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Hi, failing to get my head around this slide and wondering if someone can clear up my confusion please? The overall point of the slide is to suggest you should take profits if a swing trade reaches it's target quickly. So why does it say "Buy PB for scalp?" and at the same time Al says "you got a swing size profit"? The profit looks 1:1 R:R. I also don't understand why you'd even take that trade. Appreciate any help to clarify what's happening here and why. Thanks.
Yes It might sound confusing because at the start Al focuses only on the scalp but then at the end he implies that trader could buy there for a swing as well.
Either you scalp or swing the stop is always at the same place.
Scalping means trying to get out in 1 to 3 bars with a reward that is smaller than the risk and can be equal to the average size of the most recent bars or even less ( scalpers can even go for half the size of the most recent bars).
a 1:1 risk/reward can still be considered a swing trade if you allow pullbacks and rely on you stop, allowing to market to take many bars to reach your target.
So if a scalper bought there in 1 bar they got a profit equal to their initial risk. That doesn't happen often ( it's a gift bar)
If a swing trader bought there in less than 5 minutes they got a profit that they were expecting to get maybe in 1 hour or so
Thanks for the answer Fred.
