Hello hello! I've been playing around with my own version of scalping for the last couple days and pulled some decent profits. This is highly NOT recommended unless you have your risk management and emotion in check. As yo ucan see, I go crazy with the FIBS. I pull the main ones off the daily and 4 hour charts, and also do them for the 15 minute and even 5 minute chart movements. Yo ucan find patterns like consistent retracements to the .618 FIB or constent rebounds of up to the .382 FIB if you reverse it (examples only.)
I always look for RSI in the dumps and small divergence as a main indicator. Also, as noted on this chart, I also look for strong support for RSI in the mid range of the chart, so you don't have to rely on RSI dropping way below 30 all the time. In this case I bought when the bears tried to push below the FIB and it was rejected into a hammer-ish reversal candle. I sold at the resistance I had already mapped out from all the FIB pulls from earlier. This was a bigger order, about 5% gain in a short time with a 1% stop loss.
Let me know your thoughts. Luck or logic? ;)
ROOKIE trader; Follow at your own risk! -Solid horizontal orange line: I bought at that price -Dotted horizontal orange line: mock buy, not in the trade yet -Solid horizontal pink line: Stop loss/sell implemented -Dotted horizontal pink lines: Targets
I don't look at the price really if I'm scalping. I first look for big price dips, low RSI I just draw as many Fibs and lines as I can. Determining resistance points and convergence points, and seeing if what's in between is enough Risk:Reward.