Scalping

[yubesh]

I am curious to know if anyone just uses a price ladder or DOM to scalp? Basically looking at just price action and volume. No charts or whatsoever. I always believe that charts are better referred to as a history of that immediate moment and therefore it is better for swing trading, overnight positions or long term. But as a day trader, I am not saying the charts are entirely useless, I just really really think that price action is far more superior if you wanna scalp 2-3ticks per trade. Of course, consistency is key here.

Any such traders like this here on t2w?

I would like to share some of my strategies and how I scalp. Exchanging pointers would be the goal of this thread.

Regards,
A

 

[DionysusToast]

Re: Scaliping

I'm with you.

 

[yubesh]

Re: Scaliping

Another question is, does anyone not have any indicators except moving averages? In my opinion, it is very straightforward. But the ultimatum is setting the favorable take profit/stop loss on that given day.

ADR is the only way i can think of and as Bob Volman said it, enter a trade if only reward to risk 1.5:1.
So that'd be like 15% of ADR for T/P and 10% of ADR for S\L .

Do I make sense here? Lol

 

[ULJUH]

Re: Scaliping

Hi Yubesh,
I use price action and chart together to scalp. Chart helps me in identifying the pattern. By looking at charts it might be possible to figure out if the market is trending or if it is caught in a range. Price action helps in execution. It helps me, in identifying the best entry points. I would love to hear about ur strategies and style. It may help to tweak mine.

 

[yubesh]

Re: Scaliping

Hi Yubesh,
I use price action and chart together to scalp. Chart helps me in identifying the pattern. By looking at charts it might be possible to figure out if the market is trending or if it is caught in a range. Price action helps in execution. It helps me, in identifying the best entry points. I would love to hear about ur strategies and style. It may help to tweak mine.

Hi,

What are you scalps per trade like? TP/SL? Btw, What timeframe for your charts? I use range bars. 10 and 5 ticks breakout. 10 for bigger scalps, 5 for quick ones.

But scalping reward to risk ratio as everyone knows is not so ideal. Charting to spot trends, you are right. I call it the, 'move with the crowd' trades. Just follow direction! A few 2-3 ticker trades are surely there. But I am learning how to capitalize on that 'directional movement', and getting more out of it, since the potential after certain trigger of the indicators I've set up is at least 90%!

I am still back testing minimum 10,12-15 ticks winner with S\L 7,9,12. Btw, I trade the G6E and ES. Of late, the 6e more.

I still believe that, if we can get 10-15ticks per trade daily on a consistent basis, what's 2 or 3 ticks? :whistling

 

[ULJUH]

Hi,

What are you scalps per trade like? TP/SL? Btw, What timeframe for your charts? I use range bars. 10 and 5 ticks breakout. 10 for bigger scalps, 5 for quick ones.

But scalping reward to risk ratio as everyone knows is not so ideal. Charting to spot trends, you are right. I call it the, 'move with the crowd' trades. Just follow direction! A few 2-3 ticker trades are surely there. But I am learning how to capitalize on that 'directional movement', and getting more out of it, since the potential after certain trigger of the indicators I've set up is at least 90%!

I am still back testing minimum 10,12-15 ticks winner with S\L 7,9,12. Btw, I trade the G6E and ES. Of late, the 6e more.

I still believe that, if we can get 10-15ticks per trade daily on a consistent basis, what's 2 or 3 ticks? :whistling

Hi,
I trade brent calendar spreads. I usually scalp for 1-2 ticks in it and aim for 4-5 ticks in a directional movement. The brent spread market usually moves 10-15 ticks for the whole day. I keep 1-2 tick SL. I use candle stick chart of 15 min, 60 and 240 min. Apart from that I use moving averages and MACD.

 

[yubesh]

Hi,
I trade brent calendar spreads. I usually scalp for 1-2 ticks in it and aim for 4-5 ticks in a directional movement. The brent spread market usually moves 10-15 ticks for the whole day. I keep 1-2 tick SL. I use candle stick chart of 15 min, 60 and 240 min. Apart from that I use moving averages and MACD.

Initially, I was scalping off from a sideway market. I looked to short or long from market pullbacks from the active low and high of the day. The picture ive attached shows a full 2 points I got from the trade twice. 16 ticks in 2 trades. The best entry would be at the open of the active high bar. But then again, this was in the midst of my backtesting result. I was more interested in the current bar heading towards the moving average and rsi crossover.

Now I am experimenting with stoch and tighter moving averages and trend following.

EDIT** oh, and bollinger band has to be flat. This is only good in a sideways market. which means, increased waiting time.

 

[ULJUH]

Initially, I was scalping off from a sideway market. I looked to short or long from market pullbacks from the active low and high of the day. The picture ive attached shows a full 2 points I got from the trade twice. 16 ticks in 2 trades. The best entry would be at the open of the active high bar. But then again, this was in the midst of my backtesting result. I was more interested in the current bar heading towards the moving average and rsi crossover.

Now I am experimenting with stoch and tighter moving averages and trend following.

EDIT** oh, and bollinger band has to be flat. This is only good in a sideways market. which means, increased waiting time.

Nice man, I think you are working in the rite direction. I am more of a price action trader though. I have moving avgs,macd and bollinger bands on my chart but I dont base my trades on that. I use them to not get caught in the wrong side. Also there are some candlestick patterns inherent to my market which shows the long squeeze providing good risk reward trades. I will quote those charts in my next post

 

[yubesh]

Nice man, I think you are working in the rite direction. I am more of a price action trader though. I have moving avgs,macd and bollinger bands on my chart but I dont base my trades on that. I use them to not get caught in the wrong side. Also there are some candlestick patterns inherent to my market which shows the long squeeze providing good risk reward trades. I will quote those charts in my next post

Any source you've got to share with regards to analyzing price action? I have a little knowledge, but I doubt it'd serve me well during volatile periods. Do you act base on holding price and breakouts/drawbacks?

 

[wino59]

Any source you've got to share with regards to analyzing price action? I have a little knowledge, but I doubt it'd serve me well during volatile periods. Do you act base on holding price and breakouts/drawbacks?

First off - Forget the charts.... doesn't matter... You should only focus on the ladder, and then you will be able to determine a resistance point before it becomes a resistance point because of the price action.

If I am playing a breakout, I don't wait for it break out then play it, like many other traders... I want to be in that trade before the breakout... If it goes against you or is a false breakout you can scratch the trade or reverse your position so you don't lose money. (rule number 1, keep your money)

Scalping is fast real time and everything happens in seconds...if I see a price sticking I look for REAL volume of contracts sticking, then I place the trade and get 4 ticks, but it happens so fast, before other people see whats going on you already made 4 ticks, and then a move can start. Sometimes I play the same price over and over... Sometimes big money absorbs all the selling or buying at a particular price.... you just got to get a feel for it, and also know when it could run you over... this is hard to teach, so you really need to put the time in, to understand what I am saying.

 

[yubesh]

First off - Forget the charts.... doesn't matter... You should only focus on the ladder, and then you will be able to determine a resistance point before it becomes a resistance point because of the price action.

If I am playing a breakout, I don't wait for it break out then play it, like many other traders... I want to be in that trade before the breakout... If it goes against you or is a false breakout you can scratch the trade or reverse your position so you don't lose money. (rule number 1, keep your money)

Scalping is fast real time and everything happens in seconds...if I see a price sticking I look for REAL volume of contracts sticking, then I place the trade and get 4 ticks, but it happens so fast, before other people see whats going on you already made 4 ticks, and then a move can start. Sometimes I play the same price over and over... Sometimes big money absorbs all the selling or buying at a particular price.... you just got to get a feel for it, and also know when it could run you over... this is hard to teach, so you really need to put the time in, to understand what I am saying.

Appreciate your time taken to reply.

I clearly understand what you are trying to say. I have traded without looking at charts and I usually go for a quick 2 tick bounce of whole numbers (arbitrary numbers) and I place a limit order so that when it hits it is easier to break even than to climb from a loss. So far the whole numbers seems fine. About 70-80% win rate. But thats only 2 ticks. I would try 3, but the ratio would drop slightly too. I want to try to learn to scalp more per trade, but I am just unsure of under which circumstances that I can see 3-4 or 5 ticks to my favor. Do you have a certain time you trade? If you don't mind can you share with me the times in GMT?

I currently trade 7am - 9 am GMT (Euro open) and 9 pm - 12 am GMT (NY open).

I just happen to see a lot of volume at these hour..

Regards,
A

 

[wino59]

Appreciate your time taken to reply.

I clearly understand what you are trying to say. I have traded without looking at charts and I usually go for a quick 2 tick bounce of whole numbers (arbitrary numbers) and I place a limit order so that when it hits it is easier to break even than to climb from a loss. So far the whole numbers seems fine. About 70-80% win rate. But thats only 2 ticks. I would try 3, but the ratio would drop slightly too. I want to try to learn to scalp more per trade, but I am just unsure of under which circumstances that I can see 3-4 or 5 ticks to my favor. Do you have a certain time you trade? If you don't mind can you share with me the times in GMT?

I currently trade 7am - 9 am GMT (Euro open) and 9 pm - 12 am GMT (NY open).

I just happen to see a lot of volume at these hour..

Regards,
A

I trade the NY open, this is where the most action is, and currently trading the e-mini /esm3 to be specific... trying not to scalp to much there, as I see more profit potential in playing the range.

I do see some scalping setups from time to time that will usually yield a good 4 to 5 ticks, but you have to be quick , and know what to look for as it will fall off in a hurry, or rebound just as fast, just depends on who is playing and who has the bigger wallet.

 

[yubesh]

I trade the NY open, this is where the most action is, and currently trading the e-mini /esm3 to be specific... trying not to scalp to much there, as I see more profit potential in playing the range.

I do see some scalping setups from time to time that will usually yield a good 4 to 5 ticks, but you have to be quick , and know what to look for as it will fall off in a hurry, or rebound just as fast, just depends on who is playing and who has the bigger wallet.

Agreed.

Nobsdaytrading? Fantastic material.

 

[numbertea]

I'm on the same page here, also scalping /ES. I look at the prices for range determination and volume for break out potential. I also use L2 for book data to see buy and sell pressure before I could see it on a chart. I actually use a display bar graph for book price and volume, ask vs bid difference to current price. I average the top 10 book. I've found I can just look at that and scalp pretty effectively, usually for 2 to 4 ticks. I automate my entry to put in my target immediately after so I get in that price que as quickly as possible. I also have a 1 minute chart up so I can anticipate standard price moves and sometimes remove my target order for a longer trade.

I've spent so many hours to get to this point, I'll be trading for years to recoup a standard equivalent wage. Lol

 

[JohnnyC2013]

So much more difficult to scalp like that now compared to a few years ago.

 

[numbertea]

But the volume is ever increasing, I seem to be doing ok. Let the battle continue! Anything anyone is doing that could help me? I appreciate all the help I can get.

Thanks all

 

[leo_wilkstein]

First off - Forget the charts.... doesn't matter... You should only focus on the ladder, and then you will be able to determine a resistance point before it becomes a resistance point because of the price action.

If I am playing a breakout, I don't wait for it break out then play it, like many other traders... I want to be in that trade before the breakout... If it goes against you or is a false breakout you can scratch the trade or reverse your position so you don't lose money. (rule number 1, keep your money)

Scalping is fast real time and everything happens in seconds...if I see a price sticking I look for REAL volume of contracts sticking, then I place the trade and get 4 ticks, but it happens so fast, before other people see whats going on you already made 4 ticks, and then a move can start. Sometimes I play the same price over and over... Sometimes big money absorbs all the selling or buying at a particular price.... you just got to get a feel for it, and also know when it could run you over... this is hard to teach, so you really need to put the time in, to understand what I am saying.

I could not agree with you more.

 

[numbertea]

It is normally my style as well but I always have a chart up for the big ones to get caught. Did you notice the oversold condition of 9,13 MACD on ESM3 twice yesterday? Solid trades. 1 minute bars of course.