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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.
www.intradaymoney.in
Understanding Candles www.dailyniftytips.in only sure shot tips..!
IntradayMoney.in Bulls Win
Bears Win
High
High & Close
High
High & Open
www.intradaymoney.in High
Close
Open
Openwww.dailyniftytips.in &Close
only sure shot tips..! Close
Open
Low
Low
Low & Open
Low & Close
Low
IntradayMoney.in
Reversal Bars
www.intradaymoney.in
Narrow Range Bars (NRB’s)
www.dailyniftytips.in Wide Range Bars (WRB’s)
only sure shot tips..!
Topping Tails (TT’s)
Bottoming Tails (BT’s)
Multiple Candlestick Patterns
Candlestick interpretations
IntradayMoney.in
Narrow Range Bar
www.intradaymoney.in Wide Range Bar
www.dailyniftytips.in only sure shot tips..!
Topping Tail
Bottoming Tail
IntradayMoney.in
www.intradaymoney.in
Forces you to be “present”, in the “moment”. Candlesticks help to keep you in
the “here and now” mentality. www.dailyniftytips.in only sure shot tips..!
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.
IntradayMoney.in If you still choose to ignore the information, perhaps the problem is YOU, not your analysis!
www.intradaymoney.in
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 www.dailyniftytips.in 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 it’s always behind price. It
only moves after price has moved. In essence indicators are always late.
IntradayMoney.in
How can a trader actually be successful using lagging indicators to trade? The answer is
they can’t. 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?
Let’s see what price does and trade off the PRICE ACTION itself.
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
IntradayMoney.in
www.intradaymoney.in
Occurs when the Real Body for a price bar is larger than the Real Body for the previous bar www.dailyniftytips.in only sure shot tips..!
Indicates a potential reversal of the previous trend
IntradayMoney.in Bullish Bearish
Engulfing
Engulfing
www.intradaymoney.in
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 www.dailyniftytips.in only sure shot tips..!
Indicates a potential reversal of the previous trend
IntradayMoney.in Bullish 50%
50%
Bearish
Piercing
Piercing
www.intradaymoney.in
Occurs when the next bar opening for price action completely gaps over/under the Real Body for the previous bar www.dailyniftytips.in only sure shot tips..!
Indicates a very high likelihood of potential reversal of the previous trend
IntradayMoney.in Bear Trap
Bull Trap
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Bullish Reversal
Topping Tail
IntradayMoney.in Bearish
Bottoming Tail
Reversal
www.intradaymoney.in
Down-Up-Down
Up-Down-Up www.dailyniftytips.in only sure shot tips..!
lower third of bearish bar
upper third of bullish bar
IntradayMoney.in Natural pullback
Down
Up Up
Down Natural pullback
Down
Up
www.intradaymoney.in
Price Action can only be described as: The interpretation of the daily price movement as to the continuation of the trend or lack thereof. www.dailyniftytips.in 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.
IntradayMoney.in
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.
www.intradaymoney.in TARGET
Price Action
STOP
www.dailyniftytips.in only sure shot tips..!
RISK REWARD
ENTRY
ENTRY
IntradayMoney.in
REWARD
RISK
TARGET STOP
LONG Entry •Up trend •Higher Highs & Higher Lows
Short Entry •Down trend •Lower Highs & Lower Lows
www.intradaymoney.in
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. www.dailyniftytips.in 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.
IntradayMoney.in
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?
www.intradaymoney.in
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? www.dailyniftytips.in We don’t, 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, wouldn’t 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.
IntradayMoney.in
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Scaling In
Scaling Out
Scaling In
Scaling Out
All-InAtOnce
AllOut-AtOnce
All-InAtOnce
AllOut-AtOnce
IntradayMoney.in
Multiple entries and One Exit
Multiple Entries and Multiple Exits
www.intradaymoney.in
3
4 www.dailyniftytips.in 2 only sure shot tips..! Minor Phases
3 4
Minor Phases
2
Down Trend
4
1 1
IntradayMoney.in 3
4
3
Up Trend
Minor Phases
2
2 4
2 1
1
Minor Phases
Expansion of movements www.intradaymoney.in Up Trend
Up Trend breakdown
www.dailyniftytips.in only sure shot tips..!
Down Trend Down Trend breakout
IntradayMoney.in Sideways Price Action
Breakout
Breakdown
www.intradaymoney.in
Up Trend and Price Movements Associated with “Higher Lows” and “Higher Highs” www.dailyniftytips.in only sure shot tips..! 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
IntradayMoney.in
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.
www.intradaymoney.in
Sideways Price Movements Focus on relationship of price action and “rate of increase” in price (i.e., slope of trend line) www.dailyniftytips.in only sure shot tips..! 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
IntradayMoney.in
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
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
1
2
1
3
4
IntradayMoney.in 2
3
4
www.intradaymoney.in
2 Price Action
www.dailyniftytips.in only sure shot tips..! 2
2
3
2
1
2 2
2
Bullish moves on lower time frames
IntradayMoney.in
ENTRY
Major Up Trend •Higher Highs •Higher Lows
Higher highs and higher lows provide evidence of bullish price action/uptrend
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..! Use technical analysis for BUY signals
Trading with the trending price action. 1
2
3
IntradayMoney.in Use technical analysis for for SHORT signals
2
3 1
www.intradaymoney.in
Review the average daily trading range to determine if price action is increasing/decreasing.
time trades better.
Conduct volume analysis to determine whether volume www.dailyniftytips.in 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.
IntradayMoney.in
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
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Short signals
1
2
3
IntradayMoney.in
Buy Signals
Buying Signal
2
3
1
Short Signal
Very common chart pattern found in existing trending price
C
Represent a “pause” or consolidation of price action to determine whether to continue or reverse movement
Parallel 2 1
3
B
Can also include the category of chart patterns – pennants
action
A www.dailyniftytips.in only sure shot tips..!
www.intradaymoney.in
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
IntradayMoney.in
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
www.intradaymoney.in SHORT
www.dailyniftytips.in only sure shot tips..!
A
200 MA
Parallel
2
C
20 MA
1 3
B Flags
Higher Timeframe Downtrend
IntradayMoney.in
www.intradaymoney.in
Fibonacci Retracement used to measure the magnitude and strength / weakness of counter moves to the original trend. www.dailyniftytips.in only sure shot tips..!
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
IntradayMoney.in 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.
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.
www.intradaymoney.in
Understanding Candles www.dailyniftytips.in only sure shot tips..!
IntradayMoney.in Bulls Win
Bears Win
High
High & Close
High
High & Open
www.intradaymoney.in High
Close
Open
Openwww.dailyniftytips.in &Close
only sure shot tips..! Close
Open
Low
Low
Low & Open
Low & Close
Low
IntradayMoney.in
Reversal Bars
www.intradaymoney.in
Narrow Range Bars (NRB’s)
www.dailyniftytips.in Wide Range Bars (WRB’s)
only sure shot tips..!
Topping Tails (TT’s)
Bottoming Tails (BT’s)
Multiple Candlestick Patterns
Candlestick interpretations
IntradayMoney.in
Narrow Range Bar
www.intradaymoney.in Wide Range Bar
www.dailyniftytips.in only sure shot tips..!
Topping Tail
Bottoming Tail
IntradayMoney.in
www.intradaymoney.in
Forces you to be “present”, in the “moment”. Candlesticks help to keep you in
the “here and now” mentality. www.dailyniftytips.in only sure shot tips..!
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.
IntradayMoney.in If you still choose to ignore the information, perhaps the problem is YOU, not your analysis!
www.intradaymoney.in
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 www.dailyniftytips.in 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 it’s always behind price. It
only moves after price has moved. In essence indicators are always late.
IntradayMoney.in
How can a trader actually be successful using lagging indicators to trade? The answer is
they can’t. 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?
Let’s see what price does and trade off the PRICE ACTION itself.
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
IntradayMoney.in
www.intradaymoney.in
Occurs when the Real Body for a price bar is larger than the Real Body for the previous bar www.dailyniftytips.in only sure shot tips..!
Indicates a potential reversal of the previous trend
IntradayMoney.in Bullish Bearish
Engulfing
Engulfing
www.intradaymoney.in
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 www.dailyniftytips.in only sure shot tips..!
Indicates a potential reversal of the previous trend
IntradayMoney.in Bullish 50%
50%
Bearish
Piercing
Piercing
www.intradaymoney.in
Occurs when the next bar opening for price action completely gaps over/under the Real Body for the previous bar www.dailyniftytips.in only sure shot tips..!
Indicates a very high likelihood of potential reversal of the previous trend
IntradayMoney.in Bear Trap
Bull Trap
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Bullish Reversal
Topping Tail
IntradayMoney.in Bearish
Bottoming Tail
Reversal
www.intradaymoney.in
Down-Up-Down
Up-Down-Up www.dailyniftytips.in only sure shot tips..!
lower third of bearish bar
upper third of bullish bar
IntradayMoney.in Natural pullback
Down
Up Up
Down Natural pullback
Down
Up
www.intradaymoney.in
Price Action can only be described as: The interpretation of the daily price movement as to the continuation of the trend or lack thereof. www.dailyniftytips.in 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.
IntradayMoney.in
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.
www.intradaymoney.in TARGET
Price Action
STOP
www.dailyniftytips.in only sure shot tips..!
RISK REWARD
ENTRY
ENTRY
IntradayMoney.in
REWARD
RISK
TARGET STOP
LONG Entry •Up trend •Higher Highs & Higher Lows
Short Entry •Down trend •Lower Highs & Lower Lows
www.intradaymoney.in
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. www.dailyniftytips.in 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.
IntradayMoney.in
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?
www.intradaymoney.in
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? www.dailyniftytips.in We don’t, 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, wouldn’t 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.
IntradayMoney.in
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Scaling In
Scaling Out
Scaling In
Scaling Out
All-InAtOnce
AllOut-AtOnce
All-InAtOnce
AllOut-AtOnce
IntradayMoney.in
Multiple entries and One Exit
Multiple Entries and Multiple Exits
www.intradaymoney.in
3
4 www.dailyniftytips.in 2 only sure shot tips..! Minor Phases
3 4
Minor Phases
2
Down Trend
4
1 1
IntradayMoney.in 3
4
3
Up Trend
Minor Phases
2
2 4
2 1
1
Minor Phases
Expansion of movements www.intradaymoney.in Up Trend
Up Trend breakdown
www.dailyniftytips.in only sure shot tips..!
Down Trend Down Trend breakout
IntradayMoney.in Sideways Price Action
Breakout
Breakdown
www.intradaymoney.in
Up Trend and Price Movements Associated with “Higher Lows” and “Higher Highs” www.dailyniftytips.in only sure shot tips..! 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
IntradayMoney.in
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.
www.intradaymoney.in
Sideways Price Movements Focus on relationship of price action and “rate of increase” in price (i.e., slope of trend line) www.dailyniftytips.in only sure shot tips..! 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
IntradayMoney.in
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
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
1
2
1
3
4
IntradayMoney.in 2
3
4
www.intradaymoney.in
2 Price Action
www.dailyniftytips.in only sure shot tips..! 2
2
3
2
1
2 2
2
Bullish moves on lower time frames
IntradayMoney.in
ENTRY
Major Up Trend •Higher Highs •Higher Lows
Higher highs and higher lows provide evidence of bullish price action/uptrend
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..! Use technical analysis for BUY signals
Trading with the trending price action. 1
2
3
IntradayMoney.in Use technical analysis for for SHORT signals
2
3 1
www.intradaymoney.in
Review the average daily trading range to determine if price action is increasing/decreasing.
time trades better.
Conduct volume analysis to determine whether volume www.dailyniftytips.in 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.
IntradayMoney.in
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
www.intradaymoney.in
www.dailyniftytips.in only sure shot tips..!
Short signals
1
2
3
IntradayMoney.in
Buy Signals
Buying Signal
2
3
1
Short Signal
Very common chart pattern found in existing trending price
C
Represent a “pause” or consolidation of price action to determine whether to continue or reverse movement
Parallel 2 1
3
B
Can also include the category of chart patterns – pennants
action
A www.dailyniftytips.in only sure shot tips..!
www.intradaymoney.in
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
IntradayMoney.in
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
www.intradaymoney.in SHORT
www.dailyniftytips.in only sure shot tips..!
A
200 MA
Parallel
2
C
20 MA
1 3
B Flags
Higher Timeframe Downtrend
IntradayMoney.in
www.intradaymoney.in
Fibonacci Retracement used to measure the magnitude and strength / weakness of counter moves to the original trend. www.dailyniftytips.in only sure shot tips..!
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
IntradayMoney.in 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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