Scalping the forex market has become a popular way of trading among traders. This is because it allows the trader to take profit fast by getting out of the market within minutes. Due to the short term trading involved, the entry and exit of your trading position can make a big difference. In order to be able to conduct effective scalping, you need the help of several forex scalping indicators that can help you create an edge over the market.
In this post, I will be sharing with you several forex indicators that I use during my own scalping trade. These indicators perform different task to ensure you have a better winning probability. Do note that using these indicators does not 100% guarantee that you will make profit as trading is a game of probability.
Below are the forex scalping indicators to use
As for exit, you should exit your trade whenever you see the PSAR flipping to the side that is against your position.
2) Stochastic Indicator: To improve your trading accuracy, you can make use of the stochastic indicator to help you map out the current situation of the market. There is no point in you entering a long position when the market is already overbought and therefore this indicator can be used to help you prevent such low winning probability trade.
Whenever the stochastic hits the overbought or oversold zone and reverse, the price will usually retrace and this is the best time for you to scalp the movement. With the help of the stochastic, you will be able to know when the retracement is going to occur. For this indicator, you can use the default setting by your platform.
However I did some modification to the Stochastic indicator by adjusting the setting in order to reduce the noise produce by the default setting. This modified Stochastic indicator can help me to avoid some unnecessary losing trades.
3) Pivot Point: There is nothing more important than support and resistance for a scalper. Whenever the price hits a support or resistance, there is a chance for it to be repelled and this is what a scalper is looking for.
Other than those previous highs and lows which can be used as a level of support and resistance, you can make use of the daily pivot point to help you identify major support and resistance. The reason why the pivot point is so powerful is because it is usually used by those commercial traders and thus has more significant than other levels.
When you see the price approaching the pivot levels, you should be ready to take a look at the stochastic and PSAR to look for entry. To find out more about forex scalping system, you can read one of my previous posts that talk about how to scalp the forex market.
The most important thing for a trader is to wait patiently for a confluence of events to occur before pulling the trigger. This can greatly increase your chance of winning and avoid unnecessary losing trade.