New indicators for scalping. Part 111 min read
In 2018, more than 20 quality indicators for scalping and medium-term trading appeared. In this article, we will examine new indicators operating on new principles, with systems of money management and risk control.
The indicator accuracy is 8.25 / 10. Trading frequency is moderate.
Improved algorithm for constructing moving averages. The indicator builds 2 adaptive moving averages, with specified periods, the default is 220 and 50 bars. You can trade using only this indicator. Consider ways to trade with 3rdgenma:
M1: use periods of 240 and 60 bars. This will give an idea of what is happening on the hourly and 4-hour chart. The profitability of this strategy reaches 88%. The success of transactions is ensured by smoothing the trading signal. Input signals are rare, but their accuracy is very high.
M5: periods of indicators – 12 and 48 bars (the situation on the H1 and H4 graphs). The success of these parameters is 74%. Opening any currency pair, you will notice several good trading opportunities per day.
M15: periods should be only 16 and 96 bars. The performance of trade in these parameters increases to 90%.
How to trade?
We buy as soon as the short moving average has crossed the long moving average, we sell in the opposite situation. StopLoss should be placed under the local minimum, before the entry signal itself, as shown in the screenshot.
When re-crossing, against the deal, the order must be closed to open the deal, but now in a different direction. Obviously, the most profit can be extracted when trading on a minute chart.
Indicator accuracy – 6.25 / 10. The frequency of trading is very high.
The newest Avatar indicator works on the basis of two interrelated indicators, ATR and average ATR. As with moving averages, these curves intersect, forming depressions and peaks.
Scalping on the indicator is very convenient and easy. A small disadvantage is that the price can hardly change, during the whole trend. This happens for various reasons, mainly due to the presence of divergences. The indicator works efficiently, profitable transactions are up to 71%. This is not so much, but it gives you the opportunity to beat off up to 90% of the spread from each transaction, so you will only benefit from a large number of transactions.
I recommend using on the M1 timeframe and only, then the number of profitable transactions will interrupt the inaccuracy of the indicator.
How to trade?
We buy, if the blue line crossed the green line, we sell it under reverse conditions. Make sure that when buying the indicator line was at the bottom, and when selling – at the top. Stop loss should be no more than 8 pt. We take profits only by the opposite signal. This is a competitive strategy, thanks to which you can pull out good prizes.
The indicator accuracy is 9.75 / 10. Warning, banned by many brokers!
The indicator builds renko-charts in the basement window of the selected currency pair. The system allows filtering flat and noise, leaving only a clean trend. The downside of the system is that the graph is not tied to time and in a minute it can draw 10 bricks, and it can draw 1 in an hour.
How to trade?
Renko draws a bar every time the price goes 5pt one way. It is easy to notice that one bar upwards often lays the tendency for several bars of recoilless movement along a new microtrend. As soon as a bar appears, replacing the trend on the renko-chart, you need to open a deal in this direction, with a stop of 5 pt and a trailing stop of 5 pt. Take profit is not set, the transaction closes on the trawl. The number of trades on one currency pair during scalping reaches 5-10 trades, on 10 pairs – up to 100.
The profitability of the system at a risk of 4% per transaction can reach 400% per month, for which brokers do not like this strategy. Trade with a broker on an Instant account, this company even encourages scalping, and does not put a stick in the wheel for those who want to make quick money.
If desired, the size of the bricks can be changed in the indicator settings, but as practice shows, it is best to trade on Renko with a brick 5pt, not 1-2, as the bonuses of forum bonuses like to recommend.
Indicator accuracy – 8.0 / 10.
The indicator is somewhat similar to the good old ADX in appearance, it performs similar functions, but for this, 3 smoothed moving averages are used, built over specific periods (they are specified in the settings) and displayed in a separate window for convenience.
Consider the optimal settings when working with the system:
M1: set the periods 13, 21 and 34.
M5: you can use the same as for M1, or 12, 18 and 33.
M15 and higher: periods are set depending on the desired frequency of the signals. Best of all to apply 21, 34 and 55 – the average Fibonacci numbers.
How to trade?
Decide on the choice of the currency pair to work with, select the timeframe. Move the ATR 3LWMA indicator to the chart. Select settings for the indicator. You should work during the period of moderate volatility in the market, while an aggressive or too calm market is not suitable for trading by strategy.
Wait for the intersection of the blue lines to red, to open purchases and reduce the red line below the two blue – for sales. StopLoss is set to a local minimum or maximum before the formation of a signal. TakeProfit can not be used, as the closing of the transaction occurs on the opposite signal.
The development of a trading advisor trading in this strategy is underway.
Indicator accuracy is 3.5 / 10.
Very strange, but nonetheless, giving a profit indicator, working on a secret algorithm. The system is looking for a breakout point of the trading range, signaling the entrance to the transaction. In fact, the indicator does not show the exact signal, its task is simply to show where the support or resistance line was. If a circle or a dot is drawn at the bottom, set a level there, the next time you touch it, the market will most likely beat off and go in the direction of the signal.
Does not always work at small time intervals. It shows breakdowns on H4 and the daily chart. Indirectly acceptable for scalping. The resulting signal provides an understanding of where it is going to go to the market and for the whole day you will have a reference point for work. This system sometimes gave me guidance for even a week, but still the accuracy leaves much to be desired.
Try to use an adequate range setting (set in the input parameters). By default it is 100 pt, but on 5-digit accounts it will be 10pt, keep this in mind. By the way, the indicator works best on 4-digit accounts, and the floating spread is not confusing.
Disable the import of DLL, if you continue to trade with Forex-kitchens, you still do not earn there, and if the office finds out what type of trading you are using, the account can be closed. Trade only with honest companies.
Indicator accuracy – 7.0 / 10
An interesting way to convey the entire trading strategy in one indicator. If you take a closer look at the indicator window, you can see that its base is 2 moving averages (the distance between them will be OsMA), as well as two Bollinger bands, the top and bottom.
The indicator has a very flexible settings structure: you can change both the periods of the movings and the Bollinger algorithm, optimizing the strategy for the market.
Signals to enter the market are very accurate, and the effectiveness of the strategy is high. Use the strategy on the M5 time interval to get rid of the market noise of the M1 timeframe.
How to trade?
Attach a trading indicator to the chart of the M5 currency pair. You will see that there are areas in which white circles are replaced by red. Look at the current situation, wait for OsMA (circles) to drop to the level of the bottom line of Bollinger. Let the next circle be white. If so, open a deal to buy. When touching the top (blue) line, the transaction should be closed.
The sale transaction is done exactly the opposite. As you can see from the screenshot, the accuracy of the system is quite high, the transactions occur quite often, they are mostly completed successfully.
If desired, you can trade on the system on 8-10 currency pairs at once. In this case, you will be able to diversify risks, increase profitability and profitability. Active trading for 8 hours a day, on the M5 chart, using 6 currency pairs, at a risk of 2% per trade, yields a result of 80% per month, which strategies on daily charts cannot give.
Indicator Accuracy – – / 10
A useful indicator that calculates the euro index. In fact, the index of any currency is very important when working with cross rates, because then you can see the current expectations of traders from the market. The euro index is given by the formula EURX = 34.38805726 * EURUSD ^ 0.3155 * EURGBP ^ 0.3056 * EURJPY ^ 0.1891 * EURCHF ^ 0.1113 * EURSEK ^ 0.0785. The resulting value will be the euro index, but it is inconvenient to manually recalculate it manually, and it is important to see the trend. The indicator does everything for you.
How to use the indicator?
It is very easy to use EURX in trading. It does not give trading signals, but shows the strength of the European market. If the index grows, so does the European market. It would be wise to use these values to look for inefficiencies. If the index is growing, and the euro has not yet risen, then the chance for a currency growth is greatly increased.
EURX can be used as a component to the point of any scalping strategy. Today the market is volatile, but powerful indicators like this return an advantage. Be sure to keep in mind that the market is as efficient as possible at small time intervals, while on the daily charts the difference between the value of the currency and the index can be significant.
The screenshot above shows an example of working with the indicator. As you can see, from time to time there are still discrepancies. This can be used to trade any currency pairs with the euro or to trade a net 6E.
Indicator accuracy – 9.0 / 10. It is recommended to use only with scalping brokers.
An excellent indicator for scalping, which calculates the level of breakout points for a certain number of bars (12 by default). The algorithm draws red and blue dots: red points to the area to buy, and blue points to sales. Potentially, this system is designed for aggressive earnings in forex contests, but now some newbies have begun to use it simply to trade with the trend.
It is not recommended to use indicator signals at random, even with all its accuracy. Trade only in the direction of the trend. It is best defined on a minute chart using the moving average with a period of 60.
How to trade?
As already mentioned, this indicator draws signal points. If the price rises, you need to make deals only for the purchase. The percentage of profitable transactions in this case is 85%. The signal point is not formed immediately, but only after 1-2 bars. This means that the stop level must be placed under B. Williams’ fractal, it is standard in the MT4 terminal. Take profit does not need to be set, stop is traded in 5pt steps. If the price hits a stop, almost certainly, the market will change its direction.
The potential profitability of the strategy when trading on 6 major currency pairs on M1, with a risk of 5% per trade – 610% per month, with a possible drawdown of 40%.
Indicator accuracy – 3.0 / 10.
The scandalous indicator of 2018. Some traders claim that the indicator is completely useless, others that it is indispensable when trading Forex. Most likely, the truth is somewhere in the middle, because this is only a subjective opinion of several novice traders.
The indicator algorithm shows the change in the strength of the market with the help of “matches” directed downwards, or upwards, with green or red heads. The appearance of a match up indicates a rise in price, down – a fall. I consider this indicator as an interpretation of the real market situation. Strictly speaking, it does not signal, but only shows what it is. If you are looking for something exact, you will find it in our article.
Buy lower, sell higher, while looking at different time intervals for the selected currency pair. When working with this indicator, you can use 3 Elder screens: open 3 indicator windows with 3 different nearby TFs, for example, М1, М5, М15 and enter the market on М1-chart. Technical benefits really are not high.
Indicator accuracy – 7.0 / 10
The indicator works on a slightly modified tick volume algorithm. The system compares the number of buyers and sellers through the bull & bear power indicator, putting off this ratio on the volume chart. Knowing his algorithm, you can create a simple trading system that works on the simplified VSA method. The blue parts of the bar show buyers’ deals, and the red parts show sellers. It turns out that the prevalence of buyers suggests an imminent price increase and vice versa.
It should be borne in mind that the system operates at M15 and H4 time intervals. On smaller and larger TF, the market works efficiently and there is nothing to catch there. Trading on Sortvolume should be carried out only by the trend, since it is beneficial for large players to keep any one trend in the market.
How to trade?
There is no guarantee that the indicator will show the correct volumes tomorrow. Nevertheless, bursts in the market are most often accompanied by reversals or the end of a trend, and the attenuation only confirms that market participants are satisfied and do not want to change anything. In the middle of the interval present in the screenshot, you can see how a reversal occurs on a cluster of large volume.
There are no market volumes in Forex, but there are tick volumes that also work very well.
Indicator accuracy – 10.0 / 10
The high-precision indicator Squezze_ra works without redrawing, allowing you to aggressively scalp any trading instruments. The algorithm is rather complicated, but even looking at the oscillator you can see how to work with it.
The system draws red, pink, yellow bars with a downward trend. With a likely increase, the indicator turns green, blue and blue.
How to trade?
Market decline is accompanied by the transition of the oscillator to the negative zone. If the fall continues, the indicator turns pink, and on pullbacks – yellow. It is recommended to sell at the second bar, after the indicator enters the negative zone. We look at the screen.
For purchases, you need to open a deal when the oscillator goes into the positive zone. With the increase in prices, it will turn blue, and on pullbacks – blue. The transaction is closed on a pullback or in case of a reverse signal.