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The BEST 5 Minute Scalping Strategy Ever (Simple and Proven) — Transcript

by Data Trader · 2,890 words · 402 segments · language en · Watch on YouTube

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0:00In this video, I'll reveal a simple yet
0:02effective scalping strategy that works
0:04every single day. The strategy doesn't
0:06rely on any indicators or long
0:08preparations. It's completely
0:09rule-based, and all you need to do is
0:11follow a simple three-step checklist
0:13before entering a trade. Now, to prove
0:15that this strategy is consistently
0:17profitable, I'll also show you some real
0:19trade examples on popular markets like
0:21crypto, forex, and gold. What's great
0:24about this strategy is even though it's
0:26profitable on its own, you can still
0:27combine it with other systems like price
0:29action, trends, or even your current
0:31strategy to instantly boost its
0:33performance. That's why adding this to
0:34your toolbox could be a huge gamecher
0:36for your trading. So, what is the
0:39strategy for this strategy? The only
0:41thing you need is one candle. Now, you
0:43might be wondering, how is one candle
0:45enough to build a profitable system?
0:47Well, we're not just using any candle.
0:49We're using what's called the 4hour
0:51range, which is simply the range between
0:53the high and low of the first 4hour
0:55candle that forms during the day. So,
0:57the way this system works is when we're
0:59scalping on a lower time frame like the
1:015-minut chart, we can actually use that
1:034hour candle's range to find potential
1:06entry points throughout the day. To
1:08execute this strategy, all it takes is a
1:10simple three-step checklist, which we're
1:12going to go through all of that in this
1:13video. So, step one, the first thing you
1:16want to do is mark the high and low of
1:18the first 4hour candle that forms during
1:20the day. Here's how to do that on
1:22Trading View. First, choose any chart
1:24depending on the asset you're trading.
1:26For this example, I'm using the Bitcoin
1:28chart. Then, make sure the time frame is
1:30set to 4 hours, which means each candle
1:32represents 4 hours of price movement.
1:35Next, go to the time zone setting on the
1:37bottom right corner of the chart, and
1:39select New York time. Now, this step is
1:42very important because we want the first
1:444-hour candle to be based specifically
1:46on the New York time. Next, hover to the
1:48first 4hour candle that formed on
1:50today's date. In this example, since
1:52it's June 23rd, the first 4hour candle
1:54that formed today is this one. Then,
1:57simply draw a line at the high and low
1:58of that candle and extend both lines to
2:01the end of the day. That's your 4hour
2:03range on this chart. Now, an important
2:05thing to remember is make sure that the
2:07first 4hour candle has fully closed
2:09before marking the range. If the candle
2:11is still forming, wait for it to fully
2:13close first. So, once the 4hour range is
2:16identified, we move on to step two,
2:18which is the scalping setup. But before
2:20that, I want to quickly mention that
2:22every single day I share daily market
2:24analysis and trade setups inside my free
2:26Telegram community. For example, I once
2:28shared a setup on a coin called SUI and
2:31just one week later it was up 22%. So,
2:34if you want to learn how a professional
2:35trader analyzes the market daily, make
2:37sure to join my free Telegram community.
2:39The link is in the description. Now,
2:41back to step two. So, after the 4hour
2:44range is identified, we go down to the
2:465-minut time frame to look for scalp
2:48setups. So, the setup we're looking for
2:50is when the 5-minute candle closes
2:52outside of the range, either the range
2:54high or range low. But again, the key
2:57here is the candle must fully close
2:59outside. So, wicks alone don't count.
3:04After the breakout, we then wait for
3:06price to re-enter and close back inside
3:07the range again, but make sure that all
3:09of this happens within the same day as
3:11the 4hour range we marked.
3:14Once that sequence plays out, we move to
3:17step three, which is our entry. In this
3:20example, since price broke the range
3:21high, that's a signal to go short.
3:25For the stop loss, we place it at the
3:27exact high of the breakout move. And for
3:29the take-profit, aim for at least two
3:31times the stop-loss size. And here,
3:34price came down and hits the profit
3:36target. Now, let's look at another
3:38example. Here, we're on the Bitcoin
3:41chart on the 5minut time frame. And
3:43right here, we've already got the 4hour
3:45range marked out. So, that's step one
3:47done. We can now move to step two. Look
3:49for the trade setup.
3:51In this example, we can see that price
3:53came down and broke below the range low.
3:55However, the candle didn't actually
3:57close below it, only the wick. That
3:59means the setup still isn't valid. But
4:01shortly after, we see another breakout,
4:04but this time the candle does close
4:05below the range low. So, that's the
4:07confirmation we needed. Now, we wait for
4:09price to re-enter and close back inside
4:11the range again. And right here, the
4:14candle closes back inside. So, that
4:16completes step two. Now, we move to step
4:18three, which is our entry. Since price
4:20broke the range low and then re-entered,
4:23this is a signal to go long.
4:25For the stop loss, we place it at the
4:27exact low of the breakout move. And for
4:29the take-profit, we set it at two times
4:32the size of our stop-loss. As you can
4:34see here,
4:37price moves up and hits the takerit
4:38target. Now, keep in mind, as long as
4:41we're still within the same trading day
4:42as the 4hour range we marked, we can
4:44still take more trades if another valid
4:46setup shows up. So, as we let the chart
4:49play out, we can see that price is
4:50trading well outside of our 4hour range.
4:53However, it didn't manage to re-enter
4:55again until the end of the day. That
4:57means for this trading day, there were
4:58no more valid entries to take. But even
5:01with getting just one trade today, it
5:03was a highquality setup and we walked
5:04away with solid profits. Now that you
5:06understand how the overall strategy
5:08works, let's take a look at some real
5:10trade examples across different markets
5:12so you can see just how well this
5:14strategy performs. So, let's start with
5:16crypto. Here I'm on the Bitcoin 5-minute
5:19chart and I already have the 4hour range
5:22marked right here. We can see price
5:24broke out and closed below the range
5:26low. Then it quickly closed back above.
5:29That gave us a long entry. Stop loss
5:31goes at the low of the breakout and take
5:33profit set at two times risk. And as you
5:37can see price hits the profit target,
5:39giving us a 2 R profit.
5:42After that, price went out of the range
5:44again, but didn't close back inside,
5:46which means there were no more setups
5:47for today. Now, for the next day, I
5:50marked the high and low of the 4hour
5:52range. Here, the 5-minute candle broke
5:55above the range high, then closed back
5:57inside. So, this will be a short signal.
6:00Stop loss goes at the range high and
6:02take profit at two times risk. And here,
6:05price hits the takerit target, giving us
6:07a 2 gain. Next price dropped and broke
6:11below the range low. After that it
6:13re-entered inside the range. So this
6:16will be a long setup. Stop loss goes at
6:18the range low. Take profit at two times
6:21risk.
6:22And once again price hits the target
6:25giving us another two R profit. On the
6:28same day
6:29price gave us another setup. It closed
6:31above the range high but then closed
6:33back inside. That signaled a valid short
6:36entry. Stop loss goes at the range high
6:39take profit at two times risk. And here
6:42price also hits the profit target giving
6:44us another two R profit. Later in the
6:47same day price made a huge dip but then
6:51re-entered inside the range. So this
6:53actually gives us a long entry setup.
6:55But here's the thing with this setup.
6:57The breakout was quite huge which means
6:59if we were to place a stop loss at the
7:01low it would be a very large stop-loss.
7:04So for these types of scenarios, instead
7:06of using the exact low of the range, I
7:08looked for the nearest key level to
7:10place the stop loss. In this case, there
7:12was a small resistance level. So we set
7:14the stop loss there instead. For the
7:17takerit, set it at two times risk. Here
7:20price hits the target perfectly. Another
7:23two R profit secured. So that concludes
7:25the setups for today. Now moving on to
7:28the next day. Again, we have the 4hour
7:31range marked. Price broke below and
7:33closed under the range low but then came
7:36back inside. That gave us a long entry.
7:39Stop loss goes at the lows. Take profit
7:42at two times risk. And here the trade
7:45actually ended up being a loss. So this
7:47will be a 1 R loss. Now the reason I'm
7:50showing you this is because I want to be
7:52fully transparent about the results of
7:53this strategy. I'm not only going to
7:55show you the wins but also the losses.
7:58On the same day price actually gave
8:00another long setup. We can place a stop
8:03loss at the range low and take profit at
8:05two times risk. And here price moved up
8:08a little but then dropped back down and
8:10hits our stop loss once again. So that's
8:13another one R loss for the day. After
8:15that price didn't reenter the range
8:18until the end of the day. So that wraps
8:20up today's session. Now let's see the
8:22final results. Here you can see all the
8:24trades we back tested. Out of seven
8:26trades we took, the strategy gave us
8:28five wins and two losses with a total
8:31gain of 8R. That's about a 72% win rate
8:34on the crypto market, which is extremely
8:36impressive considering we only used the
8:39very basic version of the strategy. Now,
8:41of course, if we want to get a more
8:43accurate performance, we would need to
8:44back test using way more than just seven
8:46trades. So, I definitely recommend you
8:48test it yourself on a larger sample, but
8:51the point of this is just to show that
8:52even with using just the basic version
8:54of the system, it can achieve
8:56profitability in real trading scenarios.
8:59Now, before we continue, if you're
9:00looking for the best trading platform, I
9:02really recommend using Blow Fin. They're
9:04one of the top crypto exchanges out
9:06there, and right now they're giving an
9:08exclusive reward just for my viewers.
9:10Anyone who signs up using my link, you
9:12can claim up to $3,000 in bonuses simply
9:14for trading on their platform. So don't
9:17miss out. Start trading on Blow Fin
9:18using my link and grab those rewards.
9:21Now back to the video. So let's see how
9:23the strategy performs on the Forex
9:25market. Here I'm on the EuroUSD 4hour
9:29chart. To apply the 4hour range in
9:31Forex, it's the exact same process. Go
9:34to the time zone setting at the bottom
9:36right of the chart and select New York
9:38time. Then find the first 4hour candle
9:40that formed on the current date. Since
9:42it's August 4th, the first 4hour candle
9:45that formed is this one. Simply draw a
9:47line at the high and low of that candle
9:49and extend both lines to the end of the
9:51day. So this is your 4hour range. Next,
9:54go down to the 5minut time frame to look
9:56for the setups
9:59here. Price closed above the range high
10:01and then back inside. So that is a short
10:03setup. Stop loss placed at the highs.
10:05Take profit at two times risk. This
10:08trade hits the stop loss. So that's a 1
10:11R loss. Shortly after, price re-entered
10:14again, giving another short setup. Stop
10:16loss at the highs. Take profit at two
10:19times risk.
10:20This time price hit the take-profit
10:22target for a 2 R gain. On the same day,
10:25price gave another short setup stop-loss
10:28at the highs, take profit at two times
10:30risk.
10:31Price then hits the profit target,
10:33giving us a 2 R gain. But then price
10:37gave yet another short entry. Stop loss
10:40at the highs. Take profit at two times
10:42risk. This one ends up in the profits
10:45giving us another two R gain. And that's
10:47the end of today's range. Moving on to
10:50the next day. Here we marked the 4hour
10:53range. Then price quickly gave a long
10:55setup. Stop loss at the lows. Take
10:58profit at two times risk. Price hits the
11:01target. So that's a two R gain. Later
11:03price gave another long setup. Stop loss
11:06is set at the lows. Take profit at two
11:08times risk and price hits the target
11:11again. Another two R gain. After that
11:14price broke above the range and didn't
11:17re-enter until the end of the range. So
11:19there were no setups taken. On the next
11:22day we have the 4hour range marked.
11:24Price then broke above the range high
11:26and stayed there without re-entering,
11:28which means there were no setups taken
11:29for today. So let's see the final
11:32results. Out of six trades we took on
11:34EuroUSD, the strategy gave us five wins
11:37and only one loss with a total gain of
11:409R. That's about an 83% win rate on the
11:43forex market, which is a very solid
11:45result. Now let's look at how the
11:47strategy performs on the gold market.
11:49Here I'm on the XAU 5minut chart and we
11:52already have the 4hour range marked for
11:54today. Price broke below the range low.
11:57After it traded below for a while, it
11:59then closed back inside, which means
12:01technically this is a valid long setup.
12:04Now, since the breakout was too large,
12:06we couldn't place the stop loss at the
12:07lows. Instead, we can use the nearest
12:10key level. In this case, there was an
12:12order block here, which we can use to
12:14set our stop loss. We then set a
12:16take-profit at two times risk. Price
12:18then hits the profit target, giving us a
12:202 gain. Shortly after, price broke above
12:24the range high, but closed back inside.
12:26So this is a short entry. Stop loss at
12:28the highs. Take profit at two times risk
12:32here. Price hits the stop loss. So
12:34that's a 1R loss. Then price traded
12:37above the range for a while before
12:39closing back inside giving us a short
12:41setup. Now since the breakout was too
12:43large, we instead used a nearby
12:45resistance for the stop loss. And the
12:47take-profit is set at two times risk.
12:50And this time price hits the target
12:52securing a 2 gain. Moving on to the next
12:55day, we had the 4hour range marked.
12:58Price broke below the range low, then
13:00re-entered, which gave a long setup.
13:02Stop loss is set at the lows, take
13:04profit at two times risk. And price hits
13:07the target, so that's a 2 gain. Shortly
13:10after, price re-entered the range high,
13:12giving us a short setup. Stop loss at
13:14the highs, take profit at two times
13:16risk. Price hits the takerit once again,
13:19another two R gain. Then price closed
13:22slightly above the range high and then
13:24closed back inside. Another short setup.
13:26Stop loss at the highs. Take profit at
13:28two times risk. Here price hits the
13:31profit target securing another two R
13:34gain. After some time price gave another
13:37short setup. We place our stop loss at
13:39the highs. Take profit at two times
13:41risk. This time price hit the stop loss.
13:44So that's a one R loss. Now moving on to
13:47the next day.
13:49Price broke above the range high and
13:51re-entered, giving a short entry. Stop
13:53loss at the highs, take profit at two
13:55times risk. Price hit the stop loss, a
13:58one hour loss. Shortly after, price gave
14:01another short setup. Stop loss at the
14:03highs, take profit at two times risk.
14:06Price hit the stop loss again. So that's
14:08another 1 hour loss. But then price
14:10re-entered the range once more. So
14:12that's another short entry. We place a
14:14stop loss at the highs and take profit
14:16at two times risk. This time price hits
14:19the target giving us a 2 R gain. So
14:22that's the end of this range. Now let's
14:24see the final results. Out of 10 trades
14:26we took on gold, the strategy gave us
14:29six wins and four losses with a total of
14:318 R gain. That equals to a 60% win rate,
14:34which again are very solid returns. So
14:38those are proof that the simple 4hour
14:40range strategy works extremely well even
14:42when traded on different markets. And
14:44remember this was the most basic version
14:46of the strategy. We didn't even combine
14:47it with other concepts yet, but even
14:49then, we still got very solid returns.
14:52So, this is definitely a strategy you
14:53can try out for yourself. Now, if you
14:56like the way I break down concepts like
14:57these and want to see how I analyze the
14:59markets in real time, I suggest you join
15:02my free Telegram community. Link is in
15:04the description below. Inside, I share
15:06my market outlooks and trade setups
15:08every single day with my subscribers.
15:10So, thanks for watching and I'll see you
15:12in the next video.

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