scalping

Below is a play by play rundown of a typical dollar futures trade. You should be able to click on each screenshot to see the progression of the trade along with any notes written on the chart as the trade was taking place.

1.) Before I place a trade (no matter the trading vehicle) I already know where the support and resistance levels are. This is a short term trade (scalp) but you can essentially do the same thing for a longer term swing trade or investment.

This first chart shows that I bought the dollar on a huge pull back.  I placed the trade on a support line I had mapped out days in advanced. I did not know if the price would ever reach this level, but I map these channels and levels anyway. Then I wait patiently and if  the price hits a support line I buy or sell it looking for a bounce.