The Trend Scalp Forex indicator is an open-source intraday trading tool for Forex and stocks developed for the MT5 platform. It consists of the popular T3 forex indicator. The indicator generates simple charts of short-term market trend changes that allow beginners to anticipate intraday trading opportunities like the pros.
From a technical standpoint, the Trend Scalp indicator is best known for smoothing out uncertain spikes during choppy and overly volatile market conditions. Most traders predominantly suffer from occasionally switching price trend patterns during day trading. Thus, before opening an order, the trader must be aware of the momentum’s stability and the price trend’s exact direction.
Launching the Trend Scalp indicator in your MetaTrader 5 will automatically start tracking the trend changes in your favorite financial assets.
This guide explains using the Trend Scalp indicator to evaluate profitable trade setups on the MT5 platforms.
Since it was built based on T3 Smoothed moving averages, besides signaling the market trend, it also identifies the overbought and oversold conditions of the market.
As you can see on the chart, the appearance of an orange line with a negative indicator value means that the market is in a state of oversold. On the other hand, a blue line with a positive value will indicate that the market is overbought.
The market trend is determined based on the positive or negative value of the indicator.
As a trader, you should go long when the market turns bullish from an oversold state and go short when the market turns bearish after an overbought signal.