1 Advanced Scalp Trading Tactics PDF

Advanced Scalp
Trading Tactics
IntradayMoney.in
www.intradaymoney.in
The whole idea of full time trading is to identify repeatable events and be consistent in
profits while minimizing the loss.
www.dailyniftytips.in
Somesure
traders
might
argue that some indicators work really well for them,
only
shot
tips..!
Ask the question: How consistently do they work for you?, because a flip of a coin can
work 50 % of the time.
BOLD STATEMENT: Most the time, traditional technical analysis does not work.
It makes sense, however there are enough big boys who are highly capitalized enough to
IntradayMoney.in
manipulate most traders mindset.
BOLD STATEMENT: A method that works far better - Price Action!
Most traders have never heard of this little known idea of trading the price, instead of
trading the indicators
The truth is that Price Action is far superior to any indicator available in the marketplace.
Understanding Candles
only sure shot tips..!
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Bulls Win
Bears Win
High
High &
Close
High
High &
Open
High
Close
Open
Openwww.dailyniftytips.in
&Close

Close
Open
Low
Low
Low &
Open
Low &
Close
Low
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Reversal Bars
Narrow Range Bars (NRBs)
Wide Range Bars (WRBs)
Topping Tails (TTs)
Bottoming Tails (BTs)
Multiple Candlestick Patterns
Candlestick interpretations
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Narrow Range Bar
Wide Range Bar
Topping Tail
Bottoming Tail
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Forces you to be present, in the moment. Candlesticks help to keep you in
the here and now mentality.

Once you place capital in the market, emotions get involved resulting in a
state of denial of the actual signals that are occurring. If you choose to
ignore the signals, you choose to ignore valid information, not subjective
indicators.
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If you still choose to ignore the information,
perhaps the problem is YOU, not your analysis!
Fundamentally, an indicator will only move after price has moved.
So Price first makes its move. Then the indicator will react and calculate its value according
to price
actions
only
sure
shotmove.
tips..!
Price moves again, then the indicator takes what price did and calculates a new move. Do
you see something wrong with this analogy?
The indicator is always following price. It never leads price, and its always behind price. It
only moves after price has moved. In essence indicators are always late.
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How can a trader actually be successful using lagging indicators to trade? The answer is
they cant. They are always late to enter, late to exit and get whipsawed around.
One thing is true, indicators never lead price. Price leads and the indicators follow. Here is
a novel idea- why not trade using the price?
Lets see what price does and trade off the PRICE ACTION itself.
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Occurs when the Real Body for a price bar is larger than the Real Body for the
previous bar
Indicates a potential reversal of the previous trend
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Bullish
Bearish
Engulfing
Engulfing
Occurs when the Real Body for a price bar retraces more than 50% but less than
100% into the Real Body for the previous bar
Indicates a potential reversal of the previous trend
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Bullish
50%
50%
Bearish
Piercing
Piercing
Occurs when the next bar opening for price action completely gaps over/under
the Real Body for the previous bar
Indicates a very high likelihood of potential reversal of the previous trend
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Bear Trap
Bull Trap
Bullish
Reversal
Topping Tail
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Bearish
Bottoming Tail
Reversal
Down-Up-Down
Up-Down-Up
lower third of bearish bar
upper third of bullish bar
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Natural pullback
Down
Up
Up
Down
Natural pullback
Down
Up
Price Action can only be described as: The interpretation of the daily price movement as to
the continuation of the trend or lack thereof.
In other
words
watch
how the price moves and you can deduce where price will go. This is
only
sure
shot
tips..!
very simple to understand and implement in day-trading.
Price behaves in only a few certain ways.
It can go in an uptrend, downtrend or consolidate sideways.
If Price action behaves in a way that is an uptrend, then we can make decisions based on
that analysis.
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If price action is trading in a range then we can deduce certain factors from this behavior.
If we can learn to trade the price and its action without relying on indicators, then we as
traders are on the leading side of the trades, and not the lagging.
TARGET
Price
Action
STOP
RISK
REWARD
ENTRY
ENTRY
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REWARD
RISK
TARGET
STOP
LONG Entry
Up trend
Higher Highs & Higher Lows
Short Entry
Down trend
Lower Highs & Lower Lows
Price action can show us where price will be in the very near future by looking at a test or
re-test of the highs and lows.
Indicators
thetips..!
most part do not provide this info.
only
surefor
shot
What about demonstrating false breakouts?
What indicator can predict a trade based on a false breakout that has just occurred?
Indicators can get you into a position on the wrong side because it has no way of predicting
false breakouts.
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How do we know the parameters of any indicator or correct? How about the moving
average? Are the 20 period and 200 periods the correct parameters to use?
How do we know the parameters of any indicator or correct? How about the moving
average? Are the 20 period and 200 periods the correct parameters to use?
We dont,
wetips..!
will never be right because of the changing nature of the markets.
only
sureand
shot
But if we took a look at price action and recognized a pattern of 2 or 3 consecutive higher
highs and higher lows, wouldnt that demonstrate strength in the market regardless of
where that technical indicator was plotted?
Hence, regardless of market volatility, or economic conditions, price action will outperform
technical analysis indicators.
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Scaling
In
Scaling
Out
Scaling
In
Scaling
Out
All-InAtOnce
AllOut-AtOnce
All-InAtOnce
AllOut-AtOnce
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Multiple entries and One Exit
Multiple Entries and Multiple Exits
4
2
Minor
Phases
3
4
Minor
Phases
Down Trend
1
1
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3
Up Trend
Minor
Phases
2
4
2
1
Minor
Phases
Expansion of movements
Up Trend
Up Trend
breakdown
Down Trend
Down Trend
breakout
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Sideways Price Action
Breakout
Breakdown
Up Trend and Price Movements

Associated with Higher Lows and Higher Highs
Focus on relationship of price action and rate of increase in price (i.e., slope of trend line)
The more price action tests the trend line and continues higher, the more traders perceive
this trend line as support.
Down Trend and Price Movements
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Associated with Lower Highs and Lower Lows
Focus on relationship of price action and rate of decrease in price (i.e., slope of trend line)
The more price action tests the trend line and continues lower, the more traders are
recognizing the trend line and using it as resistance.
Sideways Price Movements

Focus on relationship of price action and rate of increase in price (i.e., slope of trend line)
Focus on relationship of price action and rate of decrease in price (i.e., slope of trend line)
The more price action tests the trend line and continues higher, the more traders perceive
this trend line as support.
Range bound
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Associated with relatively equal Lows and Highs
Consolidation
SIDEWAYS TRADING PATTERNS
On lower timeframes; can find relatively equal Lows and Highs
Congestion
RANGE
NO clear patterns of price action on lower time frames
CONSOLIDATION
CONGESTION
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2
2
Price
Action
2
2
2
Bullish moves on lower

time frames
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ENTRY
Major Up Trend
Higher Highs
Higher Lows
Higher highs and higher lows

provide evidence of bullish price
action/uptrend
Use technical analysis for
BUY signals
Trading with the trending price action.

1
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Use technical analysis for
for SHORT signals
3
1
Review the average daily trading range to determine if

price action is increasing/decreasing.
time trades better.
Conduct volume analysis to determine whether volume

is diverging with price action.
only
sure
shot tips..!
Lack
of volume
to support potential breakout
Review price action on multiple time frames to

determine the macro trend.
Trade on the side of the major trend to avoid low odds

trades.
Filter example: Break support/resistance by x %
Filter example: Break support/resistance by x
points
should reduce position size or wait for breakout

confirmation
Add filters plus additional weight-of-evidence to
Filter example: Multiple closes above/below

support/resistance area
Determine whether price action is extended: Oversold

or Overbought.
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Review support and resistance to find risk and reward

parameters for setups & entries at support or
resistance.
Look for congruency with E-mini futures for trading

opportunities and setups.
Countertrend breakouts perform extremely well.
Flags, pennants, broadening patterns
Trend line breakouts can be very good scalp trading

opportunities
Short signals
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Buy Signals
Buying
Signal
Short
Signal
Very common chart pattern found in existing trending price
Represent a pause or consolidation of price action to

determine whether to continue or reverse movement
Parallel
2
1
Can also include the category of chart patterns pennants
action
A
Always proceed a dramatic or sharp price action move
Among the most reliable of continuation patterns
Rarely produce a trend reversal
Easily identifiable by parallel lower and upper boundary of
support and resistance; respectively
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Relatively short term countertrend movement in price

action
Flags
Technical analysis measurements can be applied to project

future price action continuations
More rapid development in downtrends
SHORT
200 MA
Parallel
20 MA
1
3
B
Flags
Higher
Timeframe
Downtrend
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Fibonacci Retracement used to measure the magnitude and strength / weakness

of counter moves to the original trend.
Use retracement levels starting with beginning of move to end of move.
Pivots are helpful in determining each point of reference to construct Fibonacci grid.
Combine Price movements with Fibonacci Retracements
Look for support and resistance areas, at retracement levels, to assess the
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Retracements provide valuable information for how significant the potential
ability of moves continuing.
reversal pattern is.
Bigger retracements lend to weakening price action,
Smaller retracements lend to strong price action moves.

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Advanced Scalp

manipulate most traders mindset.

BOLD STATEMENT: A method that works far better - Price Action!

only sure shot tips..!

Narrow Range Bars (NRBs)

only sure shot tips..!

Topping Tails (TTs)

Bottoming Tails (BTs)

Multiple Candlestick Patterns

Narrow Range Bar

Forces you to be present, in the moment. Candlesticks help to keep you in

the here and now mentality.

Fundamentally, an indicator will only move after price has moved.

Indicates a potential reversal of the previous trend

Indicates a potential reversal of the previous trend

Indicates a very high likelihood of potential reversal of the previous trend

lower third of bearish bar

upper third of bullish bar

Price behaves in only a few certain ways.

It can go in an uptrend, downtrend or consolidate sideways.

What about demonstrating false breakouts?

Multiple entries and One Exit

Multiple Entries and Multiple Exits

Up Trend and Price Movements

Down Trend and Price Movements

Associated with Lower Highs and Lower Lows

Sideways Price Movements

Associated with relatively equal Lows and Highs

SIDEWAYS TRADING PATTERNS

On lower timeframes; can find relatively equal Lows and Highs

NO clear patterns of price action on lower time frames

Bullish moves on lower

Higher highs and higher lows

Trading with the trending price action.

Review the average daily trading range to determine if

time trades better.

Conduct volume analysis to determine whether volume

Review price action on multiple time frames to

Trade on the side of the major trend to avoid low odds

Filter example: Break support/resistance by x %

Filter example: Break support/resistance by x

should reduce position size or wait for breakout

Add filters plus additional weight-of-evidence to

Filter example: Multiple closes above/below

Determine whether price action is extended: Oversold

Review support and resistance to find risk and reward

Look for congruency with E-mini futures for trading

Countertrend breakouts perform extremely well.

Flags, pennants, broadening patterns

Trend line breakouts can be very good scalp trading

Very common chart pattern found in existing trending price

Represent a pause or consolidation of price action to

Can also include the category of chart patterns pennants

Always proceed a dramatic or sharp price action move

Among the most reliable of continuation patterns

Rarely produce a trend reversal

Easily identifiable by parallel lower and upper boundary of

support and resistance; respectively

Relatively short term countertrend movement in price

Technical analysis measurements can be applied to project

More rapid development in downtrends

Fibonacci Retracement used to measure the magnitude and strength / weakness

Use retracement levels starting with beginning of move to end of move.