Free Scalping Indicator
Free Scalping indicator spots best day trading conditions in your MT4 chart. It detects trend reversals & points entry/exit positions of short-term trade entries.
Description
The Free Scalping indicator is an open-source forex and stock day trading tool developed for the MT4 platform. It generates simple chart demonstrations of short-term changes in market trends that enable beginners to anticipate day trading opportunities like a pro.
Technically, the Free Scalping indicator is best known for smoothing the uncertain spikes during choppy and overly volatile market conditions. Most traders predominantly suffer from the random switch of price trend structures while day trading. So, before entering an order, a trader must be aware of momentum stability and the precise trend direction of the price.
Once you launch the Free Scalping indicator in your MetaTrader 4, it’ll automatically start tracking the trend changes of your favorite financial assets.
This guide explains how to apply the Free Scalping indicator for assessing profitable trade setups in MT4 platforms.
How to use Free Scalping indicator in MT4 for determining precise trend signals
As you can see in the above EUR/USD M15 chart, the indicator plots a simple cloud in two different colors for demonstrating the trend status. The yellow bars signal a bullish trend. On the other hand, the red bars indicate a bearish trend condition.
The cloud changes its color depending on the positivity/negativity of the trend index value calculated by the indicator. The cloud’s color swaps between yellow and red define a trend reversal situation. For instance, the indicator bars turn yellow, and moving higher from the zero level signals a bullish trend reversal. Contrarily, we’ll consider a trend as bearish when the bars appear red and keep declining below the zero level.
If you compare the highs and lows of the bars, you’ll be able to identify the strength level of the current market trend. For example, the bars constantly close higher, and a positive value signals a solid bullish momentum behind the current price trend. Contrarily, a red cloud keeps making new lows indicate a stable downtrend condition.
The cloud moving above or below the zero line are the best periods to look for a buy/sell opportunity. When you decide to enter during a trend reversal situation, you can catch a trend from a very early stage. Also, it increases the potentiality of earning a better profit margin. We recommend that traders hold an entry until the free scalping bars signal a potential trend change to enjoy a greater reward against the risk.
Conclusion
The Free Scalping indicator has an innate ability to transform simple moving average data into super trend reversal signals. Moreover, it perfectly suits any trend-following forex or stock trading strategy in the MT4 platform. If you have an existing trading system you want to upgrade, the free scalping indicator can be an ideal option to merge on. Alternatively, it alone produces great results when applied alongside support/resistance and moving average indicators.