The Best Indicators for Scalping on Short Timeframes
When starting a scalping strategy, the question of entry points usually arises immediately.
It's practically impossible to use fundamental factors here, as it requires considering not only the trend but also any subsequent pullbacks.
In this case, you can rely on your intuition or trade based on visual analysis, but scalping indicators are the most effective, as they make short-term trading more effective.
Scalping indicators are technical analysis tools that work correctly on the shortest time frames, providing market entry signals.
Their most effective use is noted on timeframes such as M5 and M15; when trading on M1, it is technically difficult to use indicators, but it is still possible.
The most suitable indicators for short-term scalping
Stochastic Oscillator.
The well-known Stochastic Oscillator tool allows you to find favorable entry points based on overbought and oversold zones. This script has been included by default in the MetaTrader trading platform for over 10 years, making it easy to use:
Stochastic works great on any timeframe, making it ideal for scalping. It's ready to use immediately after adding a currency pair or other asset to the chart, requiring no additional settings.
download Stochastic and get full information on its use at the link provided.
The arrow indicator
is also ideal for both scalping and pipsing. To use it, simply download the tool, install it on the chart, and wait for arrows to appear on the desired timeframe—in our case, M1, M5, and M15.
Moreover, the appearance of an arrow pointing in the opposite direction from an open trade can also serve as a signal to close a previously opened position in the opposite direction.
Download the arrow indicator to learn more about it.
Channel Forex.
In principle, not only this option but also any other script that defines a price channel is suitable, as long as it clearly identifies support and resistance lines. Trading is conducted according to the same general principle, regardless of the time period:
Buy at the bottom of the channel and the beginning of an upward movement, sell at the top and the beginning of a downward movement. This scalping indicator is slightly more complex than the previous options, but it still produces good results.
Download Channel Forex to learn its description and basic settings.
Not all brokerage firms welcome short-term trades, and some even limit the maximum number of orders. Therefore, it is recommended to use scalping brokers .
If you wish, you can try using other Forex indicators for scalping trading, but remember to set the time frame correctly and avoid using long history for analysis when working with the selected instrument.
