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Beranda / trading

Best Scalping Indicators, Beginner Traders Must Know

monarchcb.com - When you enter the world of trading, you will be presented with various strategies that can be tried, one of which is scalping. The scalping method is a trading style that is generally tried in short durations; can be in hours, minutes, or even seconds.

For a moment, scalping is indeed close to day trading. However, scalping is usually only tried for a specific duration, while day trading is usually done every day. Scalpers generally only use special moments to analyze movements.

Scalping trading style is not so suitable for newcomers, because it requires analytical skills and strategy setting. However, this does not mean that this method cannot be learned.

If you are categorized as a newcomer but want to try this method, you can use bookmarks to help organize a strategy so that you can profit. Then, what is the best scalping marker for newcomers? Follow this further description.

1. Moving Average For Scalping

Who does not know the Moving Average (MA) marker? This one marker is considered a favorite among traders. MA markers are designed plain or simple so that newcomers will not have trouble applying them.

To use MA, first select a suitable timeframe. Expert Trader Alan Farley illustrates, combining the 5-8-13 SMA on the 3-minute chart to identify the style.

The SMA line the next day will move up and down according to the existing chart. If the line is approaching SMA 5 or 8, it is a sign that the force is strong, but if it starts to penetrate SMA 13, be prepared for a reversal.

Always remember the classic MA method: if a small MA crosses into a large MA or moves up, do open buy; but if the opposite, run open sell.

2. Scalping With Bollinger Bands

Another popular marker for newcomers is Bollinger Bands. You can practice the default settings with a time frame of 5 minutes. If the price holds the lower band, go buy, whereas if the price reaches the upper band, go sell. Here, you are also asked to set a flat Stop Loss and TP figure, which is 10: 5 pips.

In contrast to the MA marker, the BB marker is suitable to be used in markets that are ranging or sideaways, and can even be detrimental if used in a trending market.

3. Stochastic

The use of this one marker is very different from the two previous markers. Stochastic is often used for other marker accessories, such as Moving Averages or Bollinger Bands.

The painting above is an illustration of the application of Stochastic with SMA-200. Why use SMA-200? That's why this line is considered to be a barrier between a bull market and a bear market. The indicator settings can be set at SMA-200 with a time frame of 5 minutes and the default Stochastic(5, 3, 3).

4. ADX

Another best scalping marker that you can try is ADX. Similar to Stochastic, this ADX can be combined with other markers, such as Moving Average.

ADX (Average Directional Index) is a marker for measuring the strength of a force. You can use ADX combined with MA for more efficient analysis.

For the strategy, install EMA-7 and EMA-21 in the 15 minute time frame, as well as ADX DI+ and ADX DI-. Stay away from the sideways market and it is better to trade with the main pair.

Illustration of ADX and Moving Average strategy applications:

You can go long if the EMA-7 rises to the EMA-21 and ADX DI+ crosses ADX DI- to the top goal. Run Exit buy if you feel the sign has been spinning goals. On the other hand, to sell, the EMA-7 needs to pass through the EMA-21 from above and the ADX DI also makes a uniform movement to the ADX DI+.

5. MACD

This MACD marker is also often combined with the Moving Average by scalpers. MACD is widely used because it can run on all time frames.

For this scalping strategy, there are 2 time frames used:

  • References perform entry: smaller time frame, can be 1-hour, 30-minute, or 15-minute;
  • Trend goals reference: can be 1-hourly, 4-hourly, or daily.

Then what is the trading method? First, let's follow the guide first, by looking for the trend goals. To find out the style, the rules are presented below.

  • When the curve moves up above the EMA-55 marker, it means that the price is moving in an uptrend and traders can look for buying opportunities.
  • The second stage, we must ensure the momentum of the entry. The time frame used in this determination has no rules, everything is related to the convenience of the trader.

A buy entry is attempted when the MACD curve crosses the sign line from the bottom up and the histogram moves above the 0.00 level. It can be concluded that the uptrend is solid.

After that, exit when the MACD curve crosses the sign line from above to bottom and OsMA moved at the bottom of the level of 0.00. At that time, the momentum of the force has weakened and perhaps the price may revolve around the goal.