Best Scalping Trading Strategy | How To Scalp Forex & Stock Market


Hey guys, in this video I will show you how
I scalp the markets using a simple and easy setup, strategy that helps me to spot high
probability areas on a chart. So scalping is basically a technique which
involves the opening and closing of 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. My scalping setup is based on finding confluence. A confluence is an area with multiple support
or resistance levels, both static and dynamic. A confluence of support or resistance is more
relevant to traders as it includes 2 or more important focus points on the chart. Although it might seem complicated, finding
confluence on the chart is not so difficult. You just have to train your eye to spot chart
areas where multiple levels meet. Finding confluence on your charts is very
important for scalping because these areas offer high probability trading opportunities. Before we continue with the scalping setup,
let me tell you something important: finding confluence is quite subjective and it’s
dependent on the trader’s skill, experience and tools used on the chart. My personal rule is to find areas with at
least 2 support and resistance levels, one of them must be a static level, and the other
one a dynamic level. So, we need 3 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 analysis and these levels serve as a starting point for developing
an idea of what may happen next in what concerns the price movement. So, we first look at recent market swings
and try to spot areas of static support or resistance. As a rule of thumb, if the line includes 3
or more swing points, it means that the support/resistance level is more relevant. But drawing horizontal lines around recent
market swings can be very subjective and in most cases, we can usually only approximate
those areas. That’s why we need to add something else
for our scalping confluence setup. The second confluence condition involves the
200 EMA, as a dynamic area of support and resistance. 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. In the case of static support and resistance,
you already know at the beginning of the trading day where those levels are. You know in advance where the possible areas
of interest are located on the chart. With dynamic support and resistance, you don’t
know an exact number, as these levels are changing depending on market fluctuation. This is a good thing for our scalping setup
because we can use both static and dynamic levels in our advantage. So, we add the 200 EMA, and start searching
for areas of confluence between the dynamic support and resistance and static support
and resistance. Our 3rd component in our scalping setup is
the Stochastic, used to pinpoint market entries. The Stochastic oscillator will help us to
spot divergences on the chart. If you are not familiar with divergences,
a div a divergence occurs when prices form a lower low while the Stochastic forms a higher
low (indicating a possible buy), or when prices form a higher high while the oscillator forms
a lower high (indicating a possible sell).a divergence occurs when price action is different
from the action of the Stochastic oscillator. When a divergence occurs, a potential change
in price direction could be on the cards. So, now we have the full setup: we are looking
for confluence of dynamic and static support and resistance levels (respectively recent
market swings and 200 EMA), and we pull the trigger if we spot a divergence on the Stochastic
oscillator. Let’s see this scalping strategy in action. In this chart we see this level of static
support and resistance and here is the confluence area with the 200 EMA (the dynamic support
and resistance indicator). So, we have this potential area, but we cannot
enter the market blindly. We need to confirm it with the Stochastic. We have a regular divergence. And we also have a hidden divergence, a more
powerful setup. All our conditions were met, so after the
crossover of the Stochastic lines we can enter long on the market. Because we trade based on confluence, the
stop loss order would be placed below the confluence area. The profit target depends on your trading
style and risk aversion. You could aim for a 2:1 ratio, or put your
stop to breakeven once in profit and ride a risk free trade. Here is the same setup. We have a confluence area between the recent
market swings and the 200 EMA. And a divergence on the Stochastic oscillator. If you incorporate also some price action
techniques, the scalping setup will become even more powerful. Look at the flag pattern developed, which
is another confirmation that the long position was the only alternative and short positions
were out of the question. Here we have a short scalping trade. We have a clear resistance area right around
here. The 200 EMA serves as a dynamic area of support
and resistance. Right around here, we have our confluence
area. We see a hidden divergence on the Stochastic
and once the Stochastic lines crossed we had the confirmation we needed and the high probability
trade was on the short side. I know that there are some of you that are
also trading the crypto markets. I personally don’t trade cryptocurrencies
because I prefer to understand the fundamentals behind a market before i decide to put my
money on it. So, I’ve not tested this scalping setup
on crypto markets, but you can back test it on a demo account, to see if has potential. On this Bitcoin chart, i found the confluence
pattern, and the Stochastic entry here, but I’m not familiar with the spreads on crypto
markets so I cannot tell for sure if you can profit from it in the long run. Why I’m talking about the spreads? Because of the nature of scalping you need
to trade only the instruments with the lowest spreads. As a scalper, by default you’ll use tighter
stop-losses, aiming for small profits. The higher the spread, the lower your stop-loss
will become. I personally never scalp an instrument that
has a spread higher than 2 points because the risk/reward ratio is not worth it. Like I said before, scalping may seem easy,
but is not. If you want to make money from scalping, it’s
imperative to have a disciplined approach to trading. Keep your price charts clean, without plotting
a lot of indicators, and focus also on reading and understanding the price in order to increase
your chances to scalp the right way. If you got any value from this, please consider
subscribing to our channel, share and like this video, as it would help us a lot in the
future. Until next time.

100 thoughts on “Best Scalping Trading Strategy | How To Scalp Forex & Stock Market”

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  3. First time watching your video and I like it! Informative and good sharing and no selling. I Will follow your vidoe more Mike! Btw how long do you normally hold your scalp trades? Thanks.

  4. There is no magic rule which will determine the exact time the market will dry up and see volatility disappear. Generally the market will pause in anticipation of the next move from central banks. A trader’s ‘style’ can be broken down into four main categories. -Scalpers (Short term, quick in-and-out trading) -Day Traders (Intra-day trading, no overnight positions) -Swing Traders (Medium to long term, trend momentum & range trading) -Position Traders (Long term, ‘buy and hold’ trading ). I Buy the dips and sell the rallies as a swing trader on trend momentum working with ''IQD Momentum strategy'' from LUKASZ WILHELM Method. At any given time, on my 4 hour chart of gold above could be beautifully expressed and mapped out with just two levels at any given time with these method. make research for advanced strategy on any category you belong to. find lukasz wihlem on google search and learn more of his strategy.

  5. Make a video for best moving average combination for scalping in forex. and also tell us to avoid false signals and crossovers. How to tackle, filter and avoid those false signals.

  6. Hey mate what timeframe you scalping on
    Just wondering because you talk about the 200 ema, if you use this on the 1min chart it’s the same as the 20 ema on the 10 min chart, does it really matter as long as you use the same one all the time like say the 50 or the 100 they all represent something different on another time frame.
    Say the 450 ema on the 1 min is the same as the 50 ema on the 10 min chart which is the same as the 8 ema on the hrly chart and so on.
    Great vids just the right length
    Thanks for sharing

  7. this is a wonderful video, I so much love the way you explained all we need to know about this strategy.i have a mentor who first introduced me to forex trading,she was right too.this is really good,i am excited. thanks

  8. Finally finally , YouTube suggested me a worthy video. Dude , gold tips. Thanks . I didn't get the spread part. What is it, how do find out the spread of a stock ?

  9. Thank you for the video post.
    Do you use the standard Stochastic settings?
    Do you step thru the process in the same order that was presented in the video?
    What chart TF do you use to mark the static SnR?

  10. Wow, I'd used Stochastic in my early days and discarded it later, moving on to more and more advanced techniques of assessment, not really knowing how to interpret that to begin with. Shows how important the basics are. Thank you very much.

  11. Got to use limit orders on crypto. It can work there. Deribit and Bybit are easier to scalp on than bitmex if using market orders. Bitmex has more liquidity though.

  12. Wonderful video thank you for the info my friend. I have a QUESTION: why you use Stochastic and not RSI?

  13. For swing trade do we have to trade in future/derivative segment? Because in cash we can not sell a share in cash before T+2 settlement days.Again for swing trade we cannot short sell a share in cash segment
    In that case for a beginner initial capital and stop loss will be higher for swing strategy

  14. you're awesome man, after a lot of loss, just this video changed my trading skill, now i earn money from scalping ,eventhough the profit is small but it's enough instead of making loss, now my success rate is just amazing,thanks bro

  15. Another great video and very clear. You helped me finally put the extra touch when using stochastic. How have you set up your stochastic for these scalps? The default is quite general and does not work well on 5 min charts ive noticed

  16. I’m a beginner from California Last week I got some tips from mr George he have helped me with a beautiful and amazing strategy to earn from trading and so great I have make $65,000 in just 2 weeks it was amazing he helped my life and I’m happy to recommend him to you all contact him politely on his personal email ([email protected]) he is the most honest man I have ever seen

  17. Hello, pleasing video. But what time frame is that in the videos? What time frame u solid recommend to try this strategy?

  18. Do a live scalping with this strategy let’s see
    It’s easier to point out when the candles already formed

  19. Wow, amazing strategy but simple for understanding! Thank you for sharing! What is your suggestion for pair of currencies?

  20. All this information for free? Respect man. Really appreciate it. Can't wait for this trading week to start!!

  21. I’m slightly confused on one part. On the first chart you show a hidden divergence with price action showing a higher low but the oscillator showing a lower low. You’ve said that is a buy but isn’t that a sell?

  22. Hi. Im trying to implement this on bitcoin in lower time frame. But the stoch is really confused with 8,3,5 configuration. Do you suggest another configuration?

  23. I like how you always repeat that one signal is equal to no signal, that you need confirmation and multiple signals.

  24. I have been trading with Mr Edward for the past four months, and I made $19k in my last investment of $1,500 on my last trade with him.

  25. Excellent video. Short and precise.

    Could you please also make a video on identifying the S-R levels precisely?

  26. I watched a video some time back by a guy that's been trading with a firm
    for quite some time.. You don't know what's going on if you don't have three charts
    open at different time intervals.. You need to know the big picture.. Sure your technique
    works at best-" Generally". Make sure you use someone else's money.

  27. Thanks for the truth, but we also need to know that while in the market you need guidance else you will be a victim of bad forex testimonies, truth be that I was one, in fact I lost $4000 in just a month then I got introduced to Mr. Andrew, who happens to be the best trading agent I've come across. with his reliable strategies, he remains the best. forever am I grateful to Thompson for introducing me to Andrew. my trades get me more profits now, unlike trading with losers

  28. You mentioned something about a spread in this video and that when you scalp, you only scalp with max 2 points spreads. Could you elaborate? What exactly do you mean? How do I know how many points a particular spread has?

  29. How do you explain in the 3rd example (6mn30") that soon after your bearish setup, the price turns bullish ? It simply crosses the confluence zone later.

  30. Really appreciate your insight thank you very much, the only thing so far is that I have not noticed this set up over the last few days On a few different indices so how often can you trade this? There may be other strategies that are more common?

  31. Thanks for the strategy. You say that the Stochastic Oscilator have to form a higher low and the chart have to form a lower low to buy – and vice versa when it's a sell 3:50. But at 4:52 you say the opposite when a buy opportunity comes. Can you explain how it works, so i know when to buy or sell. And thank you for the awesome video :)))

  32. i'm trading with a demo account for a few months practising strategies until i can prove profitable over time. someone told me demo account are a scam because the markets do not move like real markets, which confused me since i thought the forex markets you trade with on demo accounts (Libertex) which seems legit and claims live market, were all live markets. does anyone have info on this?

  33. Always insightful. Cryptocurrency certainly has my attention and I am very intrigued by all of it.

  34. What's your setup for the stoch… Is it the standard

    Amazing video by the way,.. Really appreciative

  35. your channel is the best in teaching trading techniques, despite your wierd voice & accent lol much thanks for your efforts

  36. Your video is very good. As you know many forex brokers not allow for scalping, so iam give info.for new clients, they can try with cent account so new traders can enjoy real trade with 10 usd =(1000cent) visit www.easyhits24.com

  37. Hello, even if its not my style of trading its very interesting but if i may did you test it on bigger time frames? Because it seems to be a good reversal strategy for good trades not only for scalping. I will also start testing it on 1D chart and 4H chart with my current trading setup thanks for sharing the knowledge !

  38. Very interesting strategy, thanks! I also trade using the same confluences method, but on H1 timeframe and without the moving average. Do you think I could use a 200 EMA on H1 or should I change the period to it?

  39. Thank you so much for the informative lesson.
    One question is if using say the m15 timeframe, how long should you let the trend continue into profit before it reverses again?

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