If you’re a day trader who loves scalping the market, you must have your own unique strategy. Even when filters are used, the main indicator is still needed for any strategy to signal entry and exit points in the market. Scalping systems have gotten better over time thanks to the development of many different algorithms and indicators. One example of such an indicator is the Premium FX Scalper Indicator.
Just under the chart, you’ll find the histogram that makes up Premium FX Scalper. The bars of the histogram are colored red and green. When the market is trending downward, the histogram turns red, whereas when it’s trending upward, it turns green. In addition, the price chart comes with a built-in information board that shows, among other things, a percentage representation of the trend’s strength. The Premium FX Scalper indicator also calculates the stop-loss and take-profit levels on its own, which makes it much easier to use.
What is the Premium Fx Scalper Indicator?
Premium FX Scalper is more than just an indicator; it’s a whole trading system that helps you simply find entry points and gives guidelines when setting stop-loss and take-profit orders. The indicator applies to all currency pairings (majors, minors, and exotics), but it mostly performs well on currency pairs like GBP/USD, EUR/USD, USD/JPY, and GBPJPY.
The indicator is designed to predict changes in market prices and then generate signals for traders. Furthermore, the indicator is programmed to disregard choppy market fluctuations (when there are no vast movements in the Forex market prices). You may use the Premium FX Scalper indicator to enter and exit trades, as well as to detect and avoid short-term trends. The indicator is most useful for scalping during the New York and London trading sessions.
Premium Fx Scalper Strategy
For this strategy to work, the trader must be able to notice when the color of the bar changes. Histogram bars are presented in both red and green to indicate data status. The color changes represent the signals. A sell signal is indicated by the red signal lines, while a buy signal is indicated by the green lines. In the histogram, a shift from green to red on the bars indicates a potential buy trade, and vice versa. Follow the indicator’s signals or use the most recent highs and lows in the zone to figure out where to set your stop-loss and take-profit orders. No trading should be done if the histogram of the indicator shows uniformly sized bars, since this implies no clear trend in price.
Buy Signal
- First, the trader must identify whether the market is in an uptrend.
- Once at least two green color bars/line forms, the trader may then place a buy-entry order
- Close the open buy trade when the opposite signal appears or as indicated by your money management strategy.
Sell Signal
- The trader must first determine whether the market is in a downtrend.
- The trader may then place a sell entry order when at least two red color bars or line forms.
- Close the open sell trade when the opposite signal appears or as dictated by your money management strategy.
Premium Fx Scalper Indicator Pros & Cons
Pros
- It is effective for scalping and day trading.
- It does not repaint.
Cons
- It generates several misleading signals in ranging markets.
- It is not suitable for swing trading.
Conclusion
The Premium FX Scalper Indicator’s ease of use and non-repaint feature make it a frontrunner among histogram indicators for scalping the forex market. It is best used on lower time frames (M15 or less). Always trade in the direction that is in line with the overall trend, and until you have a solid grasp on this indicator, you should get some experience trading on a demo account first.
Another important thing to keep in mind when scalping the markets is you need suitable broker conditions. For the best possible trading conditions if using a scalping strategy, I would be looking at an ECN broker such as IC Markets. This is because they have tight spreads, low commission fees and quick trade execution speeds.
Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more. I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me.
