The TTM Scalper indicator is a day trading indicator that may be used on the stock, options, futures, and forex markets. The TTM Scalper Indicator provides a visual representation of whether to buy or sell against a pivot level. The white Paint bar on the TTM Scalper Indicator indicates a “pivot high” or “pivot low.” This is done after three higher or three lower closes. The faster the affirmation, the faster the time frame. When you trade the market, the TTM Scalper Indicator measures the price action. You can also set alerts for white bars in the TTM Scalper Indicator.
What is the TTM Scalper Indicator?
The TTM Scalper Indicator is a technical tool that detects probable price flips and translates them into trading alerts. As a technical indicator, it can help you predict both short and long-term moves, allowing you to take advantage of strong price momentum. It detects possible price retracement levels during on-trend market circumstances using reversal patterns. Because TTM Scalper is designed for MTF chart analysis, it allows you to trade both day and intraday. Furthermore, it works on any financial instrument chart, including currencies, stocks, ETFs, commodities, and cryptocurrencies.
TTM Scalper Strategy
The TTM Scalper Indicator primarily detects price action reversals. It looks for probable highs and lows in price waves to identify valid price swing regions. Furthermore, it only plots colored bars over price candles to indicate reversal circumstances. Such signal systems are simple to understand and apply for inexperienced traders. In live markets, a price reversal indication can arise at any time. However, while considering an entry, traders ought to be very clear about price zones and indications. For example, looking for buy chances when the price has already reached the high of the current market momentum does not sound like a good idea. So, the main concept is to buy at the bottom and sell at the top of price increases. The candle’s blue vertical bar indicates a bearish reversal. The red bar, on the other hand, indicates a likely bullish price reversal.
Buy Signal
The following could be your checklist for a buy trade:
- When the asset is up trending.
- When a red vertical bar appears.
Once these events occur:
- You could open a buy position after a red vertical bar appears and you confirm your entry with bullish candlestick patterns.
- You could set your stop loss just below the nearest swing low.
- You could set your take profit at the nearest resistance zone, or you could exit trade when a blue vertical bar appears.
- For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
Sell Signal
The following could be your checklist for a sell trade:
- When the asset is down trending.
- When a blue vertical bar appears.
Once these events occur:
- You could open a sell position after a blue vertical bar appears and you confirm your entry with bearish candlestick patterns.
- You could set your stop loss just above the nearest swing high.
- You could set your take profit at the nearest support zone, or you could exit trade when a red vertical bar appears.
- For good risk management, I would only consider trades with a risk to reward ratio of at least 1:2.
TTM Scalper Pros & Cons
Pros
- The TTM Scalper Indicator assists the traders in identifying possible highs and lows on their charts.
- This indicator may also predict possible price retracement zones so that the traders could act accordingly.
Cons
- The TTM Scalper Indicator may sometimes interpret a trend correction as a trend reversal and vice versa.
- This indicator may require additional knowledge of price action to be able to utilize properly while minimizing mistakes.
- In default settings of the indicator, the red vertical bar signaling a BUY and the blue vertical bar signaling a SELL can be confusing.
Conclusion
The TTM Scalper Indicator is a simple and easy-to-use trading indicator. At the same time, it provides real-time price reversal signals, helping the trader possibly make more confident short-term trading decisions. Swing trading signals, as opposed to trend-following trading, may occur more frequently on the charts. As a result, it is good to employ extra technical tools like automatic trendlines and support/resistance to add value to your trade inputs.
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