Transcription
Here we are on this first example. So, I just want to go over this quick example on the charts and then we'll go over the live trading. You guys will see me take this strategy live and make a couple thousand bucks in a few minutes, which is always cool.
But, as you see here, this white line is the EMA that we put on. This is the 100 EMA. So, we can see obviously we're above the EMA right now, which means we should only be looking for buys. So, since we're above the EMA, we have that checked off on our checklist. We're looking for buys.
Next thing is we need market structure above the EMA. Cuz as you can see right here, price was kind of going up and down through the EMA at this point. As I mentioned, we don't just take the trade as soon as price breaks above the EMA. We need market structure to be made above the EMA or vice versa if we're looking for sales, we need market structure to be made below the EMA.
Now, what does that look like? It literally looks exactly like this where price came up here through the EMA and made a new low right here, still above the EMA, and then it continued up. Once this part happened right here, that was it creating market structure. So, now it's game on. Now, we're just waiting for our entry criteria.
So, as step three said, we're waiting for at least a clean two candlestick pullback to the downside. Here, you see we're having a pullback and these are the candlesticks that I'm talking about where we have no wicks on the top of the candlestick. Now, keep in mind this is vice versa if we're looking for sales. We want to see pullbacks that have these uh type of candlesticks with no wicks on the bottom. But, since we're looking for buys, we want a pullback to the downside. We want to see at least two of these candlesticks. The ones that have literally no wick on the top, but wicks on the bottom. And as you can see, we have one, two, three, four of these, which is great. We need a minimum of two. So, that's checked off. We checked the third part off on our checklist.
Now, all we're waiting for is an entry. If you guys remember, an entry is simply a doji candlestick that's high volume. This is a doji candlestick, as we mentioned, small body with big wicks on the top and on the bottom. This is an indecision candlestick, which tells us that price is about to reverse. So, once we see this, we're entering into the trade for a buy. So, we take our entry right here as soon as this candlestick closes. Remember, we're putting our stop loss right below the candlestick that we entered on since we're in a buy. And we're adjusting this until this risk to reward ratio says at least a one to one. So, we can adjust it till it says a one to one.
And as you can see, we had a little bit of drawdown. Usually, if I'm being honest, this trade hits within a few minutes, but this time price was a little bit indecisive and it ended up hitting within 17 minutes, which is still not a crazy amount of time. Uh like I said, usually you're in and out within a few minutes, but this trade, as you see, hit absolutely beautifully for our one to one following that same exact simple strategy that we just went over, the same checklist that we just went over.
Now, keep in mind, when I say high volume doji candlestick, it simply means that the doji candlestick, the size of this entire candlestick, has to be bigger than either the candlestick before it or the candlestick before that one. And as we can see, if we draw a box around the doji candlestick, that the size of this box is bigger than this candlestick, and it's also bigger than that candlestick before it. So, we entered into the trade.
With this example right here, we have the same thing, we're above the moving average, we made market structure already. We have our doji candlestick, we would enter right here, stop loss right below here, but if you look at the size of this doji candlestick, it's actually not bigger than the candlestick before it, but it is bigger than the candlestick before that one. And that's still classified as a high volume doji candlestick, so I would still take this trade. We'd enter into the trade, stop loss below where we entered at, take profit going for at least a one to one risk to reward ratio, and this trade, as you see, ended actually hitting within 4 minutes, which is usually the amount of time that it takes for this scalping strategy to hit. Simple as that.
So, now that you understand the checklist, you know what to look for, let's go over a live example so you guys can see this live in action, and you know what it looks like in real time. All right. Now, we just need to wait for a pullback here. See if we can get an entry here. All right, looks like we're getting an entry here. >> Order filled. >> A minute. Stops above the doji, and I'm going for 1:1 here. We're up 1,200 right now. We're up 2,300. This is pushing pretty nicely. Nice, we're 4,000 here. A lot of good volume, 5,000. A lot of volume in the market right now.
I think I'm going to just get out of the 1:1 though. I don't think I'm going to hold it for 2:1 because uh I don't know if price is going to reject off this is uh 4-hour zone right down here. So, I'm going to just take a 1:1. Hopefully, we hit it on this candlestick. Here we go, we're up 7,000. Come on, give me my money. >> Order filled. >> Boom. Beautiful. >> Beautiful. $7,300 in a matter of 3 minutes. This strategy is freaking disgusting.
Now, if you didn't know, inside of my inner circle, you actually get to see how I implement all of this information inside of the markets every single day. You get to come and trade live with me every day. You have the opportunity to copy every single trade that I take in real time. You You the ability to ask me any questions cuz I will coach you one-on-one. Now, if that's interesting for you, I'll leave a link for my inner circle in the description of this video to help you get started implementing all of this information.