What are the best time frames for scalping Forex?
I am trading forex with top-down analysis for many years.
In this article, I will teach you powerful combinations of multiple time frames for scalping any currency pair.
For scalping financial markets with multiple time frame analysis, I recommend applying 3 time frames: 4H, 15 minutes and 5 minutes time frames.
4H Time Frame Analysis
4H time frame will be applied for trend and structure analysis.
On a 4H time frame, you should identify the direction of the market and significant supports and resistances.
Key supports in a bullish trend will be applied for buying the market.
While key resistances will be applied for counter trend trading.
Above is USDJPY chart, 4H time frame.
The trend is bullish and I have underlined important historical structures.
Key resistances in a bearish trend will be applied for trend-following selling the market.
While key supports will be applied for counter trend trading.
Look at a structure and trend analysis on EURUSD on a 4H time frame.
15M/5M Time Frames Analysis
15 minutes and 5 minutes time frames will be applied for confirmation, entry signal and trade execution.
The logic is that once you identified key levels on a 4H time frame, you are patiently waiting for the test of one of these structures.
Once one of the key levels is tested, you start analyzing 15 minutes and 5 minutes time frames and look for a signal there.
What should be the signal?
It can be a specific candlestick pattern, price action pattern, some signal from a technical indicator or some other stuff.
Personally, I look for a price action pattern.
I am looking for a bearish price action pattern on a 4H resistance and a bullish price action pattern on a 4H support.
Look at GBPUSD. The pair is trading in a bearish trend on a 4H time frame, and it tests a key horizontal resistance.
On 15 minutes time frame, we see a strong bearish price action signal.
Head and shoulders pattern formation and a bearish breakout of its horizontal neckline.
That will be our strong scalping short signal.
If you sell the market in a bearish trend on a 4H from a key resistance, you can anticipate a bearish movement to the closest 4H support.
Look how nicely GBPUSD dropped after a strong bearish confirmation of 15 minutes time frame.
In that case, we did not apply 5 minutes time frame in our analysis,
keep reading and I will explain when we apply 5 minutes time frame for scalping.
Above is USDCAD. On a 4H time frame, I executed trend and structure analysis. We see a test of a key support in a bullish trend.
At the same time, no pattern is formed on 15 minutes time frame after a test of structure.
In such a situation, analyze 5 minutes time frame. If there is no pattern on 15m, probabilities will be high that the pattern will appear on 5m.
On 5 minutes time frame, the pair formed the ascending triangle formation. A bullish breakout of its neckline is a strong bullish signal and confirmation for us to buy.
If you buy the market in a bullish trend on a 4H from a key support, you can anticipate a bullish movement to the closest 4H resistance.
You can see that after our confirmed bullish signal, the price went up to Resistance 1.
Both trading opportunities that we discussed are trend following ones.
Remember that the trades that are taken against the trend are riskier and have lower accuracy.
For that reason, if you are a newbie trader, strictly trade with the trend!
Good luck in scalping with multiple time frame analysis!
