Best Indicators For Scalping

[wayfoward]

My spread betting account gives a list of chart indicators and overlays such as Bollinger Bands etc. Which indicators are best for scalping FOREX (EUR/USD) (EUR/JPY) and how do you choose / set the parameters? Below is a list of indicators and some extra paramaters available, what are the best settings for these extra parameters?

% Price Oscillator
Ima / tma / sma

Average Directional Index
period

Bollinger Bands
deviation / period

Chaikins Volatility
ma period / roc period

Expected Moving Average
period

MACD
Ima / tma / sma

Momentum
period

Momentum Percentage
period

Moving Average
period

Parabolic SAR
period / max period

RSI
period

Standard Deviation
period

Stochastic
%k / sp / %d

TSI
short period / long period

Two Expected Moving Averages
EMA1 / EMA2

Two Moving Averages
MA1 / MA2

Williams %R
period

If any or all answers are listed elsewhere in the forums please let us know as I gave up trying to find them. Any ideas and input is welcome!

 

[PATrader]

The best indicator there is -> candles

 

[rathcoole_exile]

is it GroundHog Day ?

 

[BataviaTrader]

I think the best indicators are the ones you want to be the best. It depends on what tales they are telling you, how you interpret them, your strategy, if they fit your trading style and personality and so on.

ex. there are traders (including scalpers) who swear by stochastics, they are wild about this indicator, and make good profits with it. Good for them but for me it does't work, because it does not fit into my trading style and also I cant get the clue of this indicator, i've bin using it for a while but I tossed it out.

You yourself have to find the optimal mix which indicators you gonna use. Advice: do not clutter up your screen with indicators. Less is best. Also, your list is nog complete, there are probably 100's more. So have fun finding the right ones!

Happy trading.

 

[timsk]

Hi wayfoward,

If you're looking for an indicator (the 'best' indicator) that gives simple signals to enter and or exit trades in a timely fashion so you can consistently extract profits from the market - then none of the above fit the bill as far as I know. Unfortunately, using indicators effectively is not as straightforward as many traders would hope or imagine and, indeed, many of them can create more problems than they solve. You need to understand how the indicator is constructed, what it is or isn't telling you, when and why it works and, most importantly of all, when and why it doesn't work. For an example of how to use an indicator effectively for a very specific job, check out this article by Trader333: Position Sizing as an Approach to Risk Management

If, (as I guess is the case) you're wanting to use indicators to assist you with entering and exiting trades, check out the threads by bbmac, here's one to get you on your way: Comprehensive Trading System/Methodology
Enjoy!
Tim.

 

[alexander]

You cannot scalp with lagging indicators. Must read tape. Only that can do it.

 

[wackypete2]

You cannot scalp with lagging indicators. Must read tape. Only that can do it.

There's absolutely no other way, right??


Peter

 

[shadowninja]

% Price Oscillator
Ima / tma / sma

Average Directional Index
period

Bollinger Bands
deviation / period

Chaikins Volatility
ma period / roc period

Expected Moving Average
period

MACD
Ima / tma / sma

Momentum
period

Momentum Percentage
period

Moving Average
period

Parabolic SAR
period / max period

RSI
period

Standard Deviation
period

Stochastic
%k / sp / %d

TSI
short period / long period

Two Expected Moving Averages
EMA1 / EMA2

Two Moving Averages
MA1 / MA2

Williams %R
period

I'm not a scalper but in my time over the years in an effort to try to profit from scalping, I've used all of those indicators... probably all at the same time at some point. The only time I've really been successful is when I've removed the damned lot including candles and just looked at lines.

PS EMA = Exponential Moving Average

 

[scalpman24/7]

I use 14.3.3 stocastic along with pivot points along with 20,50,200 ema
but my main indicator is my eyes,, looking at price in relation to the index and general market as well as knowing the direction of the trade in the first place.. then its a matter of breaking down the time frames. candles work for those that use em in that they can see more clear what the stock is doing but that is just under a trained eye.. you can have a trained eye with lines with ohlc bar alike its up to you the trader to find your way.

 

[PATrader]

then none of the above fit the bill as far as I know.[/URL]

Price is the best indicator there is.

 

[NVP]

My spread betting account gives a list of chart indicators and overlays such as Bollinger Bands etc. Which indicators are best for scalping FOREX (EUR/USD) (EUR/JPY) and how do you choose / set the parameters? Below is a list of indicators and some extra paramaters available, what are the best settings for these extra parameters?

% Price Oscillator
Ima / tma / sma

Average Directional Index
period

Bollinger Bands
deviation / period

Chaikins Volatility
ma period / roc period

Expected Moving Average
period

MACD
Ima / tma / sma

Momentum
period

Momentum Percentage
period

Moving Average
period

Parabolic SAR
period / max period

RSI
period

Standard Deviation
period

Stochastic
%k / sp / %d

TSI
short period / long period

Two Expected Moving Averages
EMA1 / EMA2

Two Moving Averages
MA1 / MA2

Williams %R
period

If any or all answers are listed elsewhere in the forums please let us know as I gave up trying to find them. Any ideas and input is welcome!

try them all ...............thats how you really learn to trade and what is (or is not) important :smart:

N

 

[BataviaTrader]

try them all ...............thats how you really learn to trade and what is (or is not) important :smart:

N

yeach agree, sometimes when bored I clutter up my screen to see what indicators look like when they are all mixed up just for the hell of it. Then I end up with what looks like a massive Picasso painting / modern art / aggressive chart-porn. Sometimes, trading must be fun too man.

 

[Armory]

No indicator training is what you need.

 

[Will Duxon]

I turned on my laptop an hour ago and saw that the four-hour chart structure of USDCAD was such that it made sense to me to enter a long position, which I did.

It then occurred to me that this might also be an opportunity to try the 5-Minute Forex Scalping Strategy with Parabolic SAR and MACD strategy that I'm curious about in real time (using a separate account).

If I'm interpreting the system correctly, a setup was indeed there, but I missed the correct entry level and the first target was almost already hit at that time, so I set my TP at the second target level:

 

[darktone]

Expected MAs are my fav, although ive heard the experts use nothing but linear regression and key time zones. Accuracy to 2 pips per lot!

 

[Fugazsy]

none, maybe the 20ema only