#ScalpingTips 📌 How to Analyze Price Before Scalping on Binance
If you enter a trade without proper confirmation, you risk getting caught in fake breakouts. Here’s a step-by-step guide to analyzing price action before scalping effectively.
Step 1: Identify the Trend
Before scalping, determine the overall market direction:
✅ Uptrend: Higher highs & higher lows (good for long trades).
✅ Downtrend: Lower highs & lower lows (avoid buying unless there’s a reversal signal).
✅ Sideways: No clear trend, best to wait for a breakout.
Tip: Use a 15-min chart to confirm trend direction before scalping on the 5-min chart.
Step 2: Mark Support & Resistance Levels
Identify key support and resistance zones where price tends to bounce or get rejected.
Support: A level where buyers step in.
Resistance: A level where sellers take control.
Tip: If price is near strong resistance, avoid buying unless a clear breakout occurs with volume.
Step 3: Check Volume for Breakout Strength
Volume confirms how strong a price move is:
✅ High volume on a breakout → Strong move, more likely to sustain.
❌ Low volume on a breakout → Fake breakout risk, price may reverse.
Tip: If a green candle breaks resistance but volume is weak, it’s better to wait for confirmation.
Step 4: Use Key Indicators for Confirmation
Indicators help in confirming trend direction and momentum:
Bollinger Bands – If price is near the lower band, a bounce may occur.
MACD – A bullish crossover signals momentum shift.
RSI – If in the oversold zone, price may reverse upwards.
Tip: Never rely on just one indicator; use at least two confirmations before entering a trade.
Step 5: Create an Entry & Exit Plan
✅ Entry: Enter after a breakout is confirmed with volume and indicators.
✅ Stop-Loss: Set a tight stop-loss below support to limit risk.
✅ Take Profit: Aim for short targets (like 0.5-1% move) since scalping is about quick profits.
Tip: Always follow a risk-reward ratio