5 Minute Fibonacci Scalping — Transcript

Full transcript

1. 0:00I made a video yesterday about entering
2. 0:02one trade a day and how super easy it
3. 0:04was. A lot of you guys like this video,
4. 0:06but I got some comments in the comments
5. 0:08section saying, "What if I want to keep
6. 0:10trading more than that once a day? What
7. 0:12can I do?" So, I defaulted back to my
8. 0:15top three trading strategies. And what
9. 0:17you can do is trade the Fibonacci
10. 0:20retracement. I'm going to show you what
11. 0:21that looks like on yesterday's move. So,
12. 0:25let's get into it. All right, just a
13. 0:26quick recap from yesterday's video. The
14. 0:29strategy is ridiculously simple. All you
15. 0:32have to do is draw a box around the
16. 0:35Tokyo session. And that's basically your
17. 0:37consolidation range. Once price has a
18. 0:40candle that breaks out above or below
19. 0:44that range and closes outside of that
20. 0:47range, you would enter in a long or
21. 0:49short position. This example right here
22. 0:51is a long position. Now, measuring the
23. 0:53range, you can see we have 14 pips. My
24. 0:56stop loss is currently set at 50% of the
25. 1:00range value. So this specific stop loss
26. 1:02was seven pips and the risk-to-reward is
27. 1:04a 1 to two. But if you didn't want to
28. 1:06just take one trade and you wanted to
29. 1:08trade a trending market through the day
30. 1:10because that's what markets tend to do
31. 1:12when they're not consolidating is trend
32. 1:14in a specific direction. So the rule for
33. 1:16Fibonacci trading and the first part
34. 1:18sounds dumb but stick with me. You got
35. 1:20to draw zigzag lines on your chart. This
36. 1:23is for you to be able to see better the
37. 1:26market structure, the higher highs and
38. 1:28the higher lows, previous market
39. 1:30structure, as in the high points or the
40. 1:32low points that price needs to break in
41. 1:34order to continue a trend. So, because
42. 1:37this price movement broke this previous
43. 1:41high, this is the section that you want
44. 1:44to measure with your Fibonacci
45. 1:46retracement tool. It's the third icon
46. 1:48down on the left hand side toolbar on
47. 1:50Trading View. draw it on your chart. And
48. 1:53if this is your first time using it and
49. 1:55you've never adjusted the settings, mine
50. 1:57looks like this because my settings are
51. 1:59like this. If you want to copy these
52. 2:02exactly, let me turn a few of these off
53. 2:04because they're unnecessary. I was doing
54. 2:06it for another example. This is all
55. 2:08you're going to need. The zero, the.5,
56. 2:10the one, the 618, the negative.5, and
57. 2:13the negative 1. Now that we've got the
58. 2:14settings all in place, you draw your
59. 2:16Fibonacci retracement tool from the
60. 2:18bottom to the top of the move that broke
61. 2:21the previous structure. Once price comes
62. 2:23down into the Fibonacci gold zone, which
63. 2:26is between the 0.5 and the 618, you can
64. 2:29look at rejections out of this zone and
65. 2:33enter in an additional long position.
66. 2:35What I want you to do is have your stop
67. 2:37loss at the bottom of the range because
68. 2:39if it goes all the way down there, your
69. 2:42theory is null and void and it's
70. 2:44probably going to go in the opposite
71. 2:45direction and your take-profit at the
72. 2:47top of this impulse move. So, bottom of
73. 2:49impulse move, top of impulse move, set
74. 2:52your takerit and stop-loss. I like to
75. 2:54keep my riskto-reward nice and healthy,
76. 2:56so I like to be in between for my
77. 2:59entries, which is why I set up limit
78. 3:01orders for these types of trades. set
79. 3:03your limit order at the middle of the
80. 3:05Fibonacci gold zone and then let the
81. 3:07trade play out. This is going to get you
82. 3:09a little bit better than a 1:1
83. 3:11risk-to-reward ratio. So, not only do
84. 3:12you have your first trade, you have your
85. 3:14second trade and then if price continues
86. 3:16up and breaks this previous high where
87. 3:19this arrow is right now, you measure
88. 3:21that move from top to bottom and you set
89. 3:23your limit orders or you wait for
90. 3:25rejection from this zone and you can
91. 3:27continue trading up. And if you use my
92. 3:30rule of drawing zigzag lines on price,
93. 3:33you can see where the previous highs
94. 3:36were and what the impulse moves were
95. 3:37that broke the previous structure. Now,
96. 3:39this one didn't tag you in, so you drag
97. 3:41it up a little bit more. It didn't tag
98. 3:43you in, but price broke that previous
99. 3:45high right there. And in my mind, the
100. 3:47safest is setting up these limit orders
101. 3:50because if price retraces deep enough,
102. 3:52it will have a strong rejection out of
103. 3:54this zone. If you don't get tapped in,
104. 3:56you simply don't get the trade. But it's
105. 3:58better to be tapped in than having a
106. 4:01really crappy risk-to-reward. If you saw
107. 4:03the rejection come down here and then
108. 4:05impulse up and you placed a long
109. 4:06position here, your stop loss is too
110. 4:09big. Like the risk-to-reward does not
111. 4:11make sense. And when the risk is too
112. 4:13high for the reward, you don't take the
113. 4:15trade. But this is just a simple way on
114. 4:16a lower time frame like the 1 minute or
115. 4:185 minute to carry on trading throughout
116. 4:21that trend and get the most out of that
117. 4:24trend. Hopefully this answered your
118. 4:25question from the video's comment
119. 4:27section, but when it comes to my top
120. 4:29three trading strategies, it's got to be
121. 4:31this London session breakout, Fibonacci
122. 4:33retracements, and RSI divergences. The
123. 4:35reason I like them so much is because
124. 4:37they happen so consistently, which
125. 4:39allows me to trade multiple different
126. 4:41ways in a single day. All three happened
127. 4:43in this one day. We had the breakout of
128. 4:45the Tokyo session. That trade worked
129. 4:47out. We had a Fibonacci retracement into
130. 4:49the Fibonacci gold zone and it extended
131. 4:52up. That trade also worked out. Then if
132. 4:54you look at the highest highs of this
133. 4:57uptrend, you can see we had a high here
134. 5:00and then a higher high. And if you look
135. 5:01at the RSI, the RSI made a high and a
136. 5:05lower high, which means the momentum
137. 5:06died off and price is more likely to
138. 5:09reverse at that point. If you guys
139. 5:10haven't seen my video on my top three
140. 5:12trading strategies, you can click it
141. 5:14right here. Thank you so much for
142. 5:15watching. I really appreciate you guys
143. 5:17and we will see you in the next