Scalping is a method of making transactions with slight fluctuations in prices on the stock exchange, foreign exchange market, and commodity markets. The main feature of trading, with the use of indicators for scalping, is the game on the quick opening and closing of the transaction and ultimately profit.
This technique begins to be applied when currency fluctuations are small. It aims to ensure that it was possible to make a profit of fifteen to twenty points. At the same time, traders strive to ensure that the risk of losing profit is a maximum of two or three points.
First of all, scalping is characterized by a large number of transactions. A trader in one day can make from thirty to a thousand sales-purchases. For good trading, he needs a large leverage. Most scalpers use from 1: 200 to 1: 500.
There are certain rules for successful scalping:
- price fluctuations slightly;
- the spread is not more than three or four points;
- knowledge of certain tools;
- There must be a large Offer / Bid.
Traders use different indicators for scalping, and they play on the active movement of the market. It happens that scalping indicators do not help. This happens when:
- economic news is published;
- profit is fixed at the end of the session;
- on holidays.
Indicators for scalping can be selected depending on the habits of the trader and the trading system that he has chosen for speculation. Very often they use a whole scalping system, due to which trade is more successful. It implies the use, in addition to indicators, of other instruments corresponding to such a fast rhythm.
The most frequently used indicators for Forex scalping by traders:
- NiNpO-ScALp. The signal for the conclusion of the transaction is the intersection of the middle lines;
- indicators for scalping by Paramon. They are a trading system on intraday charts;
- Zoomer Pro, based on the use of several moving averages that are related by the ratio of Fibonacci numbers ;
- Heiken Signal, which gives signals by arrows: green (bullish strength) and red (bearish strength).
This list is incomplete. It can be continued almost endlessly, but most importantly, single and even very accurate indicators for scalping are ineffective.
The trend is the constant direction of price movement over a certain period of time. This movement is divided into three main types: bullish (price rises), bearish (price drops), lateral (price moves with slight fluctuations).
In order to get a stable income, you need to own some tools. Trend indicators for scalping perfectly show the beginning of a trend, its end or reversal patterns. Traders often use several pieces together. There are a lot of indicators of such a plan, but in order to successfully trade, you need to have two or three trend indicators.
Indicators for scalping each have their own. But each of them has its pros and cons. Therefore, before striving to establish and start trading on them, evaluate all the pros and cons.