The Best Scalping Stategies With Proof They Work — Transcript

Full transcript

1. 0:00If you are a breakout trader, you need
2. 0:01to watch this video because today's
3. 0:03breakout trading session was absolutely
4. 0:06perfect and I missed the opportunity to
5. 0:08take an additional six trades. Let's
6. 0:11break everything down in this video
7. 0:13including RSI divergences, Fibonacci
8. 0:15retracements, and the overnight Tokyo
9. 0:17breakout range. All right, we're trading
10. 0:19EUR/USD on a 5-minute time frame. As I'm
11. 0:22recapping this, I will show you every
12. 0:25single screenshot that I shared on
13. 0:26Telegram explaining what I was thinking
14. 0:29during this entire trade. So, because of
15. 0:31daylight savings time, I've had to
16. 0:33adjust the way that I look at this
17. 0:35breakout strategy. As you can see right
18. 0:37here, my Tokyo range filter ends at 7:00
19. 0:40a.m. my time, which is currently UTC +1.
20. 0:43It used to be UTC +2 and so now I'm a
21. 0:45little bit hesitant on these breakouts
22. 0:47until I can actually backtest it. So, at
23. 0:497:46 this morning, I said, "Okay, here's
24. 0:51the deal. This is what I'm thinking, a
25. 0:53pending order at the top of that wick."
26. 0:55Within 5 minutes of making that post,
27. 0:58price had hit my entry. It wasn't exact,
28. 1:00but due to slippage, that's where I got
29. 1:02it. Now, this original stop-loss and
30. 1:04take-profit pseudo tool on here wasn't
31. 1:06good enough for me. So, what I did was I
32. 1:09set my stop-loss to 10 pips and my
33. 1:11take-profit up here. It was a 1:3
34. 1:13risk-to-reward ratio. So, let's get rid
35. 1:15of that old tool so that we're not
36. 1:17confused here. Now, when I'm in a trade,
37. 1:18I like to be on the 1-minute time frame.
38. 1:20This helps me see every single
39. 1:22individual momentum move and I like to
40. 1:25read the RSI on the 1-minute time frame.
41. 1:27That's where I look for my divergences.
42. 1:29Ignore these two trend lines. I drew
43. 1:31them right about here, but this is the
44. 1:33way the price trends. We have the
45. 1:34overall uptrend. Price came down, faked
46. 1:37people out, and then shot back up. And
47. 1:39price had a lot of momentum today. Now,
48. 1:41at this point right here, I told
49. 1:43everybody on Telegram that I am moving
50. 1:45my stop-loss to break even because I
51. 1:48don't like this divergence. You can see
52. 1:51price is making higher highs while the
53. 1:53RSI is making lower highs. I said the
54. 1:57RSI, in order to stay bullish and have a
55. 2:00lot of bullish momentum. Because the RSI
56. 2:02is a momentum indicator, we need to stay
57. 2:05above 70. When it's above 70 for a long
58. 2:08time, price just rips. And within a few
59. 2:11minutes, that break above the 70 on RSI
60. 2:14happened. At this point, everybody
61. 2:16following this trade with me is in a
62. 2:17risk-free trade. Even if it goes against
63. 2:19you, you lose $0. Now, as price kept
64. 2:23climbing up, we got another divergence
65. 2:26where price is making a higher high, but
66. 2:28the RSI, the one peak, is above the 70
67. 2:32range, and then the next peak is below
68. 2:34the 70 range. That means for me a loss
69. 2:37of momentum. So, what I decided to do at
70. 2:39this point, because the momentum was
71. 2:41bullish, I decided to make a pending buy
72. 2:44order at the top of this range. Because
73. 2:46if it goes to make a new higher high, we
74. 2:49are going to rip with momentum. Price
75. 2:52tagged me in for my second position,
76. 2:53rejected that trend line again, and kept
77. 2:56moving up. Broke below the trend line,
78. 2:58and immediately went above it again. At
79. 3:01this point on Telegram, I wrote, "You're
80. 3:03at 1.5 rewards so far. So, of the
81. 3:05original 1 to 3 risk-to-reward ratio,
82. 3:09you're now break even, and you're up
83. 3:111.5% on that trade." Now, previously,
84. 3:13because I like looking left for
85. 3:15structure, I said I've been thinking
86. 3:17about this level since it's a major bank
87. 3:19level at 1.12000.
88. 3:22And if you look back, this is an area of
89. 3:24resistance. Meaning that when price hits
90. 3:27it, doesn't like to break through it,
91. 3:28and will reject it. And at this point, I
92. 3:30said on Telegram, "I'm moving my stop
93. 3:32loss of my first trade entry to the
94. 3:35entry of my second trade." Meaning that
95. 3:37both of my stop losses are at this level
96. 3:40right now. So, regardless, I win
97. 3:43basically both trades. Price went down,
98. 3:45touched that trend line again, rejected
99. 3:47up, and just went straight vertical
100. 3:49after that. We hit the original take
101. 3:50profit. I got out at 1.1210
102. 3:54because of the doji candle. And I said,
103. 3:56"I think it's time for a retracement
104. 3:58because price is way too vertical." Now,
105. 4:00I promised you guys that I would show
106. 4:01you what trades I missed during this
107. 4:04move. This was a beautiful breakout
108. 4:06move. I added to my position because the
109. 4:08momentum was there. And I'm going to
110. 4:10delete one of these trend lines really
111. 4:12quick because we held this stronger
112. 4:15bullish trend more closely than the
113. 4:17other one. Now, now, you guys know that
114. 4:19I love Fibonacci retracements. And when
115. 4:21the momentum is there, Fibonacci
116. 4:22retracements work. I was so focused on
117. 4:25Telegram, and I was already in two
118. 4:27positions, so I didn't want to add any
119. 4:28more as they were quite heavy. But look
120. 4:30at this. We have our bullish price
121. 4:32structure, correct? This is the best way
122. 4:34to mark up market structure so that you
123. 4:36can use Fibonacci retracement tools.
124. 4:38Take your Fibonacci retracement tool,
125. 4:40put it up on your chart, copy these
126. 4:42settings exactly, and now from the
127. 4:44bottom to the top of every single one of
128. 4:46these moves, it rejected, long rejection
129. 4:49wick at the 618. Then again, the move
130. 4:52that broke structure, rejection wick on
131. 4:54the trend line and the 618. Then again,
132. 4:56the move that broke structure, doji
133. 4:58candle, rejection candle at the 618.
134. 5:01Again, rejection wick, bullish candle at
135. 5:03the 618. Again, price went up to break
136. 5:06previous structure, rejected at the
137. 5:08Fibonacci gold zone. This was an
138. 5:09additional 1 2 3 4 5 trades that I could
139. 5:13have taken. You couldn't ask for better
140. 5:15price movement than this. I'm glad today
141. 5:17worked out. Fantastic way to start a
142. 5:20Monday. Hopefully, you guys can see the
143. 5:22power of using breakout strategies
144. 5:24following the prices momentum, RSI
145. 5:26divergences, and Fibonacci retracements.
146. 5:29If you did take this set up with me
147. 5:30today from the Telegram group, let me
148. 5:33know in the comments down below and how
149. 5:34you felt during this whole process.
150. 5:36Thank you so much for watching. I really
151. 5:38appreciate you guys, and we will see you
152. 5:40in the next one.