What is the best scalping indicator? Scalping traders, of course, want to get consistent profits. Using indicators is one of the scalping traders’ efforts to realize that dream.
But the fact is that it is not easy to find a perfect scalping indicator, most indicators face false signals. This article hopefully adds to your insight to find the best scalping indicators.
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What is scalping trading?
Scalping trading is a style of trading in which traders take orders in the short term, only minutes or seconds with relatively small targets. The profit target of scalping traders is only 5 or 10 pips, even that can be only 1 pip.
Scalping trading is probably less suitable for broker beginners because it requires high concentration and patience in controlling emotions.
Scalping trading also requires support from a broker, speed of execution without delay is very important for scalping. Not all brokers allow scalping, you need to check whether your broker allows scalping or not.
Why do traders use scalping trading?
The advantage of the scalping trading style is that traders get profits in a fast time. In a day a scalper can make transactions more than dozens of times, even high-frequency trading allows scalpers to trade more than a hundred times.
Some scalping traders choose a trading style to pursue rebates from Introducer Brokers, which is the return of commissions in the rebate system. The more scalping transactions, the greater the rebate he receives.
Scalping traders try to take advantage of small wave price swings. They can quickly open buy and sell in the short term.
Why do traders use scalping indicators?
Some traders may lack confidence if they do not use indicators in conducting market analysis. Indicators are tools for traders to try to understand, analyze a price, which then becomes a reference for how he makes an entry.
Experts create indicators for the same purpose but with a different formula approach. Several indicators to analyze moving averages. Or there are also indicators to measure volatility. For scalping traders mainly use robots, usually, it works with technical analysis logic with indicators.
Indicator for scalping trading
There are many scalping indicators scattered on the internet, but usually, they are custom indicators. The indicators are created or modified by third parties.
How to use custom indicators, a trader must have an ex.4 indicator file to install the indicator on the trading platform.
However, traders can take advantage of the MT4 or MT5 built-in indicators for scalping trading styles. The following are some indicators that can be used for scalping trading.
- Bollinger band.
- Moving average.
- Stochastic oscillator.
- Parabolic SAR.
- Relative Strength Index (RSI).
Scalping breakout indicator
Breakout scalping relies on a breakout of support or resistance levels. Some traders may prefer simple scalping trading by drawing horizontal lines to shade support and resistance zones.
A common indicator for scalping trading breakouts is a Fibonacci retracement, where Fibo levels act as support and resistance levels.
Another indicator that can be used for scalping breakouts is Fractal, this indicator is quite widely used by scalping traders using a 5-minute timeframe.
Bollinger bands can also be used as a breakout indicator. This is an indicator to measure volatility, when volatility increases, the price can break out the upper or lower band. it becomes a scalping breakout signal.
However, there are also third-party indicators for scalping breakouts, for example, the B.O.S.S indicator from Forexmt4indicators.
Scalping dashboard indicator
The scalping indicator dashboard is not available on the MT4 platform, to get it requires a fee to buy the software. Various programmers make dashboard indicators with different variations of price.
One way the scalping indicator dashboard works is to take advantage of signals from correlations between pairs. This may be a bit more complicated than one might think, as traders have to focus on changing each currency.
You may be interested in the scalping indicator dashboard, one of which is sold in MQL5 here for $99.
For traders who may have difficulty using dashboard indicators, a step that can be tried is using automated trading, this will work better because it uses an algorithm that functions to scan prices between currencies faster and take short-term profits.
Scalping pullback indicator
A pullback trading strategy is one of the trading strategies in which traders look for positions before a trend goes on to continue their trend. Traders look for pullback prices to determine safe positions.
Some traders can use Fibonacci by looking at the 50 levels as a reference for signal pullbacks.
However, another indicator that can be used is the Bollinger band, where the middle band is a good pullback area for trading signals.
Moving average indicators can also be used for scalping pullback trading, by looking at the trend and waiting for the price to move closer to the MA line.
Another indicator that can be used for a pullback trading strategy is Arrow Alert v1. This indicator is made by a third party and you may have to purchase it.
How to use this indicator is quite easy if you just wait for the alert signal to appear as a sign that the price will pull back. But in practice, it may not be that easy, because the indicator is a repaint.
Scalping indicator no repaint
The no repaint indicator after the signal appears does not repaint. That means the signal given does not change due to price changes. Unlike the repaint indicators, which often appear and disappear again because the price trend changes direction. So it is often called a false signal.
Some indicators are repainted, such as Parabolic SAR, dot SAR sometimes after appearing to disappear because the price reverses direction. Moving averages are no repaint indicators, but often the dynamics of prices require special understanding to use MA scalping.
You can also use a third-party no repaint indicator, for example, TMA Non-Repaint Scalping, but you need to manually install it on your MT4 platform. You can get this indicator at Forex Strategies Resources.
Another indicator that you might want to try for scalping no repaint indicators is the RSX MA Oscillator at Forexfactory. For scalping only adjusting to low timeframes, it may be a mainstay weapon for some traders.
Scalping indicator pro mt4
Scalping indicator pro mt4 is a hot topic among traders. The price of this indicator is $199 in the MQL5 market. An indicator that is quite expensive, but is the performance worth the price?
User experience shows different results. Some traders are satisfied with this indicator, but some have had a bad experience and gave it a one-star rating.
This indicator was designed by Amid Goyal, but it seems that outside the MQL5 market, some traders provide a free version of this Pro scalping indicator.
However, it cannot be verified whether it is the same indicator or maybe it has been modified. You can try to download it from Forexindicatormt4.com
Best scalping indicator for forex
Which scalping indicator is the best will depend on the user experience. As each trader has different psychological conditions, different risk plans, these conditions cause the user experience to differ from one another even though using the same indicator trading tool.
For example, the scalping indicator pro MT4 for a good trader gives good results, but not necessarily others are the same. That is why each user sometimes gives a different review.
Maybe you often find an indicator that gives a tantalizing profit. Maybe you believe and are interested in trying it, but it’s better if you do a backtest, or further research.
Because you might be disappointed when you try it and it doesn’t turn out to be as profitable as your dream.
Best scalping indicator for gold
Maybe you think strange about the same commodity, but there are many indicators that scalping traders use for gold.
This is one of the unique things about forex trading, there are many variations of trading strategies using different indicators.
But of course, that finding one of the best gold scalping indicators also requires experimentation.
There is a Gold scalping trading system indicator Buysellarrowscalper combined with RSI. This third-party indicator is said to be a trading strategy that provides 70% accuracy signals.
You can also use the Bollinger band Fibonacci ratio for scalping indicators on gold. In this indicator, Bollinger bands do not use standard deviation but use ATR multiplied by the Fibonacci golden ratio of 1.618, 2.618, and 4.236.
There are many scalping indicators for gold, which you can explore one by one to find the most suitable according to your experience. You can see a large list of scalping gold indicators here.
Scalping trading indicators provide a lot of experience with the variety of indicators used. However, if you are looking for the perfect one, it may be difficult to find because each indicator has imperfections.
Besides indicators, trading settings in terms of position size, profit targets, maximum risk are also important concerns in scalping trading.
Moreover, scalping on gold, its high volatility, and spreads which are usually higher than the major pairs in general, traders must be prepared with all risks.
Note: Trading forex, crypto, and CFD are risky, spending money ready to lose is the golden rule of investing money in high-risk businesses.
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