NEW! High accuracy scalping indicators

Scalping or pipsing is used by a huge number of traders around the world in their trading. They are driven, first of all, by the desire to earn money quickly and a lot.

Some traders succeed in this, and over time they become professionals, while others lose several deposits and leave the market.

The thing is that scalping strategies are based on technical analysis, where indicators play a key role. It is the indicators that provide the trader with signals to enter/exit a trade transaction.

Of course, professional scalpers have their own sets of indicators, sometimes proprietary ones, or with certain parameters customized for themselves.

What should a novice trader do? There are several dozen indicators in the Metatrader 4 platform itself, not to mention the various paid and free products that the Internet is full of.

For help, we turned to the experts of the famous international broker NPBFX (NEFTEPROMBANKFX). The company’s specialists told us which scalping indicators you can start with, and also shared tips on how to use them effectively.

Scalping indicator ZigZag

You don't have to search for this indicator on the Internet, because... it is already built into the MT4 trading platform. Finding ZigZag is not difficult, just select the “Insert” section in the top menu, and in it “Indicators” => “Custom”.

The indicator works quite simply; it connects the most significant price extremes on the chart of a trading instrument with a straight line. At the same time, ZigZag filters out smaller price fluctuations. An important feature of the indicator is its versatility.

It can work on any market and time frame. It is important to understand that ZigZag is not a tool for predicting future price behavior. It allows you to analyze past events, indicating their significant changes. However, ZigZag is highly effective in assessing the current market position. Let's see what a technical indicator looks like on a price chart.

Please note that for the example we chose the one-minute time frame M1, which is most often used by scalpers. The ZigZag indicator on the basic settings quite accurately indicated the price extremes, where the price subsequently reversed. The trading strategy is quite simple. Buy or sell trades are opened when the indicator draws the next line. As a result, the trader can take his 3-10 points of planned profit from the market.

Despite its high efficiency, the ZigZag indicator has one serious drawback. It belongs to the group of indicators with redrawing. What does it mean. For example, if when the price fell, the indicator drew a line, and after some time the quotes fell even lower, then the line is redrawn. As a result, a trader, having opened a transaction, already sees a decent loss on it. To avoid this, it is recommended to open a trade when the length of the ZigZag line is at least 30-50 points, depending on the timeframe.

It is best to avoid high volatility in the market, for example, when significant economic publications are released. A calmer market is optimal for scalping. This will significantly reduce the likelihood of the indicator being redrawn. NPBFX broker experts also recommend using it in conjunction with one of the technical indicators. It is highly desirable that the second technical indicator be without redrawing. We will talk about one of these below.

You can stay updated on market events every day, receive investment ideas and accurate trading signals for free by becoming a user of the professional NPBFX . The portal is a unique IT development of the broker; it has wide functionality that is aimed at both beginners and experienced traders. The analytical portal is available 24/7 after registering an account on the broker’s website.

Stochastic scalping indicator

As mentioned above, the Stochastic indicator does not redraw the data, as ZigZag does. In addition, Stochastic refers to leading technical indicators, i.e. can warn the trader in advance about a price reversal. With this in mind, Stochastic is great for scalping. The indicator itself is also included in the basic set of the MT4 trading platform, but is located in the “Oscillators” section.

The main task of Stochastic is to show the trader how close the current price of an asset is to its highs or lows for a specified time period. The indicator has its own working field where data is displayed, as well as a value scale from 0 to 100 on the right. The oscillator area 0-20 is an oversold zone, and from 80 to 100 is an overbought zone. Two lines move inside the indicator field:

• %K – called the fast or main line. Usually has a red color. Represents a moving average over a shorter period.
• %D – slow or signal line. This is a moving average over a longer time period. In the basic settings of the oscillator it is green.

Now let’s look at how the oscillator generates the signals that we are interested in for scalping.

- Signal to buy. The fast line %K crosses the signal line %D from bottom to top in the oversold area of ​​the oscillator.

- Signal to sell. The %K line crosses the %D signal line from top to bottom in the Stochastic overbought area.

The strongest signal is considered when both lines, after crossing, begin to leave the overbought or oversold area.

We suggest now considering the use of the Stochastic oscillator in conjunction with the ZigZag indicator on the live market. We will use the same minute timeframe.

In four hours, there were 13 coincidences of signals on two oscillators, 5 signals did not match. If you carefully consider all the entry points, then everywhere the trader is guaranteed to exit transactions with a profit. We can confidently talk about 100% accuracy, at least in this market situation. Yes, five signals from ZigZag also turned out to be quite accurate and could bring profit, but this is an analysis of an already drawn chart. In a real market, when there is emptiness ahead, a professional trader will never open a trade if the signal is present on only one of the indicators.

At the same time, even 13 trades in four hours is a good profit. Let's do the math. If the average profit per trade is 3 points, then the trader will earn a total of 39 points. If each trade on the EURUSD pair was opened with a volume of 1 standard lot, then the total profit in four hours was 390 US dollars. But you can monitor two or three pairs at the same time, then there will be even more signals to enter a trade.

Conclusion

As you can see, you can effectively use standard indicators built into the MT4 trading platform for scalping. These are classic indicators that, if used correctly, will always give a positive result in the form of profit. Over time, you will learn to adjust your indicator settings, adapting them to different market situations to improve the accuracy of your signals.

When scalping, the role of the broker through whom you trade is also very important. In the above examples, you observed on the minute chart an excellent flow of quotes provided by the NPBFX broker. The company brings all transactions of its clients to the largest Tier 1 liquidity providers (world banks, ECN systems, etc.). Therefore, you will not see gaps in quotes on the M1 chart, which lead not only to incorrect operation of the indicators, but also to losses.

Opening a trading account for scalping with NPBFX (NEFTEPROMBANKFX) is not difficult; you just need to register on the company’s official website. Here you will also find many promotional offers from the broker that will really help increase your profits.