Moving averages for scalping forex
Some of the most commonly used forex indicators for scalping are the simple moving average (SMA) and the exponential moving average (EMA). These can be used to represent short-term variance in price trends of a currency.
Honestly, It doesn’t matter whether you are a long term trader or part time trader. But the fact is that if you have the right trading strategy for the trading approach you are following. If you don’t have, it’s not recommended for you to enter trading because Forex trading is such a thing that can fully destroy you.
Well, moving average is a commonly used lagging indicator in forex. But they are effective for scalping strategies. It is the most simplest and basic indicator that a scalper can use. But I suggest using MACD more as it helps not only following trends but also in capturing them in time. The problem with SMA is that their signals are often delayed and that is why MACD is a better choice in my opinion.
I use the RSI and the MACD indicators together for scalping along with the SMA indicator for scalping. I use The RSI and the MACD to help me maintain or close a position. I use the SMA for confirmation and any price movements that are likely to change direction.
In my experience I will say that EMA is the best indicator for scalping. It is fair enough to say that EMA reacts to recent price changes more quickly than to previous price changes. This technical indicator is used by traders to find buy and sell signals that result from historical average crossovers and divergences.