FOREX SCALPING | SUPPORT AND RESISTANCE LEVELS
Forex scalping is basically a technique which involves opening and closing the
trades in a very short period of time in order to obtain quick profits.
This trading method is based on opening trades and closing them with small
profits on lower timeframes.
The Forex scalping setup is based on finding confluence.
the confluence is an area with multiple support and resistance levels.
both static and dynamic a confluence of support or resistance is more relevant
As it includes two or more important focus points on the chart
although it might seem complicated finding confluence on the chart.
But it is not difficult you just have to train your eyes to spot chart areas.
where multiple levels meet finding confluence on your chart.
it’s very important for scalping.
because these areas offer high probability trade opportunities before you continue with the scalping setup.
It’s quite subjective and is dependent on the trader skill
experience and tools used on the chart.
To find areas with at least two support and resistance levels one of them must be a static level in the other one at a dynamic level.
So we need three confluence conditions to be met for our scalping strategy
first, we need an obvious area of support or resistance.
Support and resistance is practically the foundation of technical
we need to add something else for our scalping confluence set up.
Exponential Moving Average (EMA 200)
I prefer to add the 200 EMA.
Because as a dynamic area of support and resistance level is constantly changing depending on recent price action.
Our third component in the scalping setup is stochastic.
Those pinpoint market entries.
The stochastic oscillator will help us to find out divergences on the chart.
The divergence occurs when the prices for a lower low
while the stochastic forms a higher low indicating a possible buy.
Or when prices form a higher high and the oscillator
forms a lower high indicating a possible sell.
The divergence occurs when the price action is different from the action of
the stochastic oscillator.
When a divergence occurs a potential change in price direction could be on a course
So now we have the full set up for a confluence of dynamic and static support and resistance levels respectively recent market swings.
Let’s see the scalping strategy in action in this chart we see
this level of static support and resistance and here are the confluence areas with the 200 EMA.