Morning everybody I setup my chart with the said preference with my 9 LRs.
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Hi Sun
Now you are getting familiar with a chart with 9 LRs - what I am going to explain next to you will be confusing again for a start - but hopefully will make sense as you carry on progressing
For my method to work on-going - you need to be able to scalp so to understand how to time your trade entries and ideally get the best intraday prices possible to buy and sell. That part is coming along nicely.
Ideally though - you only sell at an intraday price high ( within 5 -7 pips of it ) and only buy at an intraday low ( again within 5 -7 pips off it)
When price is in between these levels - then sometimes you will not want to keep scalping either way for just 3 to 7 pip net - its OK if the range is over 50 - 80 pips but in ranges of just 10 -30 pips - then these are the areas that can cost you pips - as the movements can many times be just false set ups.
If you look at any 1 min chart on any pair over this last month on any day period - its very rare to just have one high price and one low price. Normally you might have three of even five plus LH's or HH's and similar numbers of LL's and HL's over a 12 hr session
As a scalper - you should trade with no bias in your head - ie even in strong down intraday trends - you can still have many 10 to 30 pip bounces back up during a 100 to 200 pip drop - but now the idea of the multi LR's is for you to be able to visualise the pairs movements over 1 or 6 hrs and therefore anticipate larger scalp moves in one of the two possible directions - based on a Scalp LiTs area that might be as tight as just 3 to 5 pips
A great example would be the EU on Friday 20th. 0700 was a minor support area - but key area was 0710 to 0715, Below those prices always favoured lower so in the back of your trading mindset you knew any scalp buys from 0660 or 85 or 0700 etc - needed to make over 0715+ really to have a chance of trying higher etc.
So over the course of the day from the Opens - if you took say 8 separate scalps on the EU over say 4 or 6 hrs plus - i would expect that you would have 5 or 6 as sells and only 2 or less as buys.
That's not to say you could have taken 8 scalps buys and still made a small profit on each one - but the fact is - there were more price fall movements then price rises
The EJ - EA and even the GA were easier pairs to trade on Friday - ie just by getting a sell on at a high price early on in the morning and leave on all day with a stop in profit that could be moved down as they started falling over 50 and 100 + pips.
If trading was this easy everyday - then instead of 80% + failing to get there - it would be 80% who would be successful - but as we know for every easy day per month - there will be three or more days that will be really hard work and test your skill and ability to frustration point
Even when you have all 9 LRs over price saying sell - or all under price saying buy - a strong S or R area can stop a move and reverse it.
But to assist you with that - we have our time rules as well as other clues you can find from trendlines etc to assist in TW's and around KT's
Now that you have the full LR set up - you should not need to take 30 -40 + individual scalp trades ( thats counting one entry per scalp - not on multi entries and part stakes - dont try overdoing that as it could be were you lose a few pips on small saclps ) - you should be able to easily make your target within 10 to 20 scalps - all depending on how many losses you have in your first 10 trades,
Even then - you could have your first 3 scalps - all losers with a net 14 pip loss and then your next 2 scalps are beauties making 18 pips on the first and 24 pips on the second - so with just 5 scalps you make your target.
Other days you only have 2 losses in first 10 trades - but your highest net win is 4 pips and average is 3 meaning with 2 losses you are still not at 25+ pips after 10 trades.
By cherry picking your pairs according to morning news and set ups - 15 scalps should easily make you over 40 pips - even with just a 60% win ratio and 6 losses - ie- on the 9 winners you should get a couple making over 15 pips - the others averaging say 6 pips - so wins - 72 pips and 6 losses of 30 pips = 42 pip net.
We will be weaning you away from chasing 3 to 5 pip scalps - nothing wrong with them - and yes you still take a 4 pip win rather than a 4 pip loss - but its the cherry picking part of catching the nice moves we need you on - rather than just coming out of a 5 pip win off a scalp sell - to see it move up 19 pips in next 9 mins and you are not in it.
That's the next part of this stage of the plan - stay focused and disciplined keep studying the price action and price structures every day and you will keep progressing - even on your live account.
Have a good week and i do hope to be around a few more hrs in the morning for part of the week -
Al the best
F
