Best Scalping Entry - Price action — Transcript

Full transcript

1. 0:00there are two different ways to trade
2. 0:01you can either scalp or you can
3. 0:03long-term trade
4. 0:05long-term trades have higher stop losses
5. 0:09your take profit level is very far away
6. 0:12so to stay comfortable you need to have
7. 0:13a bigger stop-loss whereas scalping is a
8. 0:17very short-term trade so you want the
9. 0:19most exact surgical entry
10. 0:23very small stop loss and a quick take
11. 0:25profit so in this video i'm going to
12. 0:28show you how to get the best entries
13. 0:30when scalping and how big your stop-loss
14. 0:33should be when you're holding a
15. 0:34long-term position
16. 0:36[Music]
17. 0:41welcome back to the channel everybody my
18. 0:43name's artie and this is the moving
19. 0:45average a show where we discuss
20. 0:46everything day trading to keep you
21. 0:48profitable on a consistent basis it's
22. 0:50been a long time since i've discussed
23. 0:52this i've made a previous video about it
24. 0:54but i want to talk about the three line
25. 0:56strike and why it's so important and why
26. 0:58it's actually your best entry for
27. 1:01scalping any market the reason is
28. 1:04because it's price action okay so i've
29. 1:06got us 30 up here on the one hour chart
30. 1:10and what i want to talk about is these
31. 1:13double tops triple tops
32. 1:16strong trends double bottoms i want to
33. 1:18show you how this correlates with trend
34. 1:21trading and getting reversals and
35. 1:24getting the best entries and where your
36. 1:25stop losses should be on longer
37. 1:27positions hopefully you guys can see
38. 1:29this nice strong downtrend right here if
39. 1:31you can't
40. 1:33you need to keep learning you can either
41. 1:35draw a trend line across this in any way
42. 1:38that you want or what you can also do is
43. 1:41just stick up a 21 period moving average
44. 1:45the 21 is a good short term trend and
45. 1:47you can see how many times it's rejected
46. 1:49off of the 21. now zooming in once price
47. 1:53is trading below the 21 almost every
48. 1:56single time that it rejected off of the
49. 1:5921
50. 2:00it was a three-line strike meaning that
51. 2:02there was three green candles and one
52. 2:05engulfing red candle right after three
53. 2:08green one red
54. 2:10three green one red now you may be
55. 2:12asking yourself why i'm scalping on the
56. 2:14one hour chart i'm not i'm just showing
57. 2:16you what these three line strikes look
58. 2:18like rejecting off of a 21 period moving
59. 2:22average the reason why i have it on a
60. 2:24one hour chart is to show you these
61. 2:26definitive double bottoms and double
62. 2:28tops so let me show you these three line
63. 2:31strikes on a five minute chart so these
64. 2:34are the same areas circled from the one
65. 2:36hour chart just zoomed into the five
66. 2:38minute so getting down to the five
67. 2:40minute chart all of these rejected but
68. 2:42this is the only one that had an
69. 2:44engulfing candle where this candle is
70. 2:46completely bigger than this candle
71. 2:48didn't happen here didn't happen here so
72. 2:50once you find that engulfing candle
73. 2:52that's going to be your entry point now
74. 2:54your stop loss is going to be really
75. 2:56really tight it's just going to be above
76. 2:58that swing high now depending on what
77. 3:00your strategy is whether you're
78. 3:02targeting the previous swing low or a
79. 3:05one to two risk to reward ratio or 20
80. 3:07pips
81. 3:08if the trade does not fall within your
82. 3:10parameters if that swing low is not more
83. 3:13than 20 pips you don't take the trade if
84. 3:16you don't get a one to two risk to
85. 3:17reward ratio on that swing low you don't
86. 3:19take the trade but if you can get a one
87. 3:22to two or the swing low is below that
88. 3:24take the trade and just let it play out
89. 3:26this one landed your one to two risk to
90. 3:28reward in 25 minutes again engulfing
91. 3:31candle one to two wrist reward ratio
92. 3:34this one was really really close this
93. 3:36one would have been a one-to-one risk to
94. 3:38reward ratio and you would have been
95. 3:39stopped out anyway so that's why it's
96. 3:41really important to see if your price
97. 3:43target is actually worth you risking the
98. 3:45trade if you're only getting a one to
99. 3:47one it's not really worth risking one
100. 3:49percent if your target is that close
101. 3:52again right here that swing low very
102. 3:54very small and the stop loss is bigger
103. 3:57so don't take that also what you want to
104. 3:59keep in mind
105. 4:00is that as this trend is going on for a
106. 4:02period of time it's eventually going to
107. 4:04reject so you can't just keep taking
108. 4:06every single one of these three-line
109. 4:08strike trades or engulfing candle trades
110. 4:10because you can see you're making lower
111. 4:12lows and lower highs then it makes a
112. 4:14higher high breaking the trend so when
113. 4:17you're scalping you want to be looking
114. 4:18at a higher time frame and the lower
115. 4:20time frame that you're trading looking
116. 4:22for those three line strikes looking for
117. 4:24those good entries and looking for those
118. 4:26tight stop losses but when you're
119. 4:27keeping in mind the higher time frame
120. 4:30like the one hour and looking for these
121. 4:32double bottoms these are going to be
122. 4:34your huge stop loss trades these are
123. 4:37going to be your long term positions and
124. 4:38you want to enter this trade on the
125. 4:40higher time frame so if this was your
126. 4:43swing high the trend went down you
127. 4:45created a double bottom the trend
128. 4:48reversal trade you're looking for a
129. 4:49rejection off of that double bottom
130. 4:52and your stop loss is going to be
131. 4:54a nice comfortable distance below this
132. 4:57double bottom just in case it makes a
133. 4:59triple and your price target is going to
134. 5:01be where the price crossed a lot on this
135. 5:04swing high or if you've drawn up support
136. 5:06and resistance lines the previous known
137. 5:08support and resistance this trade took
138. 5:10seven days but it did get you 113 points
139. 5:13so basically what i'm trying to tell you
140. 5:14is that if you're scalping you're
141. 5:16scalping with the trend and you're using
142. 5:18these price action indicators like a
143. 5:21three line strike to let you know that
144. 5:23that's going to be your entry price
145. 5:24that's going to be your sniper entry
146. 5:26where you get the shortest stop loss and
147. 5:28you just jab that thing every single
148. 5:30time as the price is continuing in that
149. 5:32trend a trend is all about lower highs
150. 5:35and lower lows or vice versa then once
151. 5:37you make the same low on a double bottom
152. 5:39you know the trend is weakening and you
153. 5:41should be looking for the price to go
154. 5:42the other way short term scalping with
155. 5:44the trend longer term higher stop loss
156. 5:47trades against the trend or if you're
157. 5:49like me and you don't like to do long
158. 5:50long-term trades you just wait for a
159. 5:53nice strong trend to form again and then
160. 5:55you scalp that trend along the way i
161. 5:57hope this video helped you if you want
162. 5:59more information on the three-line
163. 6:02strike watch this video right here if
164. 6:04you want more information on these
165. 6:05double bottoms and double tops check out
166. 6:07this video right here if you guys got
167. 6:09some value out of this video you learned
168. 6:11something new or it gave you that aha
169. 6:13make sure you're dropping a like on
170. 6:14these videos and we will see you in the
171. 6:17next one