Forex scalping indicators

On January 25, 2011 | By | In Indicators

There are some forex scalping indicators that can help traders to create an edge over the market by performing different functions to ensure a better winning possibility. Despite of that, the use of these indicators doesn’t guarantee secure profits as trading often depends on probability.

Among the main indicators we can highlight:

  • Parabolic SAR indicator: this indicator is a tool that can give us a trade entry or exit signal. The important thing is to see the PSAR flipping to the side of our favor when we would like to begin trading and exit whenever we see the PSAR flipping to the side against our position.
  • Stochastic indicator: the main aim of this indicator is to help us to prevent low winning probability trade, as there is no point in entering a long position when the market is already overbought. The stochastic indicator helps us to improve our trading accuracy by mapping out the current situation of the market. When 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. By using this indicator we will be able to predict the retracement of the market.
  • Pivot Point: support and resistance are the most important terms for a scalper. When the price hits a support or resistance  it has the possibility of been repelled, and this is what a scalper is looking for. The daily pivot point can help us to identify major support and resistance. The pivot point is so powerful because it is usually used by those commercial traders and thus has more significant than other levels. When we see the price getting closer to the pivot levels is time to take a look at the stochastic and PSAR for an entry chance.

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