Don't know bout you guys, but if you look at Donchian channel nails trend changes better than Aroon up/down
Best Scalping Indicators
- Thread starter EDWINGENTNER
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Don't know bout you guys, but if you look at Donchian channel nails trend changes better than Aroon up/down
This is logical since Aroon uses Donchian channel (price MAX & MIN over a period). So by using Donchian directly you can make Aroon or any other derived indicator.
Not sure how you can get better reading by Donchian channel alone though, but with different periods you can have different sensitivity, with more or less false positives.
This is my thinking, early warning of trend change often gives false signals, however, more scalpers are not going to be buying Donchain breakouts anyway, going to go opposite. Shorter the timeframes, going to get more false trend signals for day trading but not scalping. But there are two ways among many ways to scalp and much of them don't rely on any trend.
As far as what is best trend in charting or indicators, that often a personal choice as in scalping, often times I am trading just noise around the "mean". Scalping for many I believe can't be done effectively cause making more than four ticks, is this still considered scalping? Scalping for me is best done one of two ways, keeping RSI between 60/40 and playing for chop, buy low/sell high, and in trend when RSI beyond 60/40 and only trade with trend which means wait for one or more bar retracements to buy low/sell high, occasionally you get more than 1-4 ticks on fast markets, I don't use protective stops nor limits, I hit bid/ask in futures so as not to show world what I am doing, in stocks/ETFs I use limits to give liquidity. I use background colors to show RSI values as my focus is on the Dom mostly, time and sales and what chart is saying. And all automated, am too old to watch it all, plus don't want to be sitting watching fly specs all day, plus now system can follow hundreds of instruments. Some of my scalping methods are risk & reward are small and others are risk is huge and reward much smaller, the huge risk offers very small number of losses but can be big is overall size and other systems offer higher number of losses, each designed to be traded for different times of the day. Size can be done early in morning whereas lunch and later, going for more consistency and yet smaller returns but many more trades.
As far as what is best, you study long enough, just about anything works as you train your eyes to hunt for least risk opportunities.
Scalping is one of the widely used trading strategies. Here a trader gives focus on short term investment to earn profit by small price changes; it can be within a minute. So scalping requires a good deal of analytical ability from a trader apart from scalping indicators. As indicators may take time to give you appropriate information regarding price changes especially in case of micro price changes,. However, I prefer moving average as an indicator for scalping strategy.
I agree. The only thing I need to scalp (the Forex market) successfully is the “right” combination of moving averages to take advantage of short-term fluctuations as interpreted in the context of longer-term trends—but it is all predicated on using moving averages that give me a precise and accurate read on present market conditions.
Moving Averages do nothing as to your scalping ability its best just to find the Lows or Highs and Hold On in there for a quite - Until Price as made some Progress in your Favour.
The best "indicator" for scalping is price itself (price action).
Try to look at support -, resistance -, supply - and demand zones. Those are intervals where price has reversed once or several times. Also pay attention to trend and momentum. Have candlestick patterns as an entry trigger combined with market structure. Practice all this in a simulator first.
Check out my blog about currency scalping if you want more info about this topic.
Best regards
Henrik Thorstensson
Try to look at support -, resistance -, supply - and demand zones. Those are intervals where price has reversed once or several times. Also pay attention to trend and momentum. Have candlestick patterns as an entry trigger combined with market structure. Practice all this in a simulator first.
Check out my blog about currency scalping if you want more info about this topic.
Best regards
Henrik Thorstensson