That's for sure. Spread is a huge factor. I see lots of tiny setups today so far, but all under the 10 pips needed on the profit side.
Right. Spread is key, 2 pips or less i'd probably go for. 10 pip target huh? So, with that wider spread you'd make 8, you'd need a 2 pip stop loss entry to SL + spread for 2:1 that'd be tough. Not easy at all. Probably 1:1 feasible, maybe a little better than that. 8 pip EN to SL price range + 2 pips spread, i could see that working.. or even 1.3 : 1 type setups.
The key thing is really that probability backdrop. I use chart patterns, which can allow for tighter stop losses. The issue is - that won't help you unless you are using that tight stop loss at the right moment. Scalping is different from those swing trades.. Reward to Risk is in you favor for the big swings, its the opposite deal with scalping, typically. I'm also interested in developing a good scalping approach - i have day and swing systems that work fine.
Whatever you use for scalping, i say program and test. It makes sense to check the vitality of the strategy before using it. Saves time, ultimately, and has more background information to base action upon - you can verify that from 1,000+ scalps it does what you want. Also can lead to automation which IMO is best for speed and consistency reasons. Again, unless you just enjoy the manual challenge.
I've looked at various support/resistance methodologies. There's a Volatility Based S/R from Kirk Northington - think they offer a free test. There's swing ratio projections (which I use). And then there's Psychological S/R like 1.2800, 1.2900 - (i also use) that you can see showing up in EURUSD recently. I also have a high probability setup i'm looking at, still in the testing mode.
