ADVANCED Forex Scalping Strategy

Scalp Like a PRO !

Forex Scalping Technical analysis
In this Part we’ll see only the important technical analysis indicators and patterns

01 Support & Resistance

Candlestick Patterns & Price

02 Action

03 Technical Indicators & Moving

Averages

04 How I personally analyze the

market for scalping
 SELL
Support & Resistance

What is support and resistance?

Support and resistance levels are horizontal price levels that typically connect price bar highs to other
price bar highs or lows to lows, forming horizontal levels on a price chart.
A support or resistance level is formed when a market’s price action reverses and changes direction,
leaving behind a peak or trough (swing point) in the market. Support and resistance levels can carve out
trading ranges like we see in the chart below and they also can be seen in trending markets as a market
retraces and leaves behind swing points.
Price will often respect these support and resistance levels, in other words, they tend to contain price
movement, until of course price breaks through them.
In the chart below, we see an example of support and resistance levels containing price within a trading
range. A trading range is simply an area of price contained between parallel support and resistance levels
like we see below (price oscillates between the support and resistance levels in a trading range).
Note that in the chart below, price eventually broke up and out of the trading range, moving above the
resistance level, then when it came back down and tested the old resistance level, it then held price and
acted as support…
 SELL

The other primary way support and resistance levels

are created in a market, is from swing points in a trend.
As a market trends, it retraces back on the trend and
this retracement leaves a ‘swing point’ in the market,
which in an uptrend looks like a peak and a downtrend
looks like a trough.
In an uptrend, the old peaks will tend to act as support
after price breaks up past them and then retraces back
down to test them.
 SELL

In a downtrend, the opposite is true;

the old troughs will tend to act as resistance
after price breaks down through them and then
retraces back up to test them. Here’s an example
of a market testing previous swing points (support)
in a downtrend, note that as the market comes
back to test the old support, the level then behaves
as ‘new’ resistance and will very often hold price.
It’s wise to look for an entry point into a trend as
it comes back and tests these previous swing points
(see pin bar sell signal in chart below), because it’s at
these levels that the trend is most likely to resume,
creating a low-risk / high-reward potential:
See you in the next
episode…