Scalping System

Congestion – When a new high (low) on a chart is followed by at least two prices in the opposite direction.  Prices do not have to be consecutive, however, close on second down day must be lower/(higher) than first day.

Valid Congestion Patterns

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Non-Valid Congestion Patterns

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Hill’s Day Trading

  • Support and resistance points are the previous daily highs, lows and closes.
  • Action around these points determines immediate direction of the market.
  • A 5 or 10 minute bar chart can be used to advantage to evaluate market at these critical points.
  • Action between high and low is in no-man’s-land.  Intraday action may be misleading until one of the critical points is tested or penetrated.
  • Most of the time only sell at previous top, and only buy at previous low.  There are exceptions of this, of course.  A five minute chart will usually reveal whether penetration is aggressive.  A non-aggressive penetration calls for selling at the top or buying a bottom.
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