Elearnmarkets - Financial Market Learning
  • Courses
  • Webinars
  • Stories
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
Get Free Course
  • Basic Finance
  • Derivatives
    • Futures
    • Options
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Mutual Funds
  • Marketshala
  • Miscellaneous
Elearnmarkets - Learn Stock Market, trading, investing for Free
  • Courses
  • Webinars
  • Stories
  • Language
    • English
    • Hindi
    • Bengali
No Result
View All Result
Get Free Course
Elearnmarkets - Learn Stock Market, trading, investing for Free
No Result
View All Result
Home Technical Analysis
scalping trading indicators

Top 5 Scalping Trading Indicators

Vivek Bajaj by Vivek Bajaj
September 27, 2024
in Technical Analysis
Reading Time: 8 mins read
0
26.4k
VIEWS
Share on FacebookShare on XShare on WhatsApp

Scalping is a short-term trading technique that aims to profit from minute changes in stock prices during the day. We use scalping trading indicators to identify the entry and exit levels for scalping trading.

High-frequency traders, or scalpers, are those who make many transactions in a matter of minutes or even seconds.

Their goal is to profit from volatility, liquidity imbalances, and transient market inefficiencies. Scalping aims to build up a string of minor victories that, with the help of scalping trading indicators, can eventually result in a substantial profit.

You must be thinking now about how to do options scalping and which are the scalping trading indicators.

Let us discuss the top 5 scalping trading indicators:

Table of Contents

  • Top 5 Scalping Trading Indicators
    • 1. Central Pivot Range (CPR)
    • 2. VWAP (Volume-Weighted Average Price)
    • 3. Parabolic SAR
    • 4. Relative Strength Index (RSI)
    • 5. MACD (Moving Average Convergence Divergence)
  • Frequently Asked Questions (FAQs)
    • Which option is best for scalping?
    • Which indicator is best for option trading?
    • How profitable is scalping options?
  • Conclusion
    • Read More: All 35 Candlestick Chart Patterns in the Stock Market-Explained

Top 5 Scalping Trading Indicators

Here are the Top 5 Scalping Trading Indicators-

1. Central Pivot Range (CPR)

The Central Pivot Range (CPR) is one of the important scalping trading indicators as it helps in identifying key intraday support and resistance levels for the day.

Central Pivot Range (CPR)
  • Strategy: The market is probably going to be range-bound if the price opens within the CPR.
  • Options Scalpers: As the price moves between the TC and BC, they can search for rapid transactions.
  • Entry Point: Buy when the price breaks out of the BC and sell when it moves back toward the TC.
  • Exit Point: Aim for modest gains and pull out of the market before the price reaches the other side of the CPR.

2. VWAP (Volume-Weighted Average Price)

VWAP is one of the crucial scalping trading indicators that helps the scalper give a balanced view of price action. It combines the price data with the volume data.

Top 5 Scalping Trading Indicators 1

Strong volume breaking through VWAP can indicate a significant move in that direction. By employing VWAP as a trailing stop, scalpers might enter a trade in the direction of the breakout.

Confirmation: To lessen the possibility of fake breakouts, confirm the breakout using additional indicators such as volume spikes or momentum oscillators (e.g., RSI, MACD).

3. Parabolic SAR

The Parabolic SAR (Stop and Reverse) is a popular scalping trading indicator due to its simplicity in identifying potential entry and exits levels for scalpers.

Top 5 Scalping Trading Indicators 2

Entry-

  • Bullish Signal: When the Parabolic SAR dots move from above to below the price bars, it is a bullish signal to enter a long position. This suggests a possible change in trend from bearish to bullish.
  • Bearish Signal: When the dots move from below to above the price bars, it may be an indication that the market is about to turn from bullish to bearish. At this point, you should enter a short position.

Exit-

  • Turning SAR Dots Around: When the SAR dots start to reverse, exit the trade. For instance, when the dots shift from below to above the price bars when you are in a long trade, it’s time to exit.
  • Trailing Stop Loss: To trail your stop loss, use the Parabolic SAR dots. This permits trade while safeguarding profits.

4. Relative Strength Index (RSI)

Popular momentum oscillator Relative Strength Index (RSI) helps spot overbought and oversold situations, making it especially helpful as scalping trading indicator.

If you want to scalp, you can shorten the RSI duration (for example, to 7 or 9 periods) to increase the indicator’s sensitivity to sudden fluctuations in price. This makes it possible for speedier signals that better match the quick speed of scalping.

Short Time Frames: To detect swift movements, scalpers frequently utilize RSI on 1- or 5-minute charts. A brief trading opportunity may be suggested by a sharp increase or decrease in the RSI.

5. MACD (Moving Average Convergence Divergence)

The Moving Average Convergence Divergence (MACD) is one of the widely used scalping trading indicators because it can identify shifts in momentum and possible moments of entry or exit.

Strategy: To spot possible buy or sell opportunities, look for crosses between the MACD line and the Signal line.

Bullish Signal: A buy signal is generated when the MACD line crosses above the signal line.

A bearish signal indicates that you should sell when the MACD line crosses below the signal line.

Entry Point: With the goal of making a fast profit, enter the trade as soon as the crossover happens.

Exit Point: If you see that the MACD line begins to flatten or cross again, you should think about leaving.

Frequently Asked Questions (FAQs)

Which option is best for scalping?

While many scalper traders focus on forex and equities products, futures and options are also excellent venues to apply this potent tactic.

Which indicator is best for option trading?

Moving averages, Bollinger bands, the Relative Strength Index (RSI), and Moving Average Convergence Divergence (MACD) are examples of frequently used indicators. These indicators provide a comprehensive picture of the market and work in tandem with fundamental analysis.

How profitable is scalping options?

Most scalpers aim for success rates that are higher than fifty percent. The chances of a scalper making a profit are significantly higher than in conventional trades because of the tiny profit targets. Lower risk: Ultra-short-term trading horizons are taken into consideration while designing scaling techniques.

For market updates, visit StockEdge.

Conclusion

Even though options scalping trading strategy may appear difficult at first, you may become proficient at it with the correct advice. Keep in mind that there isn’t a one-size-fits-all approach to options scalping trading. There is no one scalping trading indicator that can ensure success.

Read More: All 35 Candlestick Chart Patterns in the Stock Market-Explained

Tags: basicenglishtechnical analysis
ShareTweetSend
Get Kotak Offer Get Kotak Offer Get Kotak Offer
Previous Post

What Is the Gearing Ratio? Formula & Calculation

Next Post

5 Momentum Trading Strategies to Ride the Market Waves Right

Vivek Bajaj

Vivek Bajaj

Mr. Vivek Bajaj has over 18 years of trading experience in equities, options, currencies, and commodity markets. He is the co-founder of Stockedge and Elearnmarkets and is passionate about data, analytics, and technology. He serves on various exchange committees and has played a significant role in the evolution of India's derivative market. He has been a speaker at various colleges and higher institutions, including IIT and IIMs.

Related Posts

Understand Slippage in Trading
Technical Analysis

What is Slippage in Trading? Meaning & Examples

March 28, 2025
387
Breakout trading strategies
Technical Analysis

Top 5 Breakout Trading Strategies

March 12, 2025
1.3k
5 stocks for today
Technical Analysis

5 Stocks to Buy Today That Could Beat the NIFTY in 2025!

May 5, 2025
468
Image describing What is marginal trading facility
Technical Analysis

 What is a Margin Trading Facility? Advantages & Risks

April 4, 2025
873

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer

Elearnmarkets (Kredent InfoEdge Pvt. Ltd.) is a SEBI-registered Research Analyst (RA) entity (SEBI Registration No.: INH300007493). The information provided in this article is for educational and informational purposes only and should not be considered as an offer to buy or sell any securities or investment products.

The stocks, securities, and investment instruments mentioned herein are not recommendations under SEBI (Research Analysts) Regulations, 2014. Readers are advised to conduct their own due diligence and seek independent financial advice before making any investment decisions.

Investments in securities markets are subject to market risks. Please read all related documents carefully before investing. Investing in Equity Shares,
Derivatives, Mutual Funds, or other instruments carry inherent risks, including potential loss of capital. Elearnmarkets (Kredent InfoEdge Pvt. Ltd.) does not provide any guarantee or assurance of returns on any investments. Past performance is not indicative of future performance.

Elearnmarkets Logo

Follow Us

Facebook-f X-twitter Instagram Linkedin-in Youtube Telegram

Register on Elearnmarkets

Continue your financial learning by creating your own account on Elearnmarkets.com

Register Free Account

Download App

Playstore logo
Download on app store

Categories

  • Basic Finance
  • Derivatives
  • Financial Planning
  • Fundamental Analysis
  • Technical Analysis
  • Mutual Funds
  • Miscellaneous

Popular On Elearnmarkets

  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Market Superheroes:
  • Vivek Bajaj
  • Chetan Panchamia
  • Ashish Kyal
  • Premal Parekh
  • Abhijit Paul
  • Jegan
  • Sivakumar Jayachadran
  • Jyoti Budhia
  • Vivek Gadodia
  • Vishal Mehta
  • Piyush Chaudhry
  • Santosh Pasi
  • Gomathi Shankar
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Courses:​
  • Options Trading
  • Dow Theory
  • Momentum Trading
  • Stock Investing
  • Harmonic Chart Patterns
  • Algo Trading
  • Elliot Wave Theory
  • Advanced Excel
  • Cryptocurrency
  • NSE Certification Course
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Webinars:
  • Bank Nifty Scalping
  • Intraday Trading Strategies
  • Options Trading Strategies
  • Options selling
  • Price Action
  • Relative Strength
  • Tax Planning
  • Options Buying
  • Growth Stocks
  • Portfolio Management
  • Risk Management
  • Renko Charts
  • Crude Oil
  • Traders Psychology
  • Moving Average
  • Multibagger Stocks
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Free Learning Modules:
  • Intraday Trading
  • Options Scalping
  • Swing Trading
  • Financial Modelling
  • RSI Indicator
  • Bollinger Bands
  • Pricing of Futures
  • Personal Finance
  • Initial Public Offerings (IPO)
  • Value Investing
  • Technical Indicators
  • Candlesticks
  • Chart Patterns
  • Option Greeks
  • ELSS Funds
  • Banking and Insurance
  • Real Estate
  • Gold
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Book Summaries:
  • Rich Dad Poor Dad
  • Psychology of Money
  • The Intelligent Investor
  • The Richest Man in Babylon
  • Think and Trade Like a Champion
  • Value Investing and Behavioural Finance
  • Trading in the Zone
  • Learn to Earn
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati
  • Tools:
  • CAGR Calculator
  • SIP Calculator
  • eLearnOptions
  • Future Value Calculator
  • Present Value Calculator
  • Atal Pension Yojana
  • Cost of Delay Calculator
  • Become a Crorepati

© 2025 Elearnmarkets. All Rights Reserved

  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling
  • Visit Elearnmarkets
  • Courses
  • Webinars
  • Financial Guides
  • Get Free Counselling

Download Our App

No Result
View All Result
  • Article Categories
    • Basic Finance
    • Derivatives
    • Financial Planning
    • Fundamental Analysis
    • Technical Analysis
    • ETFs & Mutual Funds
    • Marketshala
    • Miscellaneous
  • Language
    • Hindi
    • Bengali
    • English
  • Courses
  • Webinars
  • Stories
Get Free Course

© 2024 Elearnmarkets All Rights Reserved

A Handbook of Technical Analysis
To start your trading journey as a seasoned technical analyst
Download Guide For FREE
Trading Mentorship Program