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What indicator you use for scalping?

Don Pablo (Antonis94)
Jan 05 2016 at 09:17
posts 10
JacoAF posted:
JenalAripin posted:
I use daily SMA in 1m-15m time frame. And just like what Apip said, you gotta focus yourself watching those charts for a while. You may want to use EA for scalping but I've never done that before...


Hi Anatonis, we meet again :)

Well that question is quite a broad one. You get various type of technical indicators.

Trend indicators are the most popular, i.e. Moving Averages, Stochastic Oscillator, MACD or the RSI. These basically give you two types of information, A) the TREND direction of the market (is the market going up - Bullish; or is the market going down - Bearish; or is market moving sideways - Neutral) and B) the momentum of the market (how fast of slow the market is moving in that direction).

Another popular type of indicator is Volume/Volatility indicator, i.e. ATR and Bollinger Bands. These indicators show you the participation rate of traders in a particular market at a particular time. For example during a US Non-farm Payroll event the market will be highly volatile and make fast, wild swings in both directions. The Bollinger Band is used to determine optimal entry after such an event.

The one thing you must remember about any technical indicator, is that ALL indicators are lagging indicators. This means that your trading software calculates an indicator's values using a certain amount of previous candles/bars. For this reason a technical indicator by itself is not of much use to a trader. You have to use them in combination with other tools like Support and Resistance levels, Fibonacci levels and Candlestick formations. For example, if the market is near an important historical Swing-High or Swing Low, which is also near an important Fib level (like the 62% or 38% retracement levels) and you see an Engulfing Candlestick pattern, then your RSI or Bollinger Band indicator is used to confirm your entry or exit of your position.

To sum up, technical indicators are nice to use, look pretty on your charts and give you some degree of confidence in your trading, but if used and applied incorrectly it can result in a disaster. So you have to understand how and when to use them for them to be effective in your trading strategy.

If you really want to learn more about how to use technical indicators correctly, then let me know, and I will send you a few PDF's of manuals I wrote myself, and use in my FX Training business teaching new traders in my local area. From your previous posts here you seem quite excited and willing to learn. Perhaps you will find some of the info quite useful. I must warn you, there is ALOT of info to go through, so be prepared to sit and read for a few weeks... :)

Cheers

Jaco Ferreira


thank you Jaco ,firstly thats true im really excited and willing to learn everything a trader should know, what you just sent me its really helpful,i would love if you could send me anything you have in regards trading,again i appreciate your time and help

Furax
Jan 05 2016 at 09:22
posts 92
no indicator needed, only price market... so price action.

On entend l'arbre qui tombe mais pas la forêt qui pousse...
kieran (snapdragon1970)
Jan 05 2016 at 10:37
posts 1945
I use BB and major support areas,there is no centralised volume in forex,only on your own trading platform provider,it's unreliable information.

"They mistook leverage with genius".
Furax
Jan 05 2016 at 10:45
posts 92
Agree with you Kieran :
Price action confirmed with BB.
The line orange and blue you can see here is a BB ...



You can find my settings available for M30 and H1 and more.





Fichiers joints:


On entend l'arbre qui tombe mais pas la forêt qui pousse...
kieran (snapdragon1970)
Jan 05 2016 at 11:11
posts 1945
There is a useful measure of % long /short on IG ,for example if it showes 80% are short and typically 90% of retail pick the wrong direction,makes for an interesting trade idea in the opposite direction.Of course I look for further evidence of a possible trade but it is worth taking note of.

"They mistook leverage with genius".
Furax
Jan 05 2016 at 11:26
posts 92
snapdragon1970 posted:
There is a useful measure of % long /short on IG ,for example if it showes 80% are short and typically 90% of retail pick the wrong direction,makes for an interesting trade idea in the opposite direction.Of course I look for further evidence of a possible trade but it is worth taking note of.


Using this kind of strategy in demo here :

https://www.myfxbook.com/members/Furax/ut-v102-aquarius-fxpro/1456800

Scalping in action with BB as you sayed before Kieran :



Broker FxPro with some InstaForex indicators...

https://www.myfxbook.com/members/Furax/ut-v102-aquarius-fxpro/1456800

Fichiers joints:


On entend l'arbre qui tombe mais pas la forêt qui pousse...
kieran (snapdragon1970)
Jan 05 2016 at 11:46
posts 1945
I specialise in Eur/Usd only,sometimes I trade the DAX ,what provider is that ?

"They mistook leverage with genius".
Don Pablo (Antonis94)
Jan 05 2016 at 12:05
posts 10
Furax posted:
no indicator needed, only price market... so price action.


Thank you Furax for your response,so an indicator is not necessary for trading ?i mean its not like an obligation for a trader to use indicators in order for him to gain a profit?thank you

BellaVista507
Jan 05 2016 at 13:35
posts 251
Furax posted:
no indicator needed, only price market... so price action.


 I agree with you... If you student of forex, and you study price action, then no indicator could ever trump that. I've seen here that it has been mentioned that BB give guide you very well on entry. I, however, believe that isn't true. Understanding why the market breaks out, and why it 'goes flat' is the start of knowing how to use price action and only price action.

Jaco Ferreira (JacoAF)
Jan 05 2016 at 14:10
posts 130
BellaVista507 posted:
Furax posted:
no indicator needed, only price market... so price action.


 I agree with you... If you student of forex, and you study price action, then no indicator could ever trump that. I've seen here that it has been mentioned that BB give guide you very well on entry. I, however, believe that isn't true. Understanding why the market breaks out, and why it 'goes flat' is the start of knowing how to use price action and only price action.


What you says makes sense, however, I don't believe that using only price action as a tool will give you the best advantage to find the best high probability trades. If you know how to use the RSI or MACD and combine that with Market Structure (Support and Resistance), Fib Levels and Candlestick Formations you can get higher quality trades that will give you the best Risk/Reward ratio.

I must confess, I am a short term swing trader (manual), so my technique may work best on my style of trading. Scalpers may find using raw price action a more effective alternative. However, I would not advise new traders to attempt scalp trading manually if you don't have plenty of experience analyzing price action. I think the emotional stress alone of the fast paced nature of scalp trading will probably kill new trading accounts quickly.

Keep it simple, be disciplined, get rich slowly and above all protect your equity!
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