Originally Posted by alexander You cannot scalp with lagging indicators. Expected MAs are my fav, although ive heard the experts use nothing but linear regression and key time zones. In that case we have to attach the indicators manually. To learn more about other band indicators that can guide your trades, see: Last edited by BataviaTrader; Jul 23, at 9:
Best Indicators For Scalping
Scalpers seek to profit from small market movements, taking advantage of a ticker tape that never stands still during the market day. They would buy when demand set up on the bid side or sell when supply set up on the ask side, booking a profit or loss minutes later as soon as balanced conditions returned to the spread.
That methodology works less reliably in our modern electronic markets for three reasons. First, the order book emptied out permanently after the flash crash because deep standing orders were targeted for destruction on that chaotic day, forcing fund managers to hold them off-market or execute them in secondary venues. Scalpers can meet the challenge of this era with three technical indicators custom-tuned for short-term opportunities.
They work best when strongly trending or strongly range-bound action controls the intraday tape; they don't work so well during periods of conflict or confusion. You'll know those conditions are in place when you're getting whipsawed into losses at a greater pace than is usually present on your typical profit and loss curve. Read on for more about such signals. For related reading, see: This scalp trading strategy is easy to master.
The ribbon will align, pointing higher or lower, during strong trends that keep prices glued to the 5 or 8-bar SMA. Penetrations into the bar SMA signal waning momentum that favors a range or reversal. I think the best indicators are the ones you want to be the best. It depends on what tales they are telling you, how you interpret them, your strategy, if they fit your trading style and personality and so on.
Good for them but for me it does't work, because it does not fit into my trading style and also I cant get the clue of this indicator, i've bin using it for a while but I tossed it out. You yourself have to find the optimal mix which indicators you gonna use. Also, your list is nog complete, there are probably 's more. So have fun finding the right ones! Last edited by BataviaTrader; Jul 23, at 9: Hi wayfoward, If you're looking for an indicator the 'best' indicator that gives simple signals to enter and or exit trades in a timely fashion so you can consistently extract profits from the market - then none of the above fit the bill as far as I know.
Unfortunately, using indicators effectively is not as straightforward as many traders would hope or imagine and, indeed, many of them can create more problems than they solve.
You need to understand how the indicator is constructed, what it is or isn't telling you, when and why it works and, most importantly of all, when and why it doesn't work. For an example of how to use an indicator effectively for a very specific job, check out this article by Trader Position Sizing as an Approach to Risk Management If, as I guess is the case you're wanting to use indicators to assist you with entering and exiting trades, check out the threads by bbmac , here's one to get you on your way: Jul 23, , 6: You cannot scalp with lagging indicators.
Only that can do it. Originally Posted by alexander. Originally Posted by wayfoward. Jul 24, , 2: Originally Posted by timsk. Jul 24, , 8: Positions are entered and exited within a short time duration, which can be within minutes. This post is going to assume you already have an understanding of scalping and will focus on some of the indicators you could use to form a simple and successful scalping strategy.
Finding the best indicator for scalping can be difficult, but based on our years of experience, these two indicators will give you a head start to scalping successfully.
So for example, if you wanted to plot the 7 period on a minute chart, you would add all the closing prices of the last 70 minutes and divide that number by 7. If you want to learn how to calculate simple moving averages and other types of moving averages check out this post. The lines of the moving averages will stack up, pointing either above or below.
Trends have prices stuck to either 5 or 7-bar simple moving averages. Diminishing strength is depicted when price penetrates the bar moving average, an indication of a range bound market or a reversal signal. The smaller space between the lines when the ribbons are somewhat above price bars represents a sell signal, while more space among the lines when the ribbons are aligned somewhat below price bars is a signal to buy.
In an uptrend the parabolic SAR will chart points below the price, inversely it will start charting points above the price to signal the start of a retracement.