Scalping Without Indicators
Technical indicators tend to be based on repeated patterns in the market. On very short term trading, volatility can be amplified, thus indicators may not be as effective on very short term time frames. Trading without a technical indicator is possible. A technical indicator provides rules and signals. Unlike an automated trading system, it is possible for the trader to modify (perhaps with a filter) indicator signals or even ignore the rules based on what the market is doing vs. what the indicator is signalling. So the trader can still use an indicator when scalping but with an eye on the market.
However it is possible to ground trading in the market, which on short term volatile trading may be an approach to take. One way to do this is to trade on value, that is the significance of the actual value of a Forex pair. Value requires no indicator it is there to be seen by the trader. However it is necessary to know what the significance of value may be. Significance here means that the market has tended to change its movement in some way repeatedly in the past when encountering this value. In general this means value to the right of the point for shorter term trading, but the significance of value to the left of the point can also come into play, if the market happens to be trading through important value markers.
One important repeated value is what is termed the big figure, which is in the case of USD/JPY moving through (for example) 90.00 or 89.00 and so on (i.e. a unit change to the immediate right). In short term trading the trader may instead be moving within the big figure (but not always). Between the big figure has significance as well (in terms of repeated trading patterns). For example halfway between (.50) can cause changes in the movement of a Yen cross. Halfway can be implicated in moves contingent on the big figure. For example a move which cut through the big figure may continue all the way to halfway then reverse direction back up to the big figure (and of course may not). Such reversals can happen earlier, for example three quarters way or closer to the .90. Thus these figures can provide a way to trade on short term moves in a structured way, rather than trading on momentum.
Another way for the trader to scalp without indicators is to trade on the news (this is a specific kind of trading though related to scalping) and to trade more generally on liquidity, that is to look for market events where liquidity will change, thus perhaps resulting in moves based around these changes. For example, in the run up to a market open or around a market close (e.g. Frankfurt close in the New York trading session). In general the one may be looking for liquidity to establish trends which may later establish ranges, thus providing structures short term trading, visible on the 1 minute and 5 minute charts. For example, events in the Equity market may result in trends visible in major pairs, such as EUR/USD and USD/JPY (in the case of the US Equity market). Of course it is impossible to use this to predict Forex moves, as unusual surges or sharp drops in the Equity market are not predictable.
Multiple time frame analysis can provide markers as well, by showing confluences or contradictions of moves which may result in short term reversals or continuations. The aim is perhaps to establish a marker by whatever means that may result in structured moves which can be traded on the short term, or turned perhaps more preferably into longer term moves.