NQ 1 min scalping - 7 for 7 winners — Transcript

Full transcript

1. 0:09today i wanted to go over a very simple
2. 0:12and effective scalping strategy in
3. 0:15nasdaq 100 futures
4. 0:18it's based on candle structure
5. 0:21a short scalp is set up when you lose
6. 0:24momentum to the upside you know you have
7. 0:26a prevailing uptrend
8. 0:28you get a higher low and a higher high
9. 0:31yet the candle itself closes red
10. 0:34that is right to scalp below
11. 0:37the break of that bar
12. 0:39similarly if you have an impending uh or
13. 0:42a prevailing downtrend
14. 0:44and you
15. 0:46close above the open you've lost that
16. 0:48downside momentum and that's confirmed
17. 0:51when you take out the upside of that bar
18. 0:55this is just another example of a short
19. 0:56scalp they come in lots of different
20. 0:58shapes and sizes they don't have to look
21. 1:00exactly like this
22. 1:04as long as we have these three
23. 1:05conditions a higher high higher low a
24. 1:08red candle
25. 1:09break below
26. 1:11you typically want to use a high atr
27. 1:13market
28. 1:14that's why i use the nasdaq and the
29. 1:16first two hours are great for the nasdaq
30. 1:18because there are typically good ranges
31. 1:20while both the us and europe are open
32. 1:22for business
33. 1:26going to the one minute chart today
34. 1:29i have these little arrows programmed to
35. 1:31show us where we have a long setup and
36. 1:33where we have a short setup
37. 1:35and the line in here is the 10
38. 1:38exponential
39. 1:3910 period exponential moving average
40. 1:42and another filter that makes this
41. 1:45really hit very well
42. 1:47is to only take the long setups
43. 1:49above the 10 period exponential moving
44. 1:52average and only take the short setups
45. 1:54below it
46. 1:56so here if you look at the long setup
47. 2:00and again you know given this atr i
48. 2:02leave the i leave the 10 period atr down
49. 2:05here
50. 2:06so that it reminds me in case we get
51. 2:08into a very tight and choppy market uh
52. 2:10but currently we have a pretty big
53. 2:12swinging market you know where
54. 2:14this line in here is about 20-ish points
55. 2:19so you typically would go for about half
56. 2:21of that so call it 10 points
57. 2:23and you would have twice that
58. 2:25in terms of the stop so let's just say
59. 2:28for today's uh you know sake of argument
60. 2:30we're going to go
61. 2:3110 point target 20 point stop but the
62. 2:34other thing about the um
63. 2:36stop is you'll move it up every single
64. 2:38minute that a new bar has completed like
65. 2:41here we would have entered on this break
66. 2:43and if we stayed with it we would have
67. 2:45moved our stop to here moved our stop to
68. 2:47here moved our stop to here and this
69. 2:48would have taken us out
70. 2:52so the first long setup that comes in
71. 2:53right here
72. 2:55we would have
73. 2:56bought above 95.50
74. 2:59and we went to
75. 3:03920 675 without much heat so about 30
76. 3:07points no heat
77. 3:09this set up here
78. 3:12uh 13
79. 3:13979.50 so call it 79.50
80. 3:19wow went about 60 points no heat
81. 3:23this one here
82. 3:261404
83. 3:274925
84. 3:30these are higher lows higher lows higher
85. 3:32lows
86. 3:3349 25 went to 85.
87. 3:37again here this is a lower low lower
88. 3:39high green candle the high of this would
89. 3:41be 64 and a half
90. 3:44went to 108. so each of these had 30 to
91. 3:4760 points in them
92. 3:49and these are the four
93. 3:51long setups that occurred on the one
94. 3:54minute chart
95. 3:55today
96. 3:57after this point we start
97. 4:00dropping and we're riding under the 10
98. 4:03period moving average exponential moving
99. 4:05average
100. 4:07so here you could see if we took this
101. 4:09long above
102. 4:1149.25 so call it 49.50 you only got to
103. 4:1452.75 barely three points before it
104. 4:16rolled over and failed
105. 4:18same thing here if you take 4650
106. 4:21the size 52 barely five points before it
107. 4:24rolls over and fails
108. 4:25here you got 650 to 1625 call it nine
109. 4:29points
110. 4:30rolled over and failed
111. 4:32you know here
112. 4:3437
113. 4:36to 40 less than 41 less than four points
114. 4:39and it failed so if you see the trend
115. 4:42there these long scalps work above the
116. 4:4410 period exponential moving average
117. 4:47this now let's focus on the short scalps
118. 4:50and
119. 4:54take these
120. 4:55away
121. 4:56here the low was 71 and this low is 61.
122. 5:00so if you were nimble perhaps you caught
123. 5:02it but this is one i would avoid because
124. 5:04we're above the 10 period exponential
125. 5:07moving average
126. 5:08as we come here
127. 5:11this one gave you an immediate winner
128. 5:14this one gave you an immediate winner
129. 5:16this one because it made a let's see
130. 5:1910 and a half 10 and a quarter made one
131. 5:20tick higher high that's why this set up
132. 5:22here immediate winner
133. 5:25same thing here
134. 5:26immediate winner
135. 5:28so
136. 5:29if we look at the short side now
137. 5:32one
138. 5:34two
139. 5:35three
140. 5:36four winners um this is 10 35 so
141. 5:40arguably we would have stopped at 10 30.
142. 5:42so three winners on the short side
143. 5:46three winners on the long side
144. 5:49you know the rest of it is up to trade
145. 5:51management but all of these it would
146. 5:52have been seven for seven with any kind
147. 5:54of mechanical trade management
148. 5:57minimum of 10 points you could have
149. 5:58easily gotten 20 30 some of them as much
150. 6:00as 60 points
151. 6:03so that
152. 6:04just want to pull up this again because
153. 6:06the the key message here
154. 6:08is this structure means something
155. 6:12the fact that you break below a red bar
156. 6:15gives you better odds of success than
157. 6:16breaking below a green bar
158. 6:19and then furthermore if this red bar has
159. 6:21a higher high and a higher low
160. 6:24that gives you a better chance of
161. 6:25success breaking below it as well
162. 6:28and that's all just part of the
163. 6:31price action market structure
164. 6:34now a little bit of bonus content here
165. 6:36let's uh let me remove all of these
166. 6:40things and let's go back to our prior
167. 6:44knowledge of of hoagies
168. 6:47let me remove the short scalp and the
169. 6:49long scalp and let's put in the two bar
170. 6:50hoagie and the three bar hoagie
171. 6:56so
172. 6:57right here we had a three bar hoagie
173. 7:00because
174. 7:03these two bars were inside this bar this
175. 7:05would have initially broken down
176. 7:07and then failed
177. 7:09and when a hoagie fails
178. 7:11you tend to get a big move in the other
179. 7:13direction so in addition to a stop on a
180. 7:16hoagie
181. 7:17you could often want a stop in reverse
182. 7:20now the second hoagie here
183. 7:23you had three bars inside that one bar
184. 7:27and when it broke to the upside
185. 7:30this went from 45 to 96 he got a 51
186. 7:34point
187. 7:35move
188. 7:36in that one minute
189. 7:38then we have a hoagie forming again this
190. 7:40way
191. 7:41let's
192. 7:42see maybe these rectangles will be
193. 7:45cleaner
194. 7:48and once we broke below there we got a
195. 7:50good follow-through move to the downside
196. 7:53and let's see over here
197. 7:56this would be our hoagie one two three
198. 7:59four bars inside
199. 8:01as we broke above it as we broke above
200. 8:0359.75
201. 8:04we went as high as 85 about a 25 point
202. 8:07spike there
203. 8:09now on our downside
204. 8:14this is a little three bar hoagy right
205. 8:16there this bar at this bar this bar
206. 8:19we got good follow through downside
207. 8:22over here
208. 8:24one two three four five minutes within
209. 8:26that one minute when it broke
210. 8:28really good upside
211. 8:32and this is about 10 26 and gets a
212. 8:35little sloppier here but that is
213. 8:37technically a three bar hoagie right
214. 8:39here these two are fully inside this one
215. 8:42you broke below it came back in it but
216. 8:44you know we never took out the high of
217. 8:45that before making that next move down
218. 8:48so even that one would have worked so
219. 8:50you basically had one winner two winners
220. 8:53three winners four winners
221. 8:55and this one initially failed
222. 8:57but then if you were
223. 8:59quick to catch the reversal that would
224. 9:01have also been a winner so
225. 9:03call it one two three four you know
226. 9:05conservatively four winners and a loser
227. 9:07or five winners and a loser if you
228. 9:09reversed on this failed hoagie
229. 9:12if you like our content please make sure
230. 9:14to hit the like button and make some
231. 9:16comments and tell me what else you'd
232. 9:18like me to cover
233. 9:20we're going to be adding a lot of
234. 9:22content in the near future and want to
235. 9:24get your feedback and see what you want
236. 9:26to see
237. 9:27also uh doing this type of execution you
238. 9:30need a very quick uh trigger
239. 9:34and i use interactive brokers uh it's
240. 9:36the best i've found to
241. 9:38execute quickly where you can set up
242. 9:40your
243. 9:41uh
244. 9:41automatic targets your automatic stops
245. 9:43all you have to do is hit the button and
246. 9:45it triggers and sometimes it goes beep
247. 9:47and you're you're done before you even
248. 9:48know what happened
249. 9:50those are the fun scalps and
250. 9:53if you
251. 9:54need a link i'll leave a link to them in
252. 9:56the information below
253. 9:59and yeah i highly recommend them i use
254. 10:00them myself
255. 10:03all right well we still have a few more
256. 10:05hours here and the market is pushing on
257. 10:08its lows let's uh let's see what we get