Notes

hello everyone and welcome to another productive video in today's video I will teach you a scalping strategy based on
price action analysis no indicators are used just a price chart watch till the end and let's do this.
This scalping strategy is popular among Traders and has been used for many years as mentioned we don't use any indicators relying solely on a naked chart.
We
employ two time frames the 15minute
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chart for identifying General market
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movement and levels and the 5 minute
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chart for trade entries we begin with
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the 15-minute time frame once a candle
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closes we Mark two lines at the high and
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low of the candle for this we use a tool
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for drawing
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lines after marking these levels we
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switch to the 5-minute time frame to
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find a potential trade entry here's how
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we trade using this
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strategy one start on the 15-minute time
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frame when a candle closes for example
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let's start from here draw lines at the
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high and low points of the
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candle as you can see here for example
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if a candle closes at 10:00 a.m E A we
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Mark the high and low of that candle
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after Drawing the Line two switch to the
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5 minute time frame please pay
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attention when drawing this on live
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market you pay attention on the
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Candlestick that formed and close before
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the live one which is forming draw the
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low level and the high level of the
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Candlestick now back to demonstration at
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10:00 a.m. eat the 15-minute candle
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started now switch to the 5minute Chart
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time frame note that one candle on
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15-minute time frame is equal to three
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candles on 5 minute time frames which
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started at 10:00 a.m. this corresponds
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to three candles we look at the next
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fourth candle if this fourth candle
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closes Above The High Line we enter a
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long position as the new candle opens if
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it closes below the low line we consider
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a short
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position now how do you set stop loss
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and take profit the stop loss depends on
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the distance between the high and low
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lines if the distance is short set the
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stop loss below the low line if it's a
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wide distance set the stop loss
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somewhere in the middle example in this
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case set it here below the low of the
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middle candle and the profit Target is
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set at a level that gives a risk to
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reward ratio of
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1.5 let's have practical
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example let's go through an
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example one marking levels on the
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15minute chart consider a candle that
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closes at 11:15 a.m. eat
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we draw lines at its high and low of the
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candle like this
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then two switching to the 5minute Chart
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let's see if price broke the resistance
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level and at 11:15 a.m. eat we look at
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the next three 5 minute candles which
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are here 1 2 3 and if the fourth 5minute
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candle breaks and closes Above The High
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Line we enter a long position here as
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the new candle opens
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set the stop loss below the low of the
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third candle set the takeprofit at a 1.5
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risk to reward
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[Music]
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ratio now let me show you a way of
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handling a doe and spinning top
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candles avoid trading when a dogee or
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spinning top forms as these candles
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indicate Market indecision and higher
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risk for example let's watch this
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closely if a dogee forms at 10:45 A.M
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switch to 5 minutes time frame and here
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it is candle started here 1 2 3 and the
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fourth candle closed above the high so
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enter a long position but if you pay
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attention on price movement here you can
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see the strategy might give a signal but
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the risk is higher due to FL flat price
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movement so when a dogee or a spinning
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top candle forms avoid taking any trades
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because that is Sue risky let's cover
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this topic before I end this video
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trading on price
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declines for declining prices the
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process is similar but we focus on
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Breaking the support level this is the
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process one marking levels on the
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15-minute chart when a candle closes
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draw lines at its high and
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low after that two switch to the
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5-minute chart look at the next three
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5minute candles if the fourth candle
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breaks and closes below the low
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Line enter a short position set the stop
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loss above the high of the third candle
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set the take profit at a 1.5 risk to
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reward ratio
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let's go to 15 minutes time
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frame here we got a green Candlestick
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and it's actually a pullback showing a
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declining of a price let's mark its high
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and lows and see how the market plays
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out after
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that switch to 5 minutes time frame we
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can see it here 1 2 3 and as you can see
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it didn't give us a signal to open a
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long position let's go back to 15
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minutes time frame important points the
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fourth 5minute candle won't always break
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the high or low levels in such cases no
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trade is
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entered example let's say we want to
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watch this Candlestick marking its low
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and high
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switch to 5 minutes time frame they are
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here 1 2 3 and here you can see the
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fourth candle didn't break this low so
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we don't enter any trade here what does
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that tell you this strategy is effective
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during clear Market advances or declines
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but less reliable during flat market
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conditions it's best to avoid trading
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when the market is flat make sure when
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taking trades all the rules are met
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because it's not a guarantee that you
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will get all the signals correct the
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most important thing is looking at where
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the fourth candlesticks will break and
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close to remember to make this strategy
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work effectively you must apply risk
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management effective risk management is
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crucial for success with this scalping
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strategy understand that losing trades
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are part of trading and it's impossible
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to win every trade
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Implement a risk management strategy
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such as the 1% rule to limit
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losses that's it for this video thank
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you for watching Remember to test this
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first before trading with your real
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money and if you haven't subscribed yet
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please do so and hit the Bell icon see
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you in the next video
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Lo