While trading, we should remember that the price is driven by market participants or supply and demand. Taking strong level in consideration is a cornerstone of trading. You should not build too many levels on your chart, as it will confuse you. Pay attention to strong ones and use such rules to properly identify them:
- The level should be visible for every market participant
- Trading volume around strong level is always increased
- Candles leave significant shadows on the levels
- The more the price attempted to break the level, the stronger it is
We hope this article will help you in building levels in scalping more effectively. Be careful and follow your risk management!