Soheil PKO
A scalping indicator called Scalping Pullback Tool R1 on Trading View is explained. The indicator shows moving averages, PAC, fractals, and market structure changes. Pullback trading strategy is utilized by looking for pullbacks during an uptrend to buy, while during a downtrend, sell. To increase the probability of a successful trade, indicators such as RSI and stochastic oscillator can also be added for confirmation. Trading range can also occur during an uptrend when the price reaches EMA with a length of 89.
The Best Scalping Indicator: Understanding Scalping Pullback Tool R1
Introduction: Explaining the Benefits of the Scalping Pullback Indicator
Scalping in trading can be a challenge, especially for beginners. One way to make it easier is to use tools that can help predict and analyze market trends. One such tool is the Scalping Pullback Tool R1, which can be found on Trading View. In this video, we will explore the benefits of this indicator and how you can use it to your advantage.
Getting Started: Adding the Scalping Pullback Tool to Your Chart
The first step in using the Scalping Pullback Tool R1 is to add it to your chart. To do this, you need to click on “Indicators” and then search for “Scalping Pullback.” Once you find the tool, add it to your chart. The indicator is written by someone named Uncle L, and it can be a valuable asset in scalping.
Understanding the Components of the Indicator
Once you add the indicator, it’s important to understand its various components. By default, the tool has three exponential moving averages: a fast EMA (green line) with a length of 89, a medium EMA (blue line) with a length of 200, and a slow EMA (black line) with a length of 600. The tool also has a Price Action Channel (PAC) – a 34 exponential moving average based on close, high, and low.
Additionally, the tool has a feature that shows fractals, which can help filter out false signals based on noise. We also have the option of showing Market Structure changes, which can help in trading. The background of the chart changes color based on the current trend of the market, which can be helpful but can also be distracting. You can remove it in the settings.
Choosing the Right Candle Type
The calculations in this tool are based on Heiken Ashi candles by default. The author of the tool suggests keeping the chart set to Heiken Ashi candles. It’s better to follow this advice.
Understanding the Trading Strategy: The Pullback Trading Strategy
The Scalping Pullback Tool R1 is based on a pullback trading strategy. The idea is to find pullbacks during trends and enter trades in the direction of the current trend. When the price is above the PAC (blue candles), we look for buying opportunities when the price comes back to the PAC. Conversely, when the price is below the PAC (red candles), we look for selling opportunities when the price comes back to the PAC.
Identifying Trends with Moving Averages
The moving averages can help you identify trends from different perspectives. For instance, if the price is above the EMA 200 (blue line), we can say that the market trend is up. If the price is above the EMA 600 (black line), the market is considered bullish, regardless of short-term fluctuations.
Wait for Perfect Setups
It’s essential to remember that having just a few candles above the PAC is not a trading setup we should be looking for. Wait for perfect setups like those shown as examples in the video.
Using Indicators for Confirmation
Indicators such as RSI and stochastic oscillator can be useful for confirming the end of a pullback. For instance, when RSI crosses above its moving average when it and both of them are above 50, it can be an indicator of increased probability for a successful trade.
Conclusion: The Scalping Pullback Tool R1 Can Help Fine-Tune Your Scalping Strategy
The Scalping Pullback Tool R1 is a valuable asset in scalping. It’s essential to understand its various elements, such as the different moving averages it employs, the relevance of fractals, and how to identify meaningful trends. By using this tool, you can refine your scalping strategy and help increase the probability of a successful trade. Remember to exercise patience and wait for perfect setups. Overall, it’s a useful tool that can help traders anticipate market movements with more accuracy.
