I Made $4,000 Using This Scalping Strategy — Transcript

Full transcript

1. 0:00so I just made $4,600 on one single
2. 0:02trade using a breakout strategy
3. 0:04including volume and Fibonacci and in
4. 0:06this video I'm going to show you exactly
5. 0:08how to do it with a quick tutorial just
6. 0:10to get you an Insight on how Fibonacci
7. 0:12and Market structure actually work first
8. 0:14we need to identify the overall trend in
9. 0:16this case we're focusing on an uptrend
10. 0:18so we're looking for a series of higher
11. 0:20highs and higher lows this Market
12. 0:22structure confirms that buyers are in
13. 0:24control and we want to follow their
14. 0:26momentum once we've identified the
15. 0:28uptrend our goal goal is to wait for a
16. 0:30breakout above a recent higher high but
17. 0:33instead of entering impulsively we'll
18. 0:36use a Fibonacci retracement tool to find
19. 0:38the best entry point during the pullback
20. 0:41now let's talk about how to use the
21. 0:42Fibonacci retracement to time our
22. 0:44entries after a higher high is formed
23. 0:46we're expecting the price to pull back
24. 0:48and create a higher low this is where we
25. 0:50draw our Fibonacci levels we're looking
26. 0:53for the price to retrace to one of the
27. 0:55key Fibonacci levels ideally between the
28. 0:5838.2% and the 61.8% levels these levels
29. 1:02often act as support in an uptrend and
30. 1:05they'll give us the perfect opportunity
31. 1:06to enter a trade after the pullback now
32. 1:09here's the key part we don't enter the
33. 1:11trade just because the price touches a
34. 1:13Fibonacci level we need further
35. 1:16confirmation this is where volume comes
36. 1:18in once the price retraces to a
37. 1:20Fibonacci level and begins to move back
38. 1:22up we wait for the breakout of the
39. 1:24previous higher high with an increase in
40. 1:27volume this confirms that there's a
41. 1:29strong momentum behind the breakout and
42. 1:31we're not looking at a false signal once
43. 1:34the price breaks the previous higher
44. 1:35high with strong volume we enter the
45. 1:37trade at the candle close above the
46. 1:39higher high this ensures that the
47. 1:41breakout is legitimate and not just a
48. 1:43spike for your stop loss you want to
49. 1:45place it just below the recent higher
50. 1:47low or slightly below the 618 Fibonacci
51. 1:50retracement level this protects your
52. 1:52trade in case of a sudden reversal now
53. 1:54that we've entered the trade let's talk
54. 1:56about where to set your take profit here
55. 1:58is where we're going to use Fibonacci
56. 2:00extensions to Target specific levels for
57. 2:02maximum profit we're looking to Target
58. 2:04the .5 or the. 618 Fibonacci extension
59. 2:09levels these levels are commonly hit
60. 2:12during strong breakouts and provide an
61. 2:14excellent risk to reward ratio the
62. 2:16negative 618 level is particularly
63. 2:19powerful in extended uptrends let's go
64. 2:21through a real trade example so you can
65. 2:23see the strategy in action here we've
66. 2:25identified an uptrend with clear higher
67. 2:27highs and higher lows after the price
68. 2:30makes a new higher high we can see a
69. 2:32pull back to the 50% Fibonacci
70. 2:34retracement level the price touches the
71. 2:3650% level and starts to move higher we
72. 2:38wait for the breakout of the previous
73. 2:40higher high and we see a strong volume
74. 2:42Spike confirming the breakout once the
75. 2:45candle closes above the previous higher
76. 2:47high we enter the trade our stop loss is
77. 2:49placed below the recent higher low and
78. 2:52we set our take profit at the negative.
79. 2:54618 extension as you can see the price
80. 2:56moves up and hits our Target locking in
81. 2:59a solid problem so one additional thing
82. 3:01that I'd like to emphasize in this and
83. 3:03why you shouldn't just go for the
84. 3:04retracement entry I had this big
85. 3:07engulfing candle here rejecting off of a
86. 3:10Fibonacci level I took a long position 1
87. 3:13to four risk to reward ratio and because
88. 3:16I didn't wait for the break out it ended
89. 3:18up reversing on me as it rejected this
90. 3:21Mark again I took an even smaller
91. 3:23position at half a percent risk and that
92. 3:25also went against me once I saw that the
93. 3:27momentum was changing because my stop-
94. 3:30loss should be the confirmation that the
95. 3:32trend is reversing against my initial
96. 3:35bias I immediately entered in a short
97. 3:38position looking left for my takeprofit
98. 3:41and seeing this as the furthest point of
99. 3:43my profit Target and this being the
100. 3:45safer point which is also a bank level
101. 3:48at
102. 3:4919,500 so I ended up taking a short
103. 3:52position again at a smaller risk because
104. 3:54I've already lost two trades so I only
105. 3:57risk a half a percent of $1,000 on this
106. 4:00and a risk reward ratio of 1 to4 you can
107. 4:03see my original confirmation right here
108. 4:05off of a Fibonacci level with a volume
109. 4:08spike in buy orders and then once my
110. 4:10stop loss was hit I jumped down to a
111. 4:12lower time frame to look for volume
112. 4:14spikes to the cell side and on the one
113. 4:17minute chart right when this candle
114. 4:19closed which closed below the wick of
115. 4:21that previous structure I knew I was
116. 4:23good to go so I entered in a short
117. 4:25position as you can see right here this
118. 4:27was my original 1% risk trade then I
119. 4:29risked half a%c on the sell position and
120. 4:31got a 1 to four risk to reward overall
121. 4:34for the day up 1,400 this is why you
122. 4:36should always wait for the break out
123. 4:39like I explained in the video and also
124. 4:41have the proper stoploss so that if it
125. 4:43hits you know you should switch your
126. 4:45bias now enjoy this short clip of my
127. 4:47trade hitting profit
128. 5:01and that's the strategy a simple yet
129. 5:03powerful way to scalp using Fibonacci
130. 5:05retracements and Market structure by
131. 5:07combining these techniques with volume
132. 5:09confirmations you can increase the
133. 5:11accuracy of your trades and Target key
134. 5:13Fibonacci extension levels for better
135. 5:16risk to reward setups if you guys
136. 5:17enjoyed this video make sure you give
137. 5:19this video a like And subscribe to the
138. 5:20channel and if you want even more tools
139. 5:22and education head over to the trading
140. 5:23floor Link in the description below
141. 5:25thanks for watching and we'll see you in
142. 5:26the next video