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Discard the dross and select the essential : Trend Scalp Indicator

The Trend Scalp indicator is a comprehensive calculation of the fast and slow lines of MACD and KD (Stochastics) Indicator. This indicator was first published in a well-known technical analysis magazine in the United States, mainly for scalping strategies. However, we have made some modifications to Trend Scalp’s philosophy, parameters and algorithms. The special feature of the Trend Scalp indicator is that it integrates the characteristics of the KD (Stochastics) indicator and the MACD indicator. Secondly, it turns the fast and slow double lines of the first two indicators into single line, which greatly reduces the noise and falseness of the double line signal.

Let’s compare Trend Scalp and KD/Stochastics indicators. It can be seen that Trend Scalp is more clear in signal and patterns. So how should Trend Scalp Indicator be used?

The Trend Scalp indicator is one of the indicators within Cloud Trend Trading System. We open trades when the cloud trend indicator and Trend Scalp have the same color. If the cloud trend and trend scalp indicators show red, it means that there may be a long signal, and green indicated that there may be a short signal.

The purpose of this same-color verification is to do trade with the trend. If you look for the red Trend Scalp indicator to during a downwards trend (green cloud trend), the trading winning rate will decrease significantly.