Hi all, good to have you here. In this article I want to share about how I improve my Forex scalping strategy. And here is my scalping secret. Pivot points can be used to determine support and resistance levels in scalping. If you want to trade using Forex scalping strategy you should check resistance R4 and support S4 levels to find breakout movement. In further discussion in this article we will learn about how to determine levels to entry and exit for your scalping position.
Breakout system is one of the most traded systems for scalpers in FX market. If market price breaks the main support and resistance level, this chance usually gives scalping traders chances to put their scalping position. In this article I want to share Forex scalping strategy using pivot points levels. Let’s start!
Forex Scalping Strategy using Pivot Points
Pivot point scalping strategy usually is the good systems to determine key levels of support and resistance for day trade. In FX market forum there are a lot of kinds of Pivot point. But in this strategy I use camarilla pivot point for scalping. In camarilla pivot point we monitor R4 resistance level colored with green and S4 Support level colored with red.
In a bullish trend, we will find breakout movement above resistance level. Resistance R4 is the final resistance level, we can use this resistance to place our scalping position.
After we have determine support and resistance level using camarilla, now all we have to do next is find open trade level. The general system of breakout Forex scalping strategy is to plot long scalping position in a bullish trend when the market price breaks the resistance level and plot short scalping position in a bearish trend when the market price breaks the support level. This action can be done using order mode in our platform after the market price breaks these support or resistance levels.
If you want to trade this scalping strategy you should spare your time to monitor your chart. You can also wait for one candlestick open beyond your trade level for confirmation.
How to manage risk in Forex scalping strategy
The hardest thing and the most important this in Forex scalping strategy is to manage risk. If you are using pivot point scalping system, market price levels become intuitive. If we are open buy scalping position at resistance we can manage our risk by putting stop loss order below the resistance R3 and place profit target at least twice of your risk.
Other scalping articles
- MACD Scalping
- Simple Scalping Trading System
- Scalping using SSI
Hello, Nice Article.
ReplyDeleteI want to ask, what best TF to identify and to determines position from the price movement for scalper? Thx :)
Hi Indra, glad you here :)
ReplyDeleteUsually scalper use 5 - 15 minutes time frame chart to identify current trend and 1 minute time frame to get trading position
hello sir i want to do scalping with Boilinger band technique. i close the deal in only 1 or2 pips profit.i am happy with that. I want to ask you that i have leverage of 500 times.Should I use my leverage for big lot and exit in small profit?need reply please.
ReplyDeleteHi Milind thanks for asking. I suggest you to use risk management, even scalping system aims small pips, it doesn't mean you skip risk and reward ratio. At least you use 1:1 risk and reward ratio.
ReplyDeleteIt is useless if you win 2 pips in 10 trades but you lose 20 pips in 1 trade.