If you’ve installed Smart Trader Tools, you'll need to select Navigator in the trading platform toolbar and then right-click on the High-Low indicator in the menu. The High-Low indicator is a visual tool that traders attach to chart in either MT4 or MT5. How to use the High-Low indicator for scalping You may prefer something more tangible and clearly defined to base your trading strategy or to use in combination with the simple moving averages outlined above. The 5-period line then retests but fails to break above the 20-period line and moves lower once more, as does the EURUSD price. In the chart above, you can see the faster moving 5-period SMA line in red crossing down through the slower moving 20-period line in blue in the middle of the chart.

A shorter term and more sensitive moving average such as a 5-period SMA.Ĭomparing the two SMAs provides short-term clues about the likely path of EURUSD price action or any other instrument.

A 15-period Simple Moving Average (SMA) which plots the average closing level from 15 separate and rolling periods and.

For example, you may choose to plot a 5-minute EURUSD chart with two moving averages. To help define your scalping strategy, you’ll want to use a set of indicators.

Of all trading strategies, scalping is the one that needs to be systemised because it lives or dies by the trader's ability to minimise losses and carve out small profits on the majority of their trades.

Today's trading platforms provide retail and professional clients with functionality to rival the systems used by institutional investors, and these platforms are offered to our clients, free of charge. Online trading via what's known as Direct Market Access or DMA has become increasingly popular over the last two decades. How the Simple Moving Average can help you scalp the markets In this guide, we’ll share the two simple ways to help you create a scalping strategy using the Simple Moving Average and the High-Low indicator. Scalpers will aim to have more winning than losing or scratched trades by a multiple of approximately 2:1, though that ratio could be lower in some circumstances. This is done through a process known as scratching trades which closes non-performing trades for a flat or minimal loss. Scalping also means keeping any negative P&L from losing trades to the lowest possible amount. If you work full-time be aware that it's a style suited to those who are willing or able to get up early or stay up late and trade around various market openings, for example, Japan open, London open, US open, Australian open etc.

If you choose to become a scalper, you‘ll need to dedicate several hours a day to trading. This trading style is a low (profit) margin, high volume strategy that requires attention and dedication.

Scalping strategy mt4