’s ideas. When forming a signal, it focuses on different TFs. Uses analysis algorithms based on methods of plotting moving averages, Ichimoku zones, Fibonacci bands.
The indicator builds a table on the database, where the vertical columns are incremental time intervals. With the installation on M1, the indicator will show the situation first for M1, then for M5, then for M15, etc. Each square is a trend (under the analysis algorithm), colors mean: green – buy, red – sell, yellow – do not enter. Many traders consider this indicator to be the best.
5) 100 pips today scalper is a simple and effective trend-type indicator, relevant for М1, М5, М15. It is displayed directly on the price chart in a curved line format that can change color to indicate the current trend.
When the trend changes, the instrument gives a signal. The red line indicates a downtrend. The yellow line indicates an uptrend. There is no data on lateral movement. Therefore, with a long lateral movement, false signals may be generated. But the indicator recognizes a change in momentum perfectly, making it possible to enter early.
When using scalping indicators, it is worth remembering that prices, even in their minimal fluctuations, can be influenced by fundamental factors. Therefore, considering support/resistance levels, following the news and indicating the global trend will not be superfluous. After all, even the most versatile and effective system can fail. Only a person can take into account all factors and make adequate decisions, even in conditions of force majeure.