What are Top Indicators For Scalping
You can capture short-lived market moves with the aid of the best trading indicators for scalping. We should examine them.
● Bollinger Bands
● Stochastic Oscillator
● Moving Average Convergence Divergence (MACD)
● Moving Averages (MAs)
● Relative Strength Index (RSI)
Best 5 Scalping Indicators – Simplified Overview
Scalping requires quick decision-making and reliable indicators. Here’s a condensed guide to the top tools used by scalpers:
1. Moving Averages (MAs)
- MAs help identify market direction by averaging price data over time.
- Best for scalping: Use short-term MAs (5, 8, 13-period) on 1-2 minute charts.
- Signal: A 5-period MA crossing above a 13-period MA can signal a buying opportunity.
- Example: If the 5-MA crosses above the 13-MA at ₹100, it may indicate an uptrend.
2. Relative Strength Index (RSI)
- RSI gauges price momentum and potential reversals.
- Range: 0 to 100; above 70 = overbought, below 30 = oversold.
- Use for scalping: Look for divergences on short timeframes.
- Example: A weakening RSI while price rises could suggest a short opportunity.
3. Bollinger Bands
- These measure price volatility with a middle MA and two outer bands.
- For scalping: Price touching the upper band may indicate overbought; the lower band may signal oversold.
- Example: If price hits ₹105 (upper band) and moves back toward ₹100 (middle band), it could signal a short.
4. Stochastic Oscillator
- Shows price momentum relative to recent highs/lows.
- Settings: (5,3,3); values above 80 = overbought, below 20 = oversold.
- Signal: %K crossing above %D below 20 can mean buy.
- Example: A crossover under 20 may offer a long entry.
5. MACD (Moving Average Convergence Divergence)
- Tracks momentum via two EMAs (12, 26-period).
- Scalping tip: Look for MACD line crossing the signal line.
- Example: If MACD (-0.5) crosses above the signal line (-0.6), it may signal a quick bullish move.
Combining Indicators for Stronger Trades
- Trend: Use MAs.
- Entry: Confirm with RSI/Stochastic.
- Momentum: Crosscheck with MACD.
- Exit: Use Bollinger Bands.
Using these tools together can refine scalping entries and exits, helping improve accuracy in high-speed trades.