I Tested 3 Scalping Strategies on the Same Day — Transcript

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1. 0:00Fibonacci trading is basically trading
2. 0:03the psychology of the markets. If this
3. 0:06iPhone costs $1,000 and then went on
4. 0:10sale 60% off and you could buy it for
5. 0:14$400, you would jump on that
6. 0:16opportunity. The same thing happens when
7. 0:19price is making market structure,
8. 0:22bullish market structure. Every single
9. 0:24higher low is a discounted price where
10. 0:26buyers are more interested in getting in
11. 0:29and continuing that trend. So, let's
12. 0:32jump into the charts and I'm going to
13. 0:34show you how to trend trade like a
14. 0:35master. Now, in yesterday's video, I
15. 0:38showed you how to identify RSI
16. 0:40divergences to find the tops and bottoms
17. 0:43of these trends. But how do you actually
18. 0:45trade these trends and get multiple
19. 0:48positions and multiple successful trades
20. 0:51during a trending market? Now, the
21. 0:53easiest way to identify market structure
22. 0:55is by using the brush tool. Mark up
23. 0:58higher highs and higher lows and then
24. 1:02stop looking at your candles. You can
25. 1:05actually hide them if you want. Now,
26. 1:06bearish market structure is lower lows
27. 1:09and lower highs. Every time a lower low
28. 1:12gets broken and creates a continuation
29. 1:15lower low, these are the ones that you
30. 1:17want to identify as your main higher
31. 1:19highs and higher lows, not all the noise
32. 1:22in the middle. We're only focusing on
33. 1:24lows, not even focusing on the higher
34. 1:29lows. All we want to see is breaks of
35. 1:32structure. Every single one of these
36. 1:34pink lines is a break of the previous
37. 1:37lower low. Now, because we know that
38. 1:40price is making lower lows, price is
39. 1:43continuing to break structure, we know
40. 1:45that we can Fibonacci retracement trade
41. 1:48successfully during this entire trend.
42. 1:51Now, the Fibonacci retracement tool is
43. 1:53the third icon down on your left
44. 1:55toolbar. When you draw on your charts,
45. 1:57it's going to look different if you've
46. 1:58never changed the settings. I like these
47. 2:01settings the best. Here they are. You
48. 2:03can take a screenshot if you want to
49. 2:04make yours look exactly like mine. Now
50. 2:06zooming in, when price breaks previous
51. 2:10structure and starts retracing, you can
52. 2:12draw your Fibonacci retracement tool
53. 2:15from the top to the bottom of the move
54. 2:19that broke structure. This is known as
55. 2:21an impulse move. An impulse move breaks
56. 2:25previous structure. And what I want you
57. 2:27to do when you are trading this way and
58. 2:29you know that market structure is
59. 2:31bearish to get the highest
60. 2:33riskto-reward. I want you to create
61. 2:35pending orders. Your pending orders are
62. 2:37going to be in the Fibonacci gold zone.
63. 2:40Keep in mind the earlier entry the worse
64. 2:43your risk-to-reward. If you enter at a
65. 2:460.5 Fibonacci retracement and your
66. 2:48take-profit is at the end of the impulse
67. 2:50move and your stop loss is at the
68. 2:52beginning of the impulse move, you will
69. 2:54have a 1:1 risk-to-reward ratio. If your
70. 2:57entry is at the 618, you will have a
71. 3:001:1.6 risk-to-reward ratio, which is
72. 3:03much better. Sometimes your pending
73. 3:05orders might not get tagged in, but
74. 3:07that's okay because this is the best way
75. 3:09to do it because this is the highest
76. 3:12risk-to-reward. The reason why we target
77. 3:14the bottom of the impulse move is
78. 3:16because we do not know for sure if price
79. 3:18will make a new lower low, but we can
80. 3:20almost assume that price will make a
81. 3:22double bottom if the trend is dying. So,
82. 3:25a nice safe take-profit is the bottom of
83. 3:28that impulse move. And you will do this
84. 3:30on every impulse move that broke the
85. 3:33previous structure. And you will have
86. 3:34your pending orders ready at the 618
87. 3:37retracement. And you can see in this
88. 3:39trend, we did not get tagged in many
89. 3:42times along these retracements. But
90. 3:44because we're smart and we want the best
91. 3:46risk-to-reward, we were able to capture
92. 3:49two wins and one loss out of here. So if
93. 3:51your risk-to-reward is 1 to 1.6, you got
94. 3:543.2% for the winners and minus 1% for
95. 3:57the one loser. That gives you a net
96. 3:59profit of 2.2%. So, with or without the
97. 4:02candles, if you draw your zigzags to the
98. 4:04exact highs and lows of the wicks,
99. 4:07you'll be able to see more clearly
100. 4:09without the anxiety of every single
101. 4:11pullback candle that you can now trade
102. 4:14with the trend successfully. But the
103. 4:17most important thing is being able to
104. 4:18trade with the trend on the pullbacks to
105. 4:21get the highest risk-to-reward. And if
106. 4:24you really want to go crazy, you can
107. 4:26actually hold these takerits until you
108. 4:28can clearly see that the market trend is
109. 4:31over and we are no longer making higher
110. 4:33highs and higher lows. That's a huge
111. 4:36incredible risk-to-reward ratio. So
112. 4:38hopefully this video gave you a cleaner
113. 4:41look without all the noise of how to
114. 4:43trade with the trend with the highest
115. 4:45probability for success, the best entry
116. 4:48points, and the best risk-to-reward.
117. 4:50Now, in tomorrow's video, because this
118. 4:53is an entire series, I'm going to be
119. 4:55putting all three of these trading
120. 4:58strategies together in a single day on a
121. 5:01low time frame so we can scalp the
122. 5:03markets many times per day with the
123. 5:06highest risk-to-reward ratio and the
124. 5:08highest probability for success. We'll
125. 5:10be putting together RSI divergences,
126. 5:13Fibonacci retracements, as well as
127. 5:15breakout trading strategies. Thank you
128. 5:17so much for watching and I can't wait to
129. 5:19see you in tomorrow's video.
130. 5:24In today's video, we're going to be
131. 5:25putting it all together. RSI
132. 5:27divergences, Fibonacci retracements, and
133. 5:31breakout trading on a one minute and
134. 5:33five minute time frame. I want to show
135. 5:35you how I scalp the markets multiple
136. 5:38times per day based on what price is
137. 5:41actually doing. I'm not analyzing higher
138. 5:43time frames. I'm only focusing on that
139. 5:45one time frame and what price is doing
140. 5:47right now. So, let's get into it. Now, I
141. 5:51want to go over the trades that I saw
142. 5:53happen on Wednesday, October 7th. If you
143. 5:55guys are on my Telegram group or have
144. 5:57watched my previous videos, you've seen
145. 5:59that I've been doing a 30-day challenge
146. 6:00with you guys trading the overnight
147. 6:03breakout session strategy. The concept
148. 6:06is very simple. The Tokyo session has
149. 6:08lower volatility and less participants
150. 6:11in the market because the rest of the
151. 6:13world is asleep. All banks in Europe,
152. 6:16all banks in America, not functioning.
153. 6:18So my theory is that this should be
154. 6:21drawn as an area of consolidation. Even
155. 6:23if it does trend in a specific direction
156. 6:25and then at a specific time, if price
157. 6:28has a 5-minute candle that closes
158. 6:30outside of that range, I enter in in the
159. 6:33direction of that candle. This example
160. 6:35right here, we had a five-minute candle
161. 6:37breakout of the Tokyo session range and
162. 6:39I'm assuming that the market will
163. 6:41continue in that direction for a
164. 6:44majority part of the day. So, I enter in
165. 6:46my short position and my stop loss is
166. 6:4950% of the value of the Tokyo session.
167. 6:53And I don't put my stop loss halfway
168. 6:55between. I measure the range. We have 28
169. 6:58pips. So, my stop loss is 14 pips and my
170. 7:01takerit is two times the risk. Now,
171. 7:04because that is my bias for the day now
172. 7:06that I've entered in a trade, I am now
173. 7:09looking for trades to get into in
174. 7:12confluence with that in that same
175. 7:14direction. So, let's zoom in and get in
176. 7:17on a lower time frame. We can now
177. 7:19identify that price is trending down.
178. 7:22And when price is trending down, it will
179. 7:23have pullbacks in the opposite
180. 7:25direction. So, if I take my Fibonacci
181. 7:27retracement tool and start measuring
182. 7:29once price pulls back more than 33% of
183. 7:33the impulse move, I'm looking to get in
184. 7:35at the Fibonacci gold zone, entering a
185. 7:38short position at the 618 retracement
186. 7:40with a stop-loss at the top of the
187. 7:43impulse move, getting me a 1:1.6
188. 7:46risk-to-reward ratio. Another confluence
189. 7:49with this trade was seeing a rejection
190. 7:50candle and a powerful momentum candle
191. 7:53once it rejected off of the 200 EMA,
192. 7:55which is why I have it on my charts all
193. 7:57the time because it helps me visually
194. 8:00realize that the trend is in that
195. 8:02direction. So that's trade number one.
196. 8:04That's trade number two. Now I'm waiting
197. 8:07for a continuation of the trend and
198. 8:09pullbacks. And again, I'm not drawing my
199. 8:12Fibonacci retracement tools until price
200. 8:14has reached 33% retracements. Then I set
201. 8:18my pending orders and every time price
202. 8:21breaks structure, I keep looking at
203. 8:24pullbacks to the Fibonacci gold zones.
204. 8:26All the while in my main trade, but
205. 8:28being able to scalp the markets on these
206. 8:31pullbacks to increase the number of
207. 8:33trades that I have and increasing the
208. 8:35probability that I will end the day with
209. 8:38multiple good risk-to-reward high
210. 8:40probability trades. Now, once our
211. 8:42original take-profit got hit right here,
212. 8:45we already had two successful trades and
213. 8:48you can see that on the one minute time
214. 8:49frame, this trend has been going on for
215. 8:52a very long time. You don't want to keep
216. 8:55trading Fibonacci retracements forever.
217. 8:58You want to get two, three, maybe four
218. 9:01solid moves out of a single trend
219. 9:03because eventually the trend dies off.
220. 9:06And you can identify die- offs of trends
221. 9:09using a momentum indicator like the RSI.
222. 9:12You can see we made a low right here and
223. 9:14a lower low right here. Whereas the RSI
224. 9:18shows a loss of momentum. A loss of
225. 9:20momentum means that the sellers are no
226. 9:23longer interested in keeping pushing
227. 9:25that price down. Once the sellers lose
228. 9:28momentum, the buyers are more likely to
229. 9:31take over. So, we shouldn't at this
230. 9:33point be looking at Fibonacci
231. 9:35retracement trades that are bearish
232. 9:38because if you measure this last
233. 9:39Fibonacci tool, you can see that we got
234. 9:42a good entry at the Fibonacci gold zone,
235. 9:45but price did not want to make a new
236. 9:47lower low because the sellers are no
237. 9:50longer interested in pushing the price
238. 9:52down. So, not only are you looking at
239. 9:54the RSI for divergences, you have your
240. 9:56bias based on what the breakout was of
241. 10:00the Tokyo range because what I've seen
242. 10:02statistically is that price tends to
243. 10:04continue in the direction of the
244. 10:06breakout for a majority of the day. So
245. 10:08if you already have your bias for the
246. 10:11day and you are trading a breakout of
247. 10:13the consolidation range, you can use
248. 10:15Fibonacci retracements to scalp the
249. 10:18market on the way down of your bias. And
250. 10:21using the RSI, you can identify when you
251. 10:25should be no longer looking for those
252. 10:27Fibonacci retracements in your bearish
253. 10:30bias because the momentum has died off.
254. 10:33And the great part about the RSI
255. 10:34divergence is that then you can start
256. 10:37trading in the opposite direction. You
257. 10:40get an RSI divergence, you get a
258. 10:42rejection candle with a wick and a
259. 10:44strong bullish candle. You can now enter
260. 10:47in a long position with your stop loss
261. 10:50at the structure because you know that
262. 10:53if the structure is broken again, your
263. 10:55theory or your assumption on this trade
264. 10:58is null and void and again targeting a 1
265. 11:00one.5. So you can even scalp your way
266. 11:03out of that downtrend. Basically your
267. 11:07last trade of the day because you know
268. 11:09momentum is dying off. So you can just
269. 11:11take a little piece of it. Even if it
270. 11:13goes back up to the moving average,
271. 11:15you're still safe with your
272. 11:16risk-to-reward and you're not
273. 11:17anticipating a huge swing trade. So in
274. 11:20this one single day during the trend, we
275. 11:23didn't take any opposite trade signals.
276. 11:25And we had three successful scalps out
277. 11:28of the market. one of which was massive
278. 11:30because it was a breakout trade. And
279. 11:32this is how you should set your day up
280. 11:33trading every single day. You should
281. 11:36have your bias and you should trade
282. 11:38Fibonacci retracements in accordance
283. 11:41with that bias. And you should know when
284. 11:43your trading day is over because I don't
285. 11:45want you trading bearish all day,
286. 11:48getting one bullish pullback and then
287. 11:50thinking that the trend and market
288. 11:52structure is going to completely reverse
289. 11:54from there because that's not
290. 11:56statistically likely. Trends hold for a
291. 11:58very long time. Pullbacks happen.
292. 12:01Momentum dies off. But then price
293. 12:03consolidates. You've got a couple of
294. 12:05good trades. You traded one solid trend
295. 12:08on a lower time frame. You scalp those
296. 12:10moves. You're in. You're out. And you
297. 12:12can wait for the next day. This takes a
298. 12:14lot of stress, energy, brain power to
299. 12:18sit on these charts, wait for these
300. 12:19retracements, and look for all of these
301. 12:22signals. So after two, three, four
302. 12:24trades, dude, I don't want you to trade
303. 12:26anymore after that. You've already used
304. 12:28all of your brain power and ability to
305. 12:31control your emotions during a very
306. 12:33stressful time, risking real money. And
307. 12:36now you can chill, do some chores, other
308. 12:39obligations, and wait for the next day
309. 12:41to create a new bias. Hopefully you guys
310. 12:44enjoy this little video series of mine
311. 12:46where I break down how my brain works
312. 12:49when I'm trading these three strategies,
313. 12:51how I implement all three every single
314. 12:54day. And now you know how I put all of
315. 12:57them together. I really appreciate you
316. 12:58guys taking the time to watch this video
317. 13:01series. and let me know in the comments
318. 13:03section if you want me to group all of
319. 13:05these together and make one long hourong
320. 13:08tutorial because that's why I split this
321. 13:10up into sections because most people
322. 13:11don't have an hour to sit down and watch
323. 13:13YouTube. So, thank you so much for
324. 13:15watching. I really appreciate you guys
325. 13:18and I will see you in the next