Price Action Scalping

This is a discussion on Price Action Scalping within the Discretionary Trading forums, part of the Methods category; Third trade and last one of the day. Prices are in range for about 45 minutes (yellow lines). In that ...

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Old Mar 13, 2012, 10:18am   #31
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread Third trade and last one of the day.

Prices are in range for about 45 minutes (yellow lines). In that range can you see that the bulls are stronger than the bears? How do we know that? By the higher lows (at least 4).

Prices pokes twice above the top range line, so I draw another top range bar (white).

The ema is squeezing and slowly pushing the price out of the tops range bars and out of a round number (cyan line)

I this stage I am getting ready, as soon as prices print 1 pips above the top range bar, I am in at market.

7 pips. 2%
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Old Mar 13, 2012, 6:04pm   #32
Joined Mar 2012
Re: Price Action Scalping

Quote:
Originally Posted by Mike Kshemaraja View Post
Addy

How much do you know about technical analysis?

I do not use indicators only the 20 ema, already said in one of my previous post. Can you see any on my chart?

This is not going to be easy. But doable if you work hard.

Below find one of my post to someone asking about scalping:

Yes, spend 8 hours a day ( your eyes will get sore) screen time on one instrument only and only one time frame (not bigger than 5m, 30 seconds is my favourite), do not trade, just watch the dance for about a month.



Make sure you have knowledge of basic TA (John Murphy will do).

Regarding Psychology Mark Douglass will help.

Then to go a step further I suggest Al brooks and Bob Volman.

Do not expect somebody to hand it to you, you need to do the dirty work.

Trading is an art form, is like making love, I can tell you what to do but if you do not immerse yourself in it, express yourself, bringing in it part of you, your passion, you will not have fun. No fun, no profits.
Hi Mike;

Thanks for your reply. I was at work when i wrote my message, so I didnt look at the chart, I apologize.

I am an Electronic Engineer from a Top UK university, so I am not stupid if that was your question. If you are trying to insult my intelligence, thats something different.

I am a Long term investor, but Now want to get to day trading, and willing to learn alot as you said. I dont pretend to be an Expert.

I have traded FX and commodities 4 years ago as well for a short period of time.So my TA needs working on.

Thank you very Much for your Suggestions, I am reading and analyzing as we speak. Trust me I know what hard work is. My work took me from Panama, to the Maldives before reaching the age of 27!! so Please keep your feet on the ground, we are here to help each other. Unless one of us is George Soros.

Thanks for your understanding,
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Old Mar 13, 2012, 9:26pm   #33
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread
Quote:
Originally Posted by addy123 View Post
Hi Mike;

Thanks for your reply. I was at work when i wrote my message, so I didnt look at the chart, I apologize.

I am an Electronic Engineer from a Top UK university, so I am not stupid if that was your question. If you are trying to insult my intelligence, thats something different.

I am a Long term investor, but Now want to get to day trading, and willing to learn alot as you said. I dont pretend to be an Expert.

I have traded FX and commodities 4 years ago as well for a short period of time.So my TA needs working on.

Thank you very Much for your Suggestions, I am reading and analyzing as we speak. Trust me I know what hard work is. My work took me from Panama, to the Maldives before reaching the age of 27!! so Please keep your feet on the ground, we are here to help each other. Unless one of us is George Soros.

Thanks for your understanding,
Addy

Please re-read my introduction post. (1)

This is a visual thread, please post you chart with comment and motifs if you like.

I am no interested in anything else, this thread is not about me or you.

But this time only, just to make it clear:
I did not want insult your intelligence, but you asked me which indicator I use, after I posted numerous charts. Also you ask me which TF I use, where is very clearly stated in my second post.

So please read carefully all my post and if you need some help I will try to help if I can as I did before.

I have mentioned the hard work because in my view is the only way out and has nothing to do with you.

Soros? Who is he?
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Old Mar 13, 2012, 11:49pm   #34
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread Hi all

Is 10.30 am Tokio time. Time to get down to the nitty gritty.

What I am look for? I am looking for pulls back and breaks set ups.

Keep in mind that set ups do not give us the underlying strength of the market, they are only the last step to enter the market.

They are only taken if they are to the way of least resistance.

How to we determine the strength of the underlying market? By looking at the overall picture. High lows, lower lows, double bottoms, triple tops, the ema, the round numbers and all the basic TA.

Does this work all the time? No way, We will play our odds and how we will deal with our losses will make the difference.

But the chart will tell us, if we look at it in an objective way, and that is the hard bit in my view, because we tend to see what we want to see and not what is there.

Why? because we are humans. Can we do something about it? yes. In one of my today's following I will post an extract from a book.
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Old Mar 14, 2012, 6:12am   #35
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread Being stopped twice, this is my third trade.

The overall market is up, a range barrier is formed, market makes lower lows, she breaks in a strong fashion, I am not moving, only watching, she pull back to the bottom range, I am short 1 pip below the bounce candle at market.

Before my target was reached my Sl was moved 1 pips above the latest swing high.
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Old Mar 14, 2012, 9:14am   #36
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread Firth trade of the day.

Long range, spotted a build up, got in ( a bit late, 3rd time today), she pulled back to the 3050, then went..

Today, 3 losses two wins. I think that's it today for me.
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Old Mar 14, 2012, 9:58am   #37
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread Ok saw an opportunity and took my 6th trade of the day.

Did not take the PB at D for long, because I wanted a touch or maybe a poke of the ema, did not take the PB at C because the double top formation of A and B.

Then she formed lower highs (1, 2, 3), by 2 I already drawn my box, not sure yet in which direction was going, I was just observing.

She had a fail break which I did not take because I wanted to see more build up pressure with the ema pushing, squeezing the price out of the box, which she did exactly that after 3 in which the bulls of the fail break also got trapped .

End of the day 6 trade, all even, did not make money, not losses either, but gained in experience and I think that is important.
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Old Mar 15, 2012, 12:23am   #38
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread Ok, lets see if we can make some money today, better not to have too much expectation though.
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Old Mar 15, 2012, 1:04am   #39
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread A real battle going on here.

Which side I am going to take? none, until I see some pain and they need to react to their mistakes to protect themselves.
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Old Mar 15, 2012, 7:02am   #40
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread (Also posted on another thread)

A smart scalper does not have to be in the market all the time, but only when he feels the pain (of others that needs to cover for their mistakes).

He might wait hours for an entry and then make consecutive entries in a matter of short time, he is not anxious to get in a position, he know that to stay aside is his best position, he is always active even without a position, he does not hold concepts and does not look at scalping as a way to get a thrill, he does not want to be right, he deal with is losses the same way he deal with his profits, he also works towards for an objective and relax state of mind, he know that his ego is around the corner trying to trick him, he is aware. A smart scalper is first of all a business man.
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Old Mar 15, 2012, 7:43am   #41
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread This is my second trade of the day.

The first one just missed my target by two pips, I had to scratch it for a BE trade. (I hate that)

This one looked like was going to do the same, but just pulled back at the broken top range bar.

7 pips. 2%. Does seem much but if you compound 2% a day with 50000 capital, working 200 days, you end up with over 442000 at the end of the year.

Now guys this thread has many visitors but nobody is showing his chart but me, do not be afraid, be part of it, that is the only way forward.

When you are not afraid of losing any more, that is when you will began to win.
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Old Mar 15, 2012, 9:37am   #42
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread This is extract from Bob Volman Book:

"An aspiring scalper should realize, though, that he is just as human and susceptive to the vagaries of the mind as all those who failed before him. To think oneself above that can be a costly mistake that sooner or later may come to collect its debt. Arguably, the only way for a scalper to stand a fighting chance is to acknowledge his personal follies and not deny them".

Then he goes on and finishes like this:

"An excellent trick to counter intuitive folly is to force yourself beforehand, mentally or even verbally, to rationally defend your reasons for taking a trade, as opposed to just pulling the trigger because thinks look good. Rationalising your next step will instantly demobilize a big chunk of potential irrationality. This is crucial concept to grasp."
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Old Mar 15, 2012, 9:17pm   #43
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread A new day.

Remember that setups do not give us the strength of the underling market, but only a mean to get in to the market:

"Yes, I think there is a big misconception about trading and setups in general. Traders rely very much on set ups to initiate a position. But in my humble view, set ups will not give a true reality of the market condition but the overall chart will. The pressure is either up, down or neutral. If it is pushing prices more one way than the other, without much resistance in sight, a trader simply sit tight until he spots a tradable setup that offers him a good entry to participate. The actual shape of the set up is quite irrelevant."
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Old Mar 15, 2012, 9:21pm   #44
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread Extract from Al Brooks:

"You will not make money long term until you know enough about your personality to find a trading style that is compatible. You need to follow your rules comfortably, allowing you to enter and exit trades with minimal or not uncertainty or anxiety. Once you have mastered a method of trading, if you feel stress while trading, then either you haven't yet found your style or yourself".

Last edited by Mike Kshemaraja; Mar 15, 2012 at 9:44pm.
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Old Mar 16, 2012, 7:09am   #45
Joined Mar 2012
Re: Price Action Scalping

Mike Kshemaraja started this thread 5th trade of the day.

Nice trend down, nice pull back to the ema, just 1/3 retracement, as soon as the last bull bar gets broken I am in, SL is placed 1 pip above the last swing high

-1.5, -2.1, -1.7, +2.7, +7 = +4.4

So this means even if you lose more trades you still can make money.
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Last edited by Mike Kshemaraja; Mar 16, 2012 at 11:32am.
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