Intraday Scalping System SR

This is how I scalp intraday. These little "stabby" bars that poke out from a downtrend are
good reactionary levels in an uptrend, and are good for anywhere from usually +15 to +
hundreds if they mean the continuation of a bigger trend. Always watch out for these,
especially if they coincide with more historical significance. This is a 1 hr chart.
This is the JPY trade long. At this point price has the potential to go either way, because the
bigger trend is down. My intraday target was hit for about +71 pips on the long side. I took
most of it off and in my other account have a short which is good for about +23 pips so far,
trying to get the most out of the downside on bigger size. This is how I trade typically in a case like this.
So that's about +90 pips on one pair in a couple hours. Just to give you an idea of what is
possible. On both of these I got in with a total of 1 pip drawdown + 1.6 spread on each.
Dont feel like you need a lot of guts to pull the trigger on a short like this. Take a look at any
chart and you'll see it happen almost every time. The more you see it the more you'll get
comfortable with it.
Between these and bigger moves you'll find yourself very busy. No indicators required. Just your eyes.
Intraday Scalping System SR
The Importance of Hourly Closes
Hourly closes hold the most significance. I stated in an earlier post about AUD that I was
looking for a close below this resistance turned support to prove continuation. This is another
one you'll see happen over and over again. I trade them when I feel strongly about them but
generally have uneasiness due to the lack of proximity on the entry.
Shorting at that close whould have provided about +20-something pips right now. You can see
the same thing happening but in reverse on the earlier move into the 0.9650 resistance.
Intraday Scalping System SR
I commonly refer to price in trending environments as stacking bricks, because you will notice
over and over again that price forms “blocks” and stacks diagonally, one on top of the other.
Below we have a chart of USD/CAD. You’ll see that on 3 different occasions during this
uptrend, a level of resistance turned into a level of support, a bullish sign indicating further
price movement upwards.
Intraday Scalping System SR
In regards to intraday trading, using this technique and using these levels will provide high
probability setups over and over again on heavily trending days. When an area finally becomes broken, it is typically a sign that the uptrend is over and either reversal or consolidation is on the way.
Additionally, you will notice from the chart that the diagonal trendline was forfeited for the
horizontal support and resistance. Playing a bounce off of a diagonal trendline would not have
given you nearly as good of an entry as the horizontal lines, or you would have missed entry
altogether, depending on how you were to draw the line. It is why we always require horizontal support and resistance be present before entering any trades.
Intraday Scalping - Example
Overview: This level, 1.4737 holds historical significance. Please refer to a 1hr chart previous
to the time period below for more clarity.
Step by step:
Point 1: 15 min chart/1hr bounces off of the level. Buying opportunity.
Pont 2: Hourly close below the level. Price pulls back, allowing sellers to get on in. Price drops.
Point 3: Approach to the line again. Selling opportunity.
Point 4: After an hourly close above the line, price bounces off of it again. Oil inventories come out, price takes out the level pretty easily.
Point 5: Level fails, getting weaker; been used many times in the last 24 hr period.
If you take a look at the chart below and study these types of movements you'll be quick to
start recognizing these patterns happening all of the time. I've posted a few of these now,
simply for the reason that this type of activity is very frequent and reocurring.
Intraday Scalping System SR
The Bottom of the Bucket
Here's a pattern that happens all the time and is very important for taking advantage of a lot
of buying and selling opportunities. You'll notice that when price makes a "U" formation at a
turning point there will commonly be a base built within it. Think of it as a cup, where the
bottom inside the cup acts as a potential turning point for price. To make the most out of these
you would want to scale down to smaller timeframes in order to pinpoint the exact bottom of
the cup formation.
If the base of this cup lines up with historical support or resistance all the better. Many times
you will see the "stabby" bars in trends get nulled and price will turn at these bases. It
happened today on EUR, for instance.
If you take a look at your charts you're going to find them everywhere. They happen over and
over again; I look at them very frequently.
Below are some recent examples on EUR and GBP.

Intraday Scalping System SR

Intraday Scalping System SR

The levels we look to play bounces off of are usually very heavily-concentrated upon areas for
market movers and they command a lot of attention. When people see that these levels have
been hit, they seek to continue the price reaction in the form of a reversal, which could last for
several hundred pips if overall market conditions are in alignment.
We turn to chart below. Here we have the last few days of activity for USD/JPY. On this chart
alone, we have several different scenarios which are presented to us, almost all of which we
have the ability to make money from. Let’s walk through these motions step-by-step.
Point A: We have a new level that gets formed. We’re looking for a price reaction the next time it gets seen.
Point B: Price exceeds the level by more than a comfortable amount (we’re looking for it to hit it exactly and reverse). Additionally, we have an up close on the 1hr bar that is almost right on top of the level. We close our new short position with only a couple pips of profit. Price exceeds the level, and then uses it as support. We open a long right on the level when we see this.
Point C: Price reaches major resistance, so we go short, expecting a sizable move
Point D: Price uses the high of point B as support and retraces about 25 pips, where we could
have made some profits on a long; we know that major resistance is just above us, so our
expectations are low for continuation.
Point E: Price uses the previous support level at point D now as resistance. We go short.
Point F: We attempt to go long at the support level created at point B. The level is taken out,
and we get an hourly close below it. Price retraces back up to the level, and uses it as
resistance. We go short.
Point G: We go long when price hits a previous support level on the last wave up, which ends
up coming off of it hard.
Point H: Our support level created at point B is hit yet again, but because it failed the last
time, it is now weaker. Additionally, the hourly close is very strong, and in the upper portion of the bar. We take partial profits on our trade and hold off on any new action.
Point I: News comes out, and other levels are taken out. Before the news was released, we
closed the rest of our long.
Intraday Scalping System SR


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