As a trader, the search for the most accurate scalping indicator is never-ending. With so many tools available in the forex market, it can be overwhelming to determine which indicators are effective and profitable. However, as a professional forex trader, I have developed a scalping strategy that has given me consistent profits, thanks to my go-to scalping indicator on Tradingview.
My scalping indicator of choice is the Trading Armour, Ichimoku Kinko Hyo. Originally from Japan, this indicator is a versatile tool that has gained popularity among traders around the world. Ichimoku Kinko Hyo is a Japanese phrase that means “one glance equilibrium chart” or “instantaneous balance chart”. This tool comprises of five lines that provide support and resistance levels, trend direction, and momentum signals.
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2. Kijun-sen (Base Line) – This line represents the average of the highest high and lowest low over the last 26 periods. This line provides stronger support and resistance levels and confirms the trend direction when it aligns with the Tenkan-sen.
3. Senkou Span A (Leading Span A) – This line is formed by plotting the average of the Tenkan-sen and the Kijun-sen and shifting it forward by 26 periods. This line acts as the first support or resistance level and provides insights into the trend strength.
4. Senkou Span B (Leading Span B) – This line represents the average of the highest high and lowest low over the last 52 periods and is shifted forward by 26 periods. It acts as the second support or resistance level and helps traders identify potential reversal points.
5. Chikou Span (Lagging Span) – This line represents the current closing price, shifted back by 26 periods. It provides confirmation signals and helps traders identify trend reversals.
Ichimoku Kinko Hyo offers a comprehensive view of the market, providing insights into potential support and resistance levels, trend strength, and momentum signals. I use this indicator as a support tool to identify potential trade opportunities in a highly volatile market such as scalping.
Apart from the Ichimoku Kinko Hyo, I also rely on other indicators to confirm trade signals. My trading strategy involves combining Ichimoku Kinko Hyo with the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) to confirm trade signals and minimize risks.
The RSI is an oscillator that measures the strength of price movements and whether an asset is oversold or overbought. I use RSI as an additional confirmation tool to find potential entry and exit points for trades. When an asset is overbought, I look for an opportunity to sell, and when it is oversold, I consider buying the asset.
The MACD is a trend-following momentum indicator that provides insights into the strength and direction of an asset’s price. When the MACD lines cross over the signal line, it signals a potential reversal point. I use this indicator as an additional tool to confirm entry and exit points for trades.
In conclusion, scalping in the forex market can be a profitable strategy, but it requires the right tools and knowledge. The Ichimoku Kinko Hyo, coupled with the RSI and MACD, has proven to be an effective and reliable indicator for me. However, it is essential to note that no indicator guarantees profitable trades, and traders must always conduct thorough market analysis and risk management to minimize losses.
