Scalping is one of the most popular short-term trading strategies. It attracts traders not only because of the ability to increase their deposit size relatively quickly, but also because of the very nature of trading. Scalping is still relevant despite the fact that cryptocurrency trading for beginners has become very popular today. It is the most reckless and emotional type of trading that requires complete immersion in the process and absolute concentration. To help those who practice this type of trading, several MT5 scalping indicators have been invented, which help to significantly increase its efficiency and profitability.
- A selection of the best indicators for MT5 scalping.
- Advantages and disadvantages of MT5 scalping.
A selection of the best indicators for MT5 scalping
Scalping is a special type of day trading where a trader looks to open and close trades quickly. Often the goal of scalping is to make a relatively small profit of a few pips. But due to the large number of transactions with different assets, the total daily profit that the market gives can be quite impressive.
A scalping trader must be well versed in the processes that take place on the exchange. It is extremely important to be able to analyze the order book, understand candlestick analysis, know the expanding triangle of the trade, and also have a certain market style. Along with this, he must be able to use various technical indicators that allow him to more accurately determine when to open a deal. For scalping, both generally accepted and special indicators can be used. In particular:
- Scalper MA;
- ATR 3LWMA;
- RSI Scalper uniform;
- BB MACD;
- Tick Chart Trader;
- Double Zigzag Zigzag etc
Some of the indicators presented demonstrate a very high efficiency. But, unfortunately, not all of them have been adapted for the MetaTrader 5 terminal yet. If we talk about indicators for MT5 scalping, then one of the most common among them is Currency RSI Scalper. It is an adaptive indicator that signals the right time to open a position. A buy signal is formed at the moment when the oversold level of an asset crosses the indicator line from bottom to top. If the market situation is the opposite, the indicator gives a sell signal.
Scalping strategies are often used in conjunction with tick indicators. They display in a separate window information about where the price movement is currently heading. Some tick indicators combine this information with trading volume within a single price bar, allowing you to make a more reliable prediction of future chart movement. One such indicator is the Tick Chart Trader, which shows the buy and sell price combined with a tick curve. This indicator can be used to improve the accuracy of when to enter a trade and features an oscillating curve below the main chart.
Another scalping indicator on MT5 is called “Beginner”. It displays local highs and lows on the chart with multi-colored dots, with the help of which it is more convenient for a trader to determine support and resistance levels. Beginner refers to gauges that can be redrawn, which makes it a bit more difficult to use. However, as an auxiliary tool for the scalp, it can be quite useful.
Advantages and disadvantages of MT5 scalping
Like any forex trade, scalping has its advantages and disadvantages.
- An opportunity to increase your deposit by 15-30% or more in one day.
- Intensive practical training in the laws and basic principles of stock trading.
- Complex fundamental analysis is not necessary.
- A relatively small initial capital is required for scalping.
- The ability to conclude dozens or even hundreds of transactions per day.
- The ability to earn money even in a calm market with low volatility.
- In a trading session, you can not only win a lot, but also lose a lot.
- High stress and emotional component of scalping.
- The presence of restrictions on the number of transactions per day for some brokers.
- The need to look for an instrument with a low spread.
- The need to trade with high leverage, which further increases the risks.
Scalping is a very popular type of day trading. Its essence lies in the conclusion of a large number of quick deals for a small profit. Today there are many indicators for scalping, some of which are compatible with the MetaTrader5 trading terminal. Among them are indicators for MT5 scalping such as Currency RSI Scalper, BB MACD, Beginner, Tick Chart Trader. According to reviews, scalping is capable of generating quite significant income, but the risks here are also great.