Scalping Indicator MT4
Every forex trader aims to earn profit from the fluctuations in the market. There is no one-style-fits-all method of making your desired profit. Different traders adopt different strategies to achieve their aims; while some are patient enough to be long term traders, others are simply scalpers, who take their profits as soon as possible. However, to be a successful scalping, one needs to use scalping indicator MT4.
With a perfect scalping indicator, you can make more money by taking the little gains that come at a time. In the long run, these small profits pile to give you something massive. While this brings us to the special question:
What is scalping?
Scalping is one of the trading styles, with the sole aim of profiting from small price fluctuations within a short period. Typically, scalpers exit the trade quickly enough after profit is realized. This is trading style supports a large number of transactions like 100 intraday transactions and more in a short time.
It is a situation where a trader decides to open more than two trades with the sole aim of closing it immediately or after some minutes when little profits have been accumulated. However, this is possible with the help of scalping indicator MT4 for predicting price movement.
However, most successful scalpers are usually ones who have high experience. Every trader interested in scalping must understand the art. You may need to start with a long-term trading style and try to profit steadily. The intention being that scalping entails making swift decisions, fast reactions, and the capability to remain in a trade. To have a balance in trading, these traders need to make use of scalping indicator MT4.
The Simple Scalping Strategy:
The Simple Scalping Strategy was solely designed for scalping. It will help if you give it a trial, either on a 1 hour or 4 hour time chart.
This forex, simple scalping strategy is highly profitable when employed with a scalping indicator MT4.
The strategy for 1-minute scalping technique requires:
1. Stochastic Oscillator Indicator
2. 50 and 100 EMA (1 minute)
3. Your choice timeframe (1 or 5 minutes)
4. Profit maximum of 12 pips for 1 minute and 30 pips for 5 minutes
5. Maximum stop-loss of 3 pips for 1 minute and 20 pips for 5 minutes
Note: If you decide to make use of 5 minutes, consider 100 EMA and 200 EMA, positioning the corresponding take profit and stop loss.
Buying condition for 1 minute
The 50 EMA has to be above the 100 EMA for effective trade.
As the price moves close to the two EMA and your stochastic is just below 20, consider a buy option.
The 50 EMA has to be below the 100 EMA for effective trade.
As the price moves close to the two EMA and your stochastic is above 80, initiate a sell trade.
Other Technical Indicators for Scalping Strategies
You may decide to try out other technical analysis, here are other top technical mt4 indicators to help build your scalping confidence;
Exponential Moving Averages: these averages are biased explicitly to respond more sensitively to current price movements.
Moving Average Convergence Divergence (MACD): this indicator can be used for any timeframe for trading and helps in balancing 26 and 12 periods moving averages.
Bollinger Bands: these handy bands contain a massive majority of movements of the price. It helps predict when breakouts and trend reversals will take place.
Relative Strength Index: This is a momentum indicator that estimates strength and resistance levels using a 1 to 100 scale.
Advantages of Scalping
1. Allows a large number of trades opening
2. Fast-paced environment
3. Positions are held for a short time: indeed the right choice for traders who cannot wait for a trade to close.
4. Less exposure to risk
5. Scalping supports all timeframe
6. Less knowledge required to start, making it easy for newbies to fit in.
7. By not waiting long for a trade to close, chances of potential harmful reversals are minimized.
Disadvantages of Scalping
1. A trading loss can wipe out gains from several other successful trades.
2. A single trade can only yield a small profit, which may likely not meet a trader’s financial target.
3. Some forex traders think that scalping is less profitable when compared to a more extended position trades.
4. Market predictors and news releases can ruin your winning trade. Traders that ought to have ended well will turn out to lose a trade or even hit your stop loss.
5. Scalping needs discipline and attention, which many traders are not willing to offer.
Simple ways of being profitable in scalping
The scalper’s profitability is directly dependent on his ability to increase the number of profitable trades. Scalping differs from all other trading styles as they do not have the same ratio of risks and profitability in a transaction.
Scalping is fun and easy when you know your way around it. Although the market doesn’t change itself to favor anyone, hence traders will always try to find means of outsmarting the market. Haven said that here are specific rules to follow to make your scalping profitable.
1. If you must get involved in scalping as a newbie, start with small lot trading. There is always a temptation to trade big and have more significant profit, but this may not end as expected. Even still, get out of trades when it is not favorable. Do not forget that scalping is for disciplined and swift decision-makers.
2. Ensure to trade with a stop loss. The Scalping system is volatile; hence it would be a massive mistake if scalping goes wrong, and there is no stop loss. Carefully determine your risk to reward and put a stop loss on all trade.
3. Scalping is undoubtedly not the best way of trading. It is best to get trained on how to trade like an expert. With the use of the various strategies and methods, harness your trading skill.
Last Remarks on Scalping Indicator MT4
It is only expected that scalpers have strict rules for entry and exit since even one weighty setback can swallow up all previous small earnings made by the trader. Therefore, scalpers usually work with a specific set of tools and sufficient deposit size.
However, using scalping indicator MT4 as a tool alone for scalping is not just enough. As discipline is an equally important aspect due to the fast nature of scalping strategy. Also, the essence of the human factor in trading can never be overemphasized.
As a Scalper, learn the nuances of dealing with the best indicators and conscientiously carry out your trading duties. Regardless of your trading status, you can take advantage of several other indicators and tools available here on the platform via this link. Also next week we are going to publish an interesting Chandle Kroll stop article.
And of course, you can leave your comments and feedback about the Scalping Indicator in the section below on best mt4 indicators.