This question came in from a forex trader named Calvin.
I am currently trading forex and wish to embark on scalping. Which are the indicators and timeframe (1 min, 5 mins) that can be best used for scalping.
I don’t personally scalp, and never have. That much focus on the price action just isn’t something I could ever do, nor would I want to try. I’ve had related experiences as an analysts. It’s not something I consider much fun or very interesting.
That said, scalping is about positions which having holding periods measured in minutes – if that. Which chart one uses will depend on how long one is willing to stay in a trade (scalpers aren’t all made the same). The longer that is the long the bars (and don’t think one couldn’t necessarily scalp off a 30 minute or longer chart). If you really want to be in and out very quickly, then you’ll use the 1m charts.
Really, though, the bottom line is picking the one which provides you the best opportunities based on the way you’re going to trade.
As for indicators, my point of view is the best indicator is the one that works for you – or not using them at all, which is my own personal preference. RSI works for some people, but not for others. The same with Stochastics and moving averages and CCI and every other indicator out there. Indicators are nothing more than filters. Pick the filter you like the best and learn how it works and how to apply it.
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About the Author
John Forman, author of this blog, has traded for more than 20 years, is a professional market analyst, and authored The Essentials of Trading. He is an active participant in trading forums, consults for trading related businesses, as published literally dozens of trading articles, and has been quoted in a number of books and in the media.
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