Without indicator scalping. From theory to practice
Unfortunately, many traders still debate and argue among themselves about the effectiveness of this or that market analysis tool.
One part of traders are adherents technical analysis While some traders only recognize indicators, others dive headfirst into fundamental analysis. However, there is a third category of traders who practice trading without indicators.
The most interesting thing is that, despite all the controversy, each tool and approach to market analysis is simply individual, regardless of trading techniques.
The only thing that remains constant in traders' minds is that scalping without additional tools is impossible on the Forex market, and as a result, it's virtually impossible to find strategies without using indicators to navigate market noise.
A logical question arises: is scalping on Forex possible without indicators, and what tools can serve as its basis?
You're probably wondering why indicator-less scalping is possible and can generate significant profits for traders, given that small time frames are often overwhelmed by market noise
The answer is quite simple: all trading, one way or another, is tied to working with the trend, which is present on all time frames.
Yes, on higher time frames the movements are larger and more sweeping, but no one has cancelled out micro trends, which have exactly the same structure and phases, only with the condition that there is a slight difference in scale and time frames.
Basic, indicator-free scalping. A simple set of tools
As we already noted in our introduction, the trend and flat are also present on small time frames, and the price behavior itself is practically no different from that on higher time frames.
Thus, scalping without indicators can be based on any patterns of price behavior during certain trading sessions and graphical analysis tools.
Using graphical analysis tools, you can actively receive signals from trend lines, support and resistance levels, channels and ranges, Fibonacci lines and levels.
Reversal patterns such as head and shoulders, double and trophy bottoms, double and triple tops, and cups and handles are also excellent for constructing scalping strategies without indicators.
In addition to reversal patterns in graphical analysis, a scalping strategy without indicators can be built on the basis of candlestick analysis, using such patterns as the hammer, the hanging man, three soldiers and three black crows, the belt grab, the morning and evening star, and so on.
For informational purposes, we will introduce you to a very simple indicator-free strategy called “Three Offensive Candles”.
Three-Advance Candle Strategy. Indicator-Free Scalping on M5
The Three Offensive Candlesticks strategy is based on the prototype of the Three White Soldiers candlestick pattern, but the strategy itself does not clearly specify the type of figure, and the main thing is that three white or three black candlesticks are recorded in a row.
More about candlestick analysis - http://time-forex.com/ys
Trading should take place on a five-minute chart, and any currency pairs are suitable for implementing the strategy, but instruments with high volatility are truly effective.
It's important to note that this pattern most often plays out at the start of the European or American trading sessions, while trading is strictly prohibited during the Asian session. So, let's move on to the strategy's signals and their implementation.
Buy signal:
1) Three consecutive bullish candles closed on the chart. It's crucial that the first candle isn't huge, as is common with news.
A buy position is opened only after the candle closes. It's worth noting that by default, the strategy doesn't apply either a take-profit or a stop-loss order.
So, if the price moves approximately 30 pips against you, you must either lock in the loss by placing a buy order of exactly the same volume, or simply fix the loss.
Exit from the market must be done according to trailing stop, which will allow you to extract the maximum number of items. Example:
1) Three consecutive bearish candlesticks closed on the chart. It's crucial that the first candlestick isn't huge, as is common with news.
As with purchases, a loss is fixed by opening a counter order of the same size if the price moves 30 pips against the trade. Exiting the position should be done using a trailing stop. Example:
In conclusion, it's worth noting that scalping without indicators has several advantages, as your signals will almost never be delayed, and you can even implement such strategies on your mobile phone!
