Trading Strategy for Scalping exposed! -HIGH PROBABILITY with Low risk High Reward setups

Trading Strategy for Scalping exposed! 

HIGH PROBABILITY with  Low risk High Reward setups

Technique - Finding areas of confluence

Aim - To find confluence of

• Fib Retrace levels
• Fib Ext Levels (also inverse)
• Daily / Weekly / Monthly Pivots
• Support and Resistance

This is a chart of the AUDUSD H1 chart - 

You will see that i have the following

• Two sets of Fibonacci retrace swing level
• Two sets of Fibonacci Extension swing level
• Daily Pivots shown only 
• Marked area of support and resistance

For details on how to identify swings for fib retrace - there are tons of info online, 

I will however explain the fib extension-

1st Swing is -  from the low to recent high

2nd swing is - consist of both, Previous Days trading range, and also yesterdays swing low to high

What does the chart tell me?

You will see that the 127.2 fib ext, which is overlapping exactly on the 61.8 retrace  - this to me is a very strong and together with previous support which now is resistance.  And whats above? there is a 78.6 from the smaller swing retrace as well as a daily pivot.  

How Should you trade this?

Two ways

1 - Risk takers - , Pending Order there - however stops will need to be wide, perhaps above the daily pivot or even at the the high of the smaller swing.

2 - Conservative Traders / Scalpers

Wait for price to get there, zoom into a 5 min or 15min chart, and look for confirmation entry.

Confirmation entry - there are few techniques, and I could not explain them all , however in this scenario a Shooting star candle was enough!

Below is a 5 min chart - where you see a Shooting star with the body closing in the previous candles body.

nb - bit risky because of the huge jump on the previous candle due to news releases, but you can see your risk is small and when you see that price stalled at the level we anticipate it will reverse.

Another way is what I learnt from Forexmentors Vic Noble Course.

- You will see that there was a buy setup on the AUDUSD after the whiplash action

Word of Waning

Guys, don't be greedy when trading, Don't go for the home run! Get your 1:1 or 1:2 (risk reward) and take your profits of the table. These setups occur everyday, !

Last words

I hope you guys learnt something here.  There are many more techniques and things to look out for, what I have shown is just the basics. :)

I am not the best on explaining things , but my passion is to provide good information to traders out there!

Cheers