Indicators For Scalping, please post here
Dear Forex Experts, who have experiences in scalping, let's share and discuss the method. And maybe you use your special indicators ? What are the best setting for them ? I wish this would help everyone who wants to learn scalping...
OK, you can post here, please.....
Last edited by iinzall; 08-18-2007 at 10:25 PM.
what is "scalping" ?
I know what it is with sports tickets but not when it comes to forex
I think it is short term trading on steriods. Really short term....like opening and closing trades in minutes.
Yes, that's right yolybear, something like that. We take an open position then close it when condition changes in short term. And Scalping trading usually use small TF, like 1M and 5M, and it's really difficult for swing traders to do this, cause they usually use big TF like 1H above...
If you have the right broker and the right strategy for scalping, you can do pretty well.
You asked for an indicator. Let me post you some pictures.
To get the info as where this indicator can be found you have to email me at firstname.lastname@example.org
The yellow dots represent "support area"
The purple dots represent "resistance area
The red dots represent "sell signal" and they are also used to indicate where stop should be (usually few pips above the reddot)
The blue dots represent "buy signal" and they are also used to indicate where stop should be (usually few pips below the last blue dot)
You sell when red dots are close to the purple dots (meaning: you sell at a solid resistance point)
You buy at the yellow line if the dots are blue (you are buying at the support level)
I don't know if there is anything easier then this for scalping or for getting 10-50 pips a day with 3-6 trades per day.
Yes, the indicators are very nice, why don't you just share them here, so we can learn and discuss them...
Ok, i have sent you my e mail...
thanks my friend...
I think that there are some errors here regarding the idea of scalping.
Scalping can involve large lots (positions) and any time frame.
The essence of scalping is that you only profit a few pips, such as 1-5 pips.
By using a large position it is still possible to profit well............but............the majority of brokers will want to shut you down.
How is this done?
It is automated and written in the computer language code of the charting program.
I am not a computer programmer but, in simple language, it goes something like this.............
If trade large
If trade positive
If pip gain small
trade close signal=NO SIGNAL
ie, your charting program friezes.
I do not use indicators for scalping - I do not use indicators at all. Instead, I am a candlestick trader. When I shifted from indicators to candlesticks, I stopped making repeated losses and, for the first time, started to make real profits.
I scalp (but prefer to let my trades run) using candlesticks.
I use a broker that permits scalping.
Regards, Tymen Wortel, Perth, Western Australia.
Last edited by tymen1; 08-20-2007 at 10:57 AM.
I agree with Tymen's explanation about scalping, sorry guys, for my wrong explanation about it.
Originally Posted by tymen1
In my opinion, candlestick is an indicator too. may be you can share your experience here, so we can learn more deeply about the candlestick in scalping, if you don't mind, please.
To Iinzall :
My scalping candlestick approach is still under development but it basically uses 3 strategies :........................
1) Recognizing the appropriate candlestick pattern.
This is obvious.
2) Trading ONLY those candlestick patterns that appear on or above the Bolinger bands.
In this way you are trading an extreme and, if the price action has been walking the bands to some extent, then, when the pattern appears, a change is anticipated, ie price is expected to move into the centre.
For example, the evening star pattern seen on the upper Bolinger band.
3) A staged entry.
The position size is divided into 2 or more parts.
A first entry may, if so desired, be made as soon as the first new candle after the pattern appears.
Then, using a 1 minute chart, aided by its own Bolinger band and a MACD, we watch...................
a) If the trade goes the right way (into the centre), we profit.
But this profit may be only a few pips, say 10, or 5 after commission.
Therefore we use quite high leverage (standard lots) and maybe two lots.
We then get a suitable profit.
b) If the trade goes against you, then the 1 minute chart with MACD and BB comes into play.
We watch for the price action to reach its total extreme, then do a 2nd entry.
The computer now averages the 2 entries to give one good entry.
Being at an extreme, the price now is expected to reverse to the centre - the probability of it doing so is very high.
So down it goes, not much though, and we collect the profit as before.
NO STOP LOSS (disaster stop only). The Bolinger band acts as a "stop loss" in that it limits price action extremes - have you ever seen price action go past 3 standard deviations??!!
We can let our profit run onwards into more candles and so make more pips, say 20, under suitable conditions.
So far, I have had only one loss with this approach, but I want to stress that this whole idea is still under development.
I use a whole range of time frames from 20 mins to 1 hour to get sufficient patterns - plenty so far.
Finally, a suitable broker is needed to be able to trade like this.
Kind regards, Tymen Wortel, Perth, Western Australia.
Last edited by tymen1; 08-21-2007 at 02:59 AM.
Sorry, for my late answer Tymen, cause the electricity in my place is always off once a week .
I really interested in your method, cause actually i learnt about candlestick too several months ago, but i change then, and use some indicators in my trading way.
You said that you combined BB and MACD, what are their setting ?
I guess if you have time, would you add some screenshots to make it easy to understand.
"Argue for your limitations, and sure enough they are yours."