IndicatorForex.com

  • Home Page
  • Articles
  • MetaTrader Indicators
  • Traditional Indicators

Primary links

  • Home Page
  • Articles
  • MetaTrader Indicators
  • Traditional Indicators
Home

Best Scalping Forex Indicators

Wed, 08/10/2011 - 13:20 — IndicatorForex.com

Scalping is an extreme trading style that involves entering and exiting the market at very quick times, reducing your exposure to the market and taking little profits. Scalping can be very profitable if you react quickly and have solid trading indicators to generate the signals. This article will describe several of the best scalping indicators.

One of most powerful scalping tools is the Parabolic SAR (Stop-And-Reverse). This indicator generates buy\sell signals on any pair and timeframe, and can be used to generate powerful scalping signals.

parabolic sar indicator

It is recommended to confirm the signals of the Parabolic SAR with support and resistance levels, so you enter long trades when you get signal from SAR and price is on a support level, and short trades when price touches a resistance level. This makes the signals much more accurate and improves the win rate significantly.

parabolic sar support resistance

Another powerful scalping indicator is the Stochastic Oscillator. It can generate signals even in scalping timeframes like 1-M and 5-M, and can be a valuable addition to your scalping arsenal. As usual it is recommended to confirm the signals of the Stochastic Oscillator with support and resistance, to make sure that price has strong reason to reverse and not based solely on indicators. In scalping it is important that you confirm your trades with at least 2 tools, as price is very unstable in those timeframes.

You can also use the MACD Indicator to gauge the general trend of the market and confirm the trades: enter long only when MACD crossed upwards and enter short trades only when MACD crossed downwards. It is another trick than can make your scalping accuracy much higher. While scalping is generally more risky than day-trading or swing trading, with the right tools you can generate good signals that are profitable in the long-term.

Another indicator which can be used for short-term indicator is the Accelerator Oscillator as it is highly sensitive to changes in trends. We recommend trading it in the following way: when the Accelerator is above zero and turned from Red to Green it is a long signal, and when it is below zero and turned from Green to Red it is a short signal.

accelerator oscillator

In conclusion, we have described 3 indicators that can generate very good scalping signals, we hope you will use them to great success.

Tweet
  • Trading Articles
  • Login or register to post comments

FXSmooth™ Indicator Made $127,921 in 2009!

 CLICK to see PROOF!

You may also like this:

  • Trading with Accelerator Oscillator Indicator
  • MACD Indicator: Special Trading Techniques
  • How To Use Parabolic SAR Indicator
  • Parabolic SAR Alert Indicator (MT4)
  • Bollinger Bands and Stochastic Trading System
Theme by IvanSF

Disclaimer