{"id":113754,"date":"2021-03-14T08:00:40","date_gmt":"2021-03-14T15:00:40","guid":{"rendered":"https:\/\/www.brookstradingcourse.com\/?p=113754"},"modified":"2024-09-10T07:32:54","modified_gmt":"2024-09-10T14:32:54","slug":"scalping-2-minute-emini-chart","status":"publish","type":"post","link":"https:\/\/www.brookstradingcourse.com\/es\/trading-strategies\/scalping-2-minute-emini-chart\/","title":{"rendered":"Scalping series:<br>#02 Scalping 2-minute Emini chart"},"content":{"rendered":"\n<div style=\"position:relative;padding-top:56.25%;\"><iframe src=\"https:\/\/iframe.mediadelivery.net\/embed\/156715\/9a09ca28-3196-45b9-b484-4f65b4ede621?autoplay=false&#038;loop=false&#038;muted=false&#038;preload=true&#038;responsive=true\" loading=\"lazy\" style=\"border:0;position:absolute;top:0;height:100%;width:100%;\" allow=\"accelerometer;gyroscope;autoplay;encrypted-media;picture-in-picture;\" allowfullscreen=\"true\"><\/iframe><\/div>\n\n\n\n&nbsp;\n\n\n\n<p><em>Video duration 46min 04sec.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Scalping 2-minute Emini chart &#8212; Video transcript<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Introduction<\/h3>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-medium\"><a href=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/03\/Some-Setups-Are-Good-for-Both-Swing-or-Scalp.png\"><img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"169\" src=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/03\/Some-Setups-Are-Good-for-Both-Swing-or-Scalp-300x169.png\" alt=\"Some setups are good for both swing and scalp. Scalping 2-minute Emini chart.\" class=\"wp-image-113763\" title=\"\" srcset=\"https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/03\/Some-Setups-Are-Good-for-Both-Swing-or-Scalp-300x169.png 300w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/03\/Some-Setups-Are-Good-for-Both-Swing-or-Scalp-680x383.png 680w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/03\/Some-Setups-Are-Good-for-Both-Swing-or-Scalp-768x432.png 768w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/03\/Some-Setups-Are-Good-for-Both-Swing-or-Scalp-1536x864.png 1536w, https:\/\/www.brookstradingcourse.com\/wp-content\/uploads\/2021\/03\/Some-Setups-Are-Good-for-Both-Swing-or-Scalp.png 1920w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n<p>I\u2019m Al Brooks. Thank you very much for watching this video. It&#8217;s the second part of a series on scalping. I&#8217;m using a 2-minute Emini chart as an example.<\/p>\n\n\n\n<p>If you&#8217;re interested in finding some detailed rules about scalping, you can look at the <em><strong><a aria-label=\"Brooks Trading Course (opens in a new tab)\" href=\"https:\/\/www.brookstradingcourse.com\/price-action-fundamentals\/\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"rank-math-link\">Brooks Trading Course<\/a><\/strong><\/em>, or you can see the basic rules in the free <em><a aria-label=\"Scalping Rules video  (opens in a new tab)\" href=\"https:\/\/www.brookstradingcourse.com\/trading-strategies\/rules-for-scalping\/\" target=\"_blank\" rel=\"noreferrer noopener\" class=\"rank-math-link\">Scalping Rules video<\/a><\/em> (Part 1 of this series). This is part 2.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Emini Scalping on 2-Minute Chart<\/h3>\n\n\n\n<p>I\u2019m using a 2-minute chart as an example, but you trade it the same as you would a 5-minute chart, a 60-minute chart, a daily chart, or a weekly chart. If you watch television shows with professional traders, like on CNBC or Bloomberg or Fox, they sometimes will show hourly charts, sometimes daily charts, sometimes weekly charts, and sometimes monthly charts, and you don\u2019t hear them say, \u201cOh, this is a weekly chart and therefore I\u2019m going to trade it differently from how I trade a daily chart.\u201d Everybody trades all charts the same. They\u2019re all based upon human nature, rational human behavior. It doesn\u2019t matter what the timeframe is.<\/p>\n\n\n\n<p>Here we have consecutive bear bars, and one of them is a very big bar and it\u2019s closing near its low. For me, that\u2019s the minimum that I want to see for a Sell The Close bear trend. Always In Short. A bear trend. I want to see 2 bear bars, one with a big body closing on or near its low. It can be the second bar like this, but it could also be the first bar. And sometimes both bars will be very big bear bars.<\/p>\n\n\n\n<p>Some traders, as soon as they see this close near the low of the bar, a second consecutive bear bar, big bar closing near its low, they\u2019ll simply hit \u201cSell the market\u201d and they\u2019ll get filled around the open of the next bar. Others will trade with a stop 1 tick below the low of this bar. Most traders will make more money if they trade with stops. Sometimes the bars are extremely big and the market\u2019s moving very fast, and when that\u2019s the case, it\u2019s usually better to trade with limit orders because the appearance of the bar can change dramatically in the final seconds, and you don\u2019t know where the low of the bar will be until exactly when it closes. And then the next bar often moves very quickly, and you don\u2019t have time from the close of the bar to place a stop 1 tick below the low of the bar.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">ii Breakout Mode<\/h3>\n\n\n\n<p>Here we have a big bear bar, and then this bar is inside. It\u2019s an inside bar. Its low is above the low of that bar; its high is below the high of that bar. Then we have a second consecutive inside bar. Low above that low, high below that high. In general, if you have an ii (inside-inside), consecutive inside bar pattern, and the second bar is closing near its low, you would look to sell below it. It doesn\u2019t matter if this is a bear flag in a bear trend. It doesn\u2019t matter if it\u2019s the top of a Buy Climax. It could be a reversal. In general, if you have a strong bear bar for the second bar, it\u2019s better only to look to sell and not look to buy above. It\u2019s a BreakOut Mode pattern. It\u2019s a Triangle on a smaller timeframe chart, and some traders will simply trade it like a BreakOut Mode pattern. They\u2019ll sell below, they\u2019ll buy above.<\/p>\n\n\n\n<p>If it goes above, triggers the buy and reverses down, they\u2019ll get out of longs and possibly reverse to short below. If it goes below and triggers the short and then goes above the high of the ii, the first bar, they\u2019ll get out of shorts and many will go long.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Bear Breakout<\/h3>\n\n\n\n<p>BreakOut Mode pattern, so it\u2019s both a buy and a sell setup. Sell below, 1 tick below. Buy above, 1 tick above. And here we have a bear breakout. As I said, with the bear bar closing near its low, with the market below the 10-bar Exponential Moving Average, with a big bear bar here, we\u2019re probably going to get a second leg sideways to down. This is a good-looking sell. Sell on a stop 1 tick below the low of that bar.<\/p>\n\n\n\n<p>And these bars are about 4 points tall, 3 points, 4 points, 5 points tall. You have to decide how much you want to scalp for if you\u2019re scalping. In general, you\u2019ll probably be scalping for about half the size of an average range. So if these bars are about 4 points, you might try to scalp out for 2 points. You sell on a stop 1 tick below that bar and you\u2019d get filled right here.<\/p>\n\n\n\n<p>And you immediately place a bracket order, maybe a stop up here and a profit-taking limit order 2 points below. It fell 10 ticks below the low of that bar, which is exactly what it had to do for you to scalp out with 2 points. You sell 1 tick below that bar, and then if you\u2019re trying to make 2 points, 8 ticks, it has to fall 8 ticks. And if you have a limit order to buy back your short, the limit order usually is not going to get filled unless it falls 1 more tick. So, the low of this bar has to be 10 or more ticks below the low of that bar for you to sell 1 tick below that bar and scalp out with 2 points (8 ticks).<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Probable bear trend<\/h3>\n\n\n\n<p>We\u2019re in an early bear trend. We reversed down from the Moving Average, reversed down again near the Moving Average, reversed down again. It\u2019s a Sell The Close bear trend, so traders will sell the market. They\u2019ll sell as soon as a bear bar closes near its low, and they\u2019ll sell with a stop below the low of the bar. Again, as I said, this is early in the day. The bars are big, and if you\u2019re scalping, it\u2019s probably good to scalp for 2 points. If the bars were 20 points tall, you might scalp for 5 or 10 points, about half as many points as there are in the average bar. If the bars are only 2 or 3 points tall, you\u2019d scalp for 1 point.<\/p>\n\n\n\n<p>Here we have another big bear bar closing on its low. If you sold below the low of that bar and you had a limit order to take 2 points\u2019 profit 8 ticks below your entry, you would have been filled on that bar. You\u2019d scalp out with 2 points.<\/p>\n\n\n\n<p>We have another bar closing on its low. Good size bodies. It\u2019s still a Sell The Close bear trend, so you could still sell the market on the close of the bar. Sell the market as the bar is forming or sell on a stop below the low of that bar.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Possible Micro Wedge on Smaller Timeframe Chart<\/h3>\n\n\n\n<p>There\u2019s a problem here. This could be forming a Micro Wedge on a smaller timeframe chart. We went down here, we went up here. We went down here, and we went up here. So this is actually a second leg down, and therefore this is a third leg down. Therefore, it\u2019s a Micro Wedge, a small Wedge on a smaller timeframe chart, and that could attract some profit-takers, and therefore we may get a reversal soon. So if you sell below the low of this bar, you have to be able to make quick decisions. Also, the bodies are getting bigger \u2013 here, a little bit bigger here, and a little bit bigger here. So it\u2019s accelerating down in a Parabolic Wedge, and that often attracts profit-takers. So if you\u2019re selling down here, you only take the short below this bar if you can make quick decisions, because there\u2019s a risk of a reversal.<\/p>\n\n\n\n<p>Also, an ii in a bear trend often is the final bear flag, so it breaks out below and then it comes back to the ii. Remember, an ii is a Triangle on a smaller timeframe chart. A Triangle is an area of agreement. Traders thought this was a fair price, and now it\u2019s cheaper than a fair price, so bulls might start to buy aggressively and bears will stop selling, and it could come back to that ii, the apex of that Triangle. So there\u2019s an increased risk here of a reversal.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Scalps must be high probability<\/h3>\n\n\n\n<p>It was reasonable to sell below this bar because we could\u2019ve just kept going down, down, down, and if you sold below and you have this bull bar closing on its high, it\u2019s a credible buy. It\u2019s a Parabolic Wedge and we have a magnet here, an ii. Traders thought this was a fair price and we might come back to that fair price, and we have a bull bar closing on its high. If you sold below that bar, you\u2019d get out above that bar and you\u2019d take an 11 tick loss. If you\u2019re flat, you could go long above this bar, trying to get a scalp \u2013 either a 2 point scalp or maybe hold for a test of that Triangle.<\/p>\n\n\n\n<p>Could you hold short after a 7-bar bear Micro Channel, 7 bars, every high at or below the high of the prior bar? Well, usually the first reversal up from a 7-bar Micro Channel and reversal up after 3 big bear bars is going to be minor. We\u2019ll go up a certain number of bars \u2013 I don\u2019t know, 2 bars, 10 bars \u2013 but we\u2019ll probably test back down at some point. So some bears will sell as it goes higher.<\/p>\n\n\n\n<p>Remember, some bears sold the close of this bar or below its low and they were disappointed by this bar. They never had an opportunity to get out breakeven. Most would get out here with a loss, but some will hold, expecting this close to get tested. So they\u2019ll sell and then they\u2019ll look to sell more higher, expecting the market to come back down around that close. That would allow them to get out breakeven on that sell, and with a profit on the higher sell. If you\u2019re scalping, you don\u2019t do that. You just quickly get in, you quickly get out. So if you sold below, you would get out above that bull bar or you\u2019d even reverse to long.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Bear Bars Reversing down near Moving Average<\/h3>\n\n\n\n<p>Remember in the first video on scalping, I talked about this. I said that when it\u2019s near the Moving Average and you\u2019re getting bear bars reversing down, you sell below. But if you\u2019re reasonably far from the 10-bar Exponential Moving Average and you get a pretty good bull bar, the market usually tries to get back to the Moving Average, so bulls will buy.<\/p>\n\n\n\n<p>Parabolic Wedge, bull bar closing near its high. We\u2019re far below the Moving Average, so it\u2019s a climactic reversal up. And because it\u2019s a Parabolic Wedge, we might get a couple legs sideways to up.<\/p>\n\n\n\n<p>We have a second bull bar closing on its high. Traders will buy above the high of that bar. And this bar closing on its high with a good size body, they\u2019ll buy on the close of that bar. Some of the bulls who bought here have a limit order to get out with 2 points, so they\u2019ll get out somewhere up in here with 2 points. Others will look at this and say, \u201cThat\u2019s a pretty good bar. We have a magnet above the Moving Average. We have that ii. Maybe I\u2019ll hold long, and maybe I\u2019ll even buy more above a bull bar closing on its high.\u201d So they might buy here and they might buy more here, expecting it to go up there.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Most Traders Do Not Like to Reverse<\/h3>\n\n\n\n<p>I said that if a trader sold below this bar and exited above this bar, he probably would not reverse. Most traders do not like to reverse because if you\u2019re thinking short, it\u2019s hard emotionally to be completely objective. Therefore, the probability of you making the correct assessment is lower. You don\u2019t have much of an edge as a trader, and if at any time you feel less than at your best, it\u2019s usually better not to take the trade. Most traders end up not reversing. They get out and then they wait a bar or two, and then they start trading in the new direction.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Consecutive Strong Bull Bars<\/h3>\n\n\n\n<p>Consecutive bull bars, decent size bodies, closing on the high. We\u2019re probably Always In Long. We\u2019re probably going up higher, maybe to the ii. It could be a bull trend. As I said, if you bought above this, you could try to scalp out with 2 points. Or you could look at this bar and say, \u201cWell, we\u2019re Always In Long. We\u2019re probably going higher. I\u2019m going to hold and get out maybe up here, or hold until it stalls and then get out, or possibly even buy more.\u201d<\/p>\n\n\n\n<p>Another bull bar. A smaller body and a conspicuous tail on top, so a little bit of loss of momentum. It\u2019s still Buy The Close. It\u2019s still closing in the upper half, the upper third, but it\u2019s less reliable. If you bought 1 tick above the high of that bar and you\u2019re scalping for 2 points, you\u2019d get out right there.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Scalper Can Exit with Scalp \u2013 Sometimes Hold for Swing<\/h3>\n\n\n\n<p>It\u2019s a Buy The Close bull trend. As I said, you do not have to get out. You could hold or you could buy more or you could buy more above this bar as well.<\/p>\n\n\n\n<p>Okay, so this is an example where you buy. You see a very strong bull bar. Consecutive strong bull bars. Now Always In Long. Probably we\u2019ll get a couple legs up. You could buy more.<\/p>\n\n\n\n<p>This is a 2 minute chart. Everything happens very quickly. Also, the appearance of the bar very often changes dramatically in the final second or two. So when you\u2019re looking at a picture like this, it\u2019s easy to see where to enter. You sell below, sell below, buy above, buy above. But in real time, very often, probably most of the time, the bar does not look like this until the end of the bar. So you have to make quick decisions and place orders quickly.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Bad Sell Setup<\/h3>\n\n\n\n<p>Now we have 3 consecutive bull bars, all closing on or near their highs, but we\u2019re around a 50% pullback and we\u2019re getting close to the ii, a magnet. Might get some profit-takers. And we\u2019re at the average price. Might get some profit-takers. So it might stall here. Now, for the bears, they\u2019re hoping it gets back to this close. They were disappointed by this bull bar. They never had a chance to get out breakeven. So some bears are holding short. If it comes down near that close, they\u2019ll buy back their shorts. Some of them are looking to sell up here somewhere if they can get a bear bar closing near its low, taking a chance that we\u2019ll come back down here.<\/p>\n\n\n\n<p>3 consecutive bull bars after a Sell Climax. We should get a second leg up, and therefore, do you think there\u2019ll be more buyers or sellers at the low of this bar? Probably buyers, so I would not place a stop order 1 tick below. Instead, if I\u2019m scalping, I would put a limit order exactly at the low of the bar. It usually will have to go 1 tick below the low of that bar for my limit order to get filled.<\/p>\n\n\n\n<p>Bear bar closing on or near its low. We have Sell The Close bears here disappointed by this. They might sell more below here, hoping that it comes down here. They could get out breakeven on their first sell and with a profit on that sell. But now we\u2019re Always In Long, and chances are we\u2019re going to get a couple legs up, and therefore there are probably buyers not too far below the low of this bar.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Scalpers Often Scale In<\/h3>\n\n\n\n<p>Can you buy with a limit order at the low of this bar? It\u2019s a 5-bar bull Micro Channel. 5 bars, the lows are at or above the low of the prior bar. You\u2019re at the Moving Average. We have a bear bar closing near its low. We have a magnet here. I think it\u2019s probably not worth buying at the low of that bar. However, you might buy a point or two below and use a stop down below this. And for the bears, I don\u2019t think it\u2019s a very good short. We have 3 good bull bars, we\u2019re Always In Long. A second leg sideways to up is likely. I usually like to trade in the direction of the trend, and I think the trend is now long.<\/p>\n\n\n\n<p>We have a bear trend, a pullback, so this is a Low 1 sell signal bar. But it\u2019s also now Always In Long, so it could be a Small Pullback Bull Trend where the market just goes a little bit below this and keeps going up. In other words, we have an early bull trend, a reversal attempt, and it\u2019s just a pullback in this. So it drops for a few ticks and then goes higher. Drops for a few ticks and then goes higher. So it could be the start of a Small Pullback Bull Trend.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Scalpers Sometimes Exit with Profit During Entry Bar<\/h3>\n\n\n\n<p>We went below the low of the bar and we reversed up. I said many bulls would not buy that low, but they might place a limit order to buy 1 point lower, 2 points lower, 3 points lower. And had they bought that low with a limit order, and it fell 4 ticks below that and now it\u2019s back up there, they could\u2019ve made 1 point. Other bulls would not buy at the low of a bear bar at the Moving Average, but they might start buying a point or two lower, and they made money when it got back up to the low of that bar.<\/p>\n\n\n\n<p>This low is 9 ticks below that low. It\u2019s a 9-tick bear trap. Now, why do I call it a 9-tick bear trap? Remember what I said a few minutes ago? I said that if you sell on a stop below the low of a bar, the next bar has to fall 10 ticks below that low to scalp out for 2 points. There are a lot of bears that sold 1 tick below that bar. They placed a limit order to buy back their shorts 8 ticks below, and therefore there are a lot of bears with limit orders buying 9 ticks below that low. And if it hits their limit order, most of them will not get filled, and if it starts going up, the bears will panic and they\u2019ll buy back their shorts. They\u2019re trapped into a bad trade, and that\u2019s why I call it a 9-tick trap.<\/p>\n\n\n\n<p>Now, we have a doji bar here, a doji bar here. Those are Trading Range bars. The market went down, it went up, it went down, it went up. So we\u2019re getting a lot of reversals. These dojis could be a sign that we\u2019re starting to enter a Tight Trading Range. If the market\u2019s in a Tight Trading Range, traders will buy below, buy more lower. They\u2019ll sell above, sell more higher. So what should you do here? Should you buy? Yes. Should you sell? Yes. If we\u2019re in a Tight Trading Range, we\u2019re probably not going to go all that far up or all that far down over the next few bars, so some traders will sell, sell more higher, buy, buy more lower, and then both will scalp.<\/p>\n\n\n\n<p>If a bull bought that low and bought more 2 points lower, it had to fall 9 ticks. If he buys that low, 2 points lower is 8 ticks below the low of that bar. It has to fall 9 ticks for him to get filled. He would be filled here. He could get out breakeven on his first buy and with a profit on his lower buy. But the stop order bears are trapped. It had to fall 10 ticks for them to make money. They sell 1 tick below. Limit order bulls buy at the low, not 1 tick below. So limit order bulls only needed it to fall 9 ticks for them to scale in 2 points below. Stop order bears need it to fall 10 ticks to make 2 points.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Sometimes Trade Goes First Wrong Way<\/h3>\n\n\n\n<p>Here we got a decent size bear bar. Closed in its lower half, but closed at the low of this bar, not below. So it\u2019s not all that bearish. We\u2019re probably still Always In Long. This looks more bullish than this looks bearish. Remember I said there were Sell The Close bears here who are upset by this, and they\u2019re trying to get out breakeven. After all of this, instead of placing a limit order to get out breakeven at the close of that bar, they might be willing to take a small loss. They might place a limit order 2 or 3 or 4 ticks above the close of that bar, and if they did, they would\u2019ve been filled here, and they bought back their shorts from here with a small loss. The stop order bears who sold below here now did make 2 points.<\/p>\n\n\n\n<p>4 bars without a bull body. We\u2019re still likely to get a second leg sideways to up after a Parabolic Wedge and a strong reversal up, but that\u2019s not a good-looking stop entry buy. And for the bears, I think we\u2019re still Always In Long. They have not had consecutive big bear bars closing on their lows \u2013 plus we\u2019re still above that low. I would not be selling down here.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Some Setups Are Good for Both Swing or Scalp<\/h3>\n\n\n\n<p>Bulls, we got a big reversal up, and look where it reversed up from \u2013 from below that close. So the bears who held and sold more below here and they started to get out around breakeven, they were able to get out breakeven on the close that they sold here and a profit there. In part, this big tail, this reversal up, is from bears buying back shorts.<\/p>\n\n\n\n<p>Well, guess what? The bulls are not stupid. They know that the bears who sold this close were trapped, and those bears will be eager to buy at that close. So if you\u2019re a bull, what are you going to do? You might place a limit order to buy at that close, or a tick or two above that close, thinking that a whole bunch of bears are going to buy back their shorts. The bears are saying, \u201cOh, thank you, I\u2019m able to get out without a loss,\u201d and they\u2019re not eager to sell again. So this tail is caused both by these Sell The Close bears getting out, being thankful to be able to get out without a loss, and from bulls betting that the bears would panic out, buy back their shorts, and that we would get a second leg up after this.<\/p>\n\n\n\n<p>A good-looking buy signal bar. It could be better. A bar could close on its high. It could close at the Moving Average. But it\u2019s still a pretty good buy signal bar. On a smaller timeframe chart, it\u2019s probably a Wedge Double Bottom. We went down, we went up, we went down, we went up, and we went down, we\u2019re going up. So it\u2019s three legs down and it\u2019s a Higher Low Double Bottom. That\u2019s a pretty reliable and pretty common buy pattern and a very good buy signal bar. So it\u2019s a credible buy here. And this could be a Major Trend Reversal. A Major Trend Reversal means a couple legs up, maybe 10 bars or more up. On a 2-minute chart, 10 bars is 20 minutes. On a 2-minute chart, it could be a major reversal, but on a 5-minute chart or a 15-minute chart, it would be a minor reversal, just a bar or two.<\/p>\n\n\n\n<p>So we have a Higher Low Double Bottom, a Parabolic Wedge selloff, and a reversal up with a pretty good bull bar. As I said, we could get a couple legs up over the next 10 bars, so you could buy that for a swing up or you could buy it for a scalp.<\/p>\n\n\n\n<p>You buy on a stop above the high of that bar. You\u2019re disappointed that this bar is not all that big. If you took the buy, I would put the stop below the low of this bar.<\/p>\n\n\n\n<p>I talked about this. The bears who sold that close or below the low of that bar were able to get out around breakeven.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Every Trading Range Has Both Buy and Sell Signal<\/h3>\n\n\n\n<p>Now, what do you do if you bought above the high of this bar? Is this very disappointing? Are you thinking, \u201cOh my gosh, I\u2019ve got to get out\u201d? Or are you thinking, \u201cEh, that\u2019s not all that bearish, we should get a couple legs up; I\u2019m going to keep a stop below this bar and take my chances\u201d?<\/p>\n\n\n\n<p>Possible Small Pullback Bull Trend. Right now we have a Trading Range. We have a Double Bottom and a Double Top. It\u2019s BreakOut Mode. But we\u2019re Always In Long from this, and now we have a Higher Low Major Trend Reversal. So it\u2019s slightly more bullish than bearish. You can call it a Triangle. We have three lows \u2013 one, two, and three \u2013 and two highs and a Trading Range. We have Lower High, Higher Low, Higher Low. BreakOut Mode. But slightly more bullish.<\/p>\n\n\n\n<p>That\u2019s not a good-looking sell, and if it\u2019s not a good-looking sell, there probably will be buyers below. So limit order bulls would place a limit order to buy at the low of that bar and put a stop down here. They might buy more a point or two lower.<\/p>\n\n\n\n<p>The bulls are hoping this is the start of a bull trend. They see this as a pullback. We now have an ioi. We have an outside bar and then an inside bar. The bar before an outside bar is always an inside bar, so it\u2019s an ioi. It\u2019s another BreakOut Mode pattern like an ii over here. It\u2019s a bull bar closing near its high. When you have these small BreakOut Mode patterns and the third bar is a bull bar closing near its high, it\u2019s better not to look to sell. It\u2019s better only to look to buy. And here, a bar closing on its low below the Moving Average, it\u2019s better only to look to sell below and not buy above. And now we\u2019re above the Moving Average and we have an ioi and a bull bar closing near its high, so it\u2019s a stop order buy above that high. We\u2019re still in a Triangle, and we could stay more sideways, but it\u2019s more bullish than bearish. If you take that buy above that bar, your stop is still probably below this low.<\/p>\n\n\n\n<p>The limit order bulls who bought at the low of that bar, they got filled over here. They could scalp out right here. They could also hold long.<\/p>\n\n\n\n<p>Again, as I said, this was an ioi, an outside bar followed by an inside bar. So the bar before the outside bar has to be inside. If this is outside, the bar before it has to be inside. We\u2019re still on the Double Bottom here. We have the buy above the Double Bottom, and this is a pullback. It\u2019s a bull flag. The bulls are hoping it\u2019s a Small Pullback Bull Trend, so a bull trend where you get a small pullback, a bar or two, not too low, and you go up, and then another small pullback and you go up.<\/p>\n\n\n\n<p>Can you buy above the top of that ioi? I think it\u2019s okay. It\u2019s closing above the Moving Average. We\u2019re Always In Long. The problem you have is you\u2019re buying at the top of a Trading Range, top of a Triangle, and that\u2019s somewhat lower probability.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Breakout Mode \u2013 Often Can Scalp in Either Direction<\/h3>\n\n\n\n<p>Now what do you do? We have another ii. Pair of inside bars, and it\u2019s also an ioii. So we still have the ioi here, and now it\u2019s ioii. It doesn\u2019t matter that it\u2019s now an inside bar; it\u2019s still a BreakOut Mode pattern. It\u2019s a bear bar closing near its low, so you will start to get some bears selling below the low of that bar. But we still have a bull bar closing near its high. You\u2019ll get bulls buying above the high of that bar. Even though this bar is a bear bar, this bar is a pretty good bull bar. It\u2019s BreakOut Mode. Traders will buy above that bull bar, which is also the high of that bear bar, and they\u2019ll sell below that bar. Two legs up \u2013 one, pullback, two. Two legs up \u2013 one, pullback, two.<\/p>\n\n\n\n<p>Remember, down here I said the minimum goal for the bulls was a couple legs sideways to up, and that\u2019s what we have. One, pullback, two. Right now it\u2019s still on the buy above this and the buy above that. It\u2019s slightly more bullish than bearish.<\/p>\n\n\n\n<p>It could not be going sideways if it was 60% or 70% certain that we were going up. It\u2019s better than 50%, but not 60%.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Stop Entry<\/h3>\n\n\n\n<p>Now, can you take that sell? You can. The bars are pretty small. You might try to scalp for 2 points and may switch to 1 point since we\u2019ve been in a Tight Trading Range for 8 bars here, from here to here. Not much profit potential. If you did sell below that bar, you\u2019re probably disappointed by this. If you sold below it, it fell 6 ticks. If you\u2019re scalping for 1 point, it has to fall 6 ticks to make 1 point. You sell 1 tick below the bear bar, it has to go 4 more ticks to reach your limit order, and it has to go 1 more tick to fill your limit order. It did exactly that. This low is exactly 6 ticks below that. So the bears who sold that were able to scalp out for 1 point.<\/p>\n\n\n\n<p>Now, what about the bulls? Will they buy above this bar? Well, we have consecutive bear bars. You could redraw the Triangle. Instead of one, two, three, it might now be one, two, and three. But 2 bear bars, not a very good stop entry buy. Because it\u2019s a Tight Trading Range, you will get limit order traders buying. They might not buy the low of this bar, but they might buy a point or so below \u2013 1 point below, 2 points below \u2013 betting that we\u2019re going to continue to reverse.<\/p>\n\n\n\n<p>The bears who sold below the ii, the bars are getting smaller. If they scalped for 1 point, they would\u2019ve made their 1 point. They would\u2019ve gotten out here, 1 tick below the low of the bar. That tail on the bottom of the bar tells you that the bears who sold below that bear bar scalped. They scalped for 1 point. It fell 6 ticks and reversed up. That tells you there were a lot of buyers down there. Most of those buyers are bears scalping out. Some of those buyers are bulls buying a point or so below the low of that bear bar, betting that the bears would scalp out \u2013 and also, because it\u2019s a Tight Trading Range, traders will buy below things and scale in lower.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Triangle \u2013 Often Need to Redraw Lines<\/h3>\n\n\n\n<p>You can redraw the Triangle. Still a Tight Trading Range, since over here, but a bull bar. Not a good sell below. A bear bar. Not a good buy above. Probably more limit order traders, buying a point or two below a prior bar, selling a point or two above a prior bar, and trying to scalp out for 1 point. Stop order bulls, if they bought, they would\u2019ve made 1 point. I\u2019m not sure that it\u2019s worth buying with a stop after 2 bear bars in the top of a Tight Trading Range.<\/p>\n\n\n\n<p>Big tail on top, so another reversal down. You can redraw the Triangle. Still BreakOut Mode, but I think we\u2019re still Always In Long. A good reversal here and a good reversal here. This is not quite as good as that. This is not quite as good as that. So I think it\u2019s still slightly more bullish. As I said, it\u2019s barely better than 50\/50. We could not be going sideways in a tight range if one side or the other side had a 60% or 70% chance of a breakout. If it was so obviously bullish or so obviously bearish, it would be breaking out right now. We would not be going sideways like this.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Strong Breakout<\/h3>\n\n\n\n<p>Very good bar. Why? Well, look at the high of the bar. First of all, it\u2019s a big bull bar closing on its high. Consecutive bull bars, and it closed above this high and it closed above that high, and it closed above these bars. So it closed above the high of the past 15 bars or so. Pretty good breakout bar. Some bulls will buy the close, some will buy on a stop above the high, hoping that we\u2019re finally going up. We have a Double Bottom, a slightly Higher Low Major Trend Reversal, and a Trading Range. Couple legs down \u2013 one, pullback, two. Not a good buy signal bar, but now we\u2019re breaking to the upside.<\/p>\n\n\n\n<p>When you\u2019re looking to buy, you either want good-looking buy signal bars with good context \u2013 it has to make sense when you look to the left \u2013 or you wait for a strong breakout. This is an example of a bad buy signal bar, but a good breakout.<\/p>\n\n\n\n<p>Closed above all of these bars, all the way out here. That increases the chances that we\u2019re going higher, so you will get bulls buying above the high of that bar. Some bulls will wait to see the follow-through bar, and if the follow-through bar is a big bull bar closing near its high, or even a small bull bar, they\u2019ll buy the close of the bar, or they\u2019ll buy above the high of the bar. Bars getting bigger again, so if you\u2019re scalping, you go back to 2 points.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Bull Surprise<\/h3>\n\n\n\n<p>Consecutive big bull bars closing on their highs. Two closes above the Trading Range. We\u2019re probably going up. This is clearly a resumption of the bull trend, and it\u2019s the strongest move up or down all day. So it\u2019s Buy The Close, buy the market. You buy above bars. You can swing or scalp. It\u2019s a bull surprise. This is a surprise, but now we have 2 big bull bars closing near their highs. That\u2019s even more of a surprise. A surprise typically is going to have at least a couple legs sideways to up. Traders will buy the first attempt to reverse down, confident that we\u2019ll get a second leg up.<\/p>\n\n\n\n<p>If you bought above the high of this bar, you could scalp out for 2 points, or you could hold for a swing. Once this bar closes, it\u2019s another buy above the high of the bar or at the market as soon as the bar closes. If you bought above this bar and did not scalp out, you could buy more here. You could take several buys on the way up if your account size is big enough, and if you\u2019re trading a small enough position.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Losing Momentum<\/h3>\n\n\n\n<p>A bull bar, but a smaller bull bar. However, it\u2019s still closing on or near its high and we\u2019re breaking out to a new high of the day. It\u2019s still Buy The Close, Buy The Market as soon as the bar closes or buy above the high of the bar. But possible Double Top here, so we might get some profit-taking soon. Bulls could buy above the high of that bar. They could buy above the high of this bar.<\/p>\n\n\n\n<p>Disappointment. So if you bought above the high of this bar and you did not scalp out, or if you bought above the high of this bar and you see a small bear doji reversing down, possible Double Top, a lot of the bulls will get out and then wait for the next buy signal. You don\u2019t have to. We have 4 bull bars, a bull surprise. We should get a second leg up. You could use a wider stop. My general rule on the 2-minute chart is get out a tick below a strong bear bar; get out 4 ticks or so below a bull bar or a weak bear bar. So you might get out 4 ticks below that.<\/p>\n\n\n\n<p>What about shorting? A big Low 2. One leg up, pullback, second leg up. A Double Top. This is too strong. Remember, it\u2019s a bull surprise. We should get a second leg up, and therefore I would not be selling below that bar.<\/p>\n\n\n\n<p>Some bulls bought above the high of the bar. They\u2019re disappointed by the bar when it closed, and they might try to get out breakeven. They could exit breakeven. Once this bar closes, they could place a limit order to get out breakeven or with a tick or two loss. Or they could exit a point or two below the low of that bar. Chances are there\u2019ll be buyers below that bar. It\u2019s not a good-looking sell, and we have 4 bull bars, 3 closing on or near their highs. We should go higher, so there probably are more buyers than sellers below that bar. So some bulls will actually buy at that low or buy a point lower, 2 points lower.<\/p>\n\n\n\n<p>Higher High, so it\u2019s a Higher High Double Top with a bear bar, but a 6-bar bull Micro Channel and very good reversal up. We should get a second leg up, so I would not be shorting yet.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Bulls Buy Reversal Down<\/h3>\n\n\n\n<p>Now we have a 7-bar bull Micro Channel. The bull bar is closing in its upper half, but these 2 bars are small. The bodies are shrinking. Here, smaller, bear bar, small bar. So we\u2019re getting some profit-taking here, and this is less reliable Buy The Close or buy above the high of the bar. We might be entering a Tight Trading Range. You could still buy, but you probably need a wide stop. A wide stop means different things to different people. In general, when you\u2019re scalping for 2 points, it\u2019s probably better to get out a point or two below a bull bar and a tick below a bear bar closing below its midpoint and having more than a 1 tick bear body.<\/p>\n\n\n\n<p>We have a decent bear bar. It\u2019s reasonable to get out below the low of the bar. It did not go below the low of the bar. Why not? The bulls knew if it went below the low of that bar, a lot of the bulls would start to exit. So what did the bulls do? As soon as that bear bar closed, they bought. They did not want the next bar to go below its low. They don\u2019t want to get out. They think we\u2019re going to get a second leg up. The bulls who bought here, the bulls who bought above that bar got filled here. They could scalp out here.<\/p>\n\n\n\n<p>Now, this might be a third leg up \u2013 one, two, three. So we might get some profit-taking. There\u2019s no reason to sell yet, but we\u2019re getting bear bars here. We might start to get limit order bears \u2013 this is a High 1 bull flag. We have a bear bar here, a second bear bar. So you might start to get some bears selling, either at the high of this bar or a point or two above the high of the bar, betting that these bars are a sign that the market\u2019s getting exhausted and we might enter a Trading Range.<\/p>\n\n\n\n<p>High 1, but 2 bear bars and a decent size bear bar and a third leg up \u2013 one, two, three. Remember, the bulls are looking for a second leg up after this. They have it. They might get a third and fourth and fifth leg up, but at a minimum they\u2019re looking for a second leg up. Also, we spent a lot of time going sideways here. This might not end up as a very strong bull trend. It could soon enter a Trading Range.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Scale into Shorts above Bear Bar<\/h3>\n\n\n\n<p>Now, some bears will sell that high and start to scale in higher, a point or two higher, betting that we\u2019ll come back to these lows, that this is an area of agreement \u2013 3 sideways bars and we have a Wedge. In general, when the market\u2019s in a reasonably strong bull trend, you should not be selling with limit orders. Sometimes I\u2019ll do it, but you have to be really careful. You have to be confident that this is not going to keep going up. There has to be some reason for you to think it\u2019s not going to keep going up.<\/p>\n\n\n\n<p>Well, we had a lot of bear bars here, a Trading Range here, and now we\u2019re starting to get bear bars here and it\u2019s a third leg up. So some bears will sell that and sell more higher, or instead of selling here, they might start to sell 2 points higher.<\/p>\n\n\n\n<p>Traders don\u2019t like to reverse, so the traders selling here are not bulls taking profits and reversing. These are simply bears betting that we\u2019ll come down far enough for a scalp.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Trading Range Likely Soon<\/h3>\n\n\n\n<p>Bear bar closing on its low. It\u2019s actually an ioi. This is an outside bar, and now we have an inside bar. So theoretically it\u2019s a sell below there. It\u2019s a Low 2 top \u2013 Low 1, Low 2, plus we have a Wedge \u2013 one, two, and three. I\u2019m not ready to sell with a stop. It\u2019s still a Small Pullback Bull Trend, a Tight Bull Channel. For the bulls, this is a High 1, but we\u2019re starting to get bear bars \u2013 here, here, here. The count may change. So it might be this is Leg 1, pullback, Leg 2, pullback, Leg 3. So instead of a Wedge being here \u2013 one, two, three \u2013 this might have started the count over again, so this is one, pullback, two, pullback, three.<\/p>\n\n\n\n<p>In general, if it\u2019s a clear third leg up and you\u2019re starting to get bear bars, you only take the buy if you can make very quick decisions, because very often it\u2019ll only go up a bar or two and then reverse and get a couple legs down.<\/p>\n\n\n\n<p>Some bears sold this high, sold more higher, or they simply sold higher, and it had to drop 1 tick below the high of that bar for them to get out with a profit on their higher sell and breakeven on their first sell \u2013 and it did. This went just 1 tick below that, so the bears could get out with a profit on that sell and breakeven on that sell.<\/p>\n\n\n\n<p>Bears are starting to make money. If bears are starting to make money in a bull trend, the bull trend is becoming weaker, and it increases the chances that we\u2019ll get a Trading Range soon.<\/p>\n\n\n\n<p>A High 1, but a third leg up \u2013 one, pullback, two, pullback, three. It\u2019s a credible buy, but if you\u2019re a bull who bought above that bar and you have this for your entry bar and then you have this, a lot of the bulls will try to get out around breakeven, thinking that we might start to pull back soon.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Tight Trading Range \u2013 Not Much Profit Potential<\/h3>\n\n\n\n<p>4 small bars in a Tight Trading Range and then 3 bars in a Tight Trading Range here. This is not good stop order trading. It\u2019s more of a limit order market, a Tight Trading Range. And that\u2019s what we did. We went sideways there. Tight Trading Range. It\u2019s a limit order market. Traders buy below, buy more lower, scalp out. They sell above, sell more higher, and scalp out. Most traders should not trade in a Tight Trading Range, especially when the bars are small like this. They\u2019ll lose money.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">2-Minute Chart \u2013 50 Setups a Day<\/h2>\n\n\n\n<p>This is about 2 hours of trading, and in this 2 hours, if you added up all the wins and losses, you would\u2019ve ended up with 18 points in 2 hours. That\u2019s about $900 in the Emini, and then you subtract out commissions. But if you traded it perfectly, you could\u2019ve made $900 in a couple hours per contract.<\/p>\n\n\n\n<p>On the 2-minute chart, there are at least 50 or more reasonable scalps each day. A really aggressive scalper might take half of them or a third of them. Most traders who trade very intensely and aggressively do it for an hour or two at a time because it just becomes too stressful. They get tired. They have a hard time focusing. They lose their edge. They can\u2019t make decisions fast enough. If they traded well, they already have a lot of profit, so there\u2019s less incentive.<\/p>\n\n\n\n<p>Remember, when you\u2019re trading, you have two goals. One is to make money and the other is to be happy. You\u2019re planning to do this for a career, a long, long time, and you cannot be stressed out all the time. If you try to take every trade, you\u2019ll be miserable. You won\u2019t be able to do it. You can go on YouTube and watch that episode from \u201cI Love Lucy\u201d back in the 1950s, \u201c<a href=\"https:\/\/www.youtube.com\/watch?v=NkQ58I53mjk\" target=\"_blank\" aria-label=\"I Love Lucy and the Chocolate Factory (opens in a new tab)\" rel=\"noreferrer noopener\" class=\"rank-math-link\">I Love Lucy and the Chocolate Factory<\/a>\u00bb episode, and it gives you an idea of what happens when you try to do too much. It\u2019s only a 2-minute clip, so you might get a kick out of it.<\/p>\n\n\n\n<p>There are a lot of choices available for scalpers, right? There are different ways to do it. But this is one reasonable version of what scalpers would do. Again, most scalpers are not going to take all these trades, but a good scalper will take a lot of them and have a very high winning percentage.<\/p>\n\n\n\n<p>This is theoretical. It\u2019s good practice to think about setups. It\u2019s good to get quick at recognizing patterns. Most traders will make more money swing trading and entering with stops. However, there are some traders who are extremely good scalpers. They win 80%, 90% of the time and they might take 10, 20, 30 trades a day, and they can make a very good living. Most traders will be stressed out and not enjoy doing it. Most traders can\u2019t do it, but those who can, a lot who can, will get stressed out. It\u2019s okay to do it in spurts for a half hour or an hour or so, but to try to do it for a living, you\u2019re not going to be able to do it. It\u2019s much better to look for swing trades, enter with stops. Much less stress, much more profit.<\/p>\n\n\n\n<p>I scalp a lot. A lot of times I\u2019ll take a trade that is a possible swing trade, but it disappoints me as soon as I enter, and I\u2019ll end up scalping out. I have never scalped perfectly for an entire day, and I\u2019ve been doing this now for close to 35 years. I\u2019ve never met anyone who has scalped perfectly for an entire day. But if you\u2019re a good scalper, you can make a lot of money if you take a lot of trades and manage them well.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Close<\/h2>\n\n\n\n<p>Again, I\u2019m Al Brooks. Thank you so much for your attention. I hope that you find this video helpful.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-css-opacity\"\/>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; Video duration 46min 04sec. Scalping 2-minute Emini chart &#8212; Video transcript Introduction I\u2019m Al Brooks. Thank you very much for watching this video. It&#8217;s the second part of a series on scalping. I&#8217;m using a 2-minute Emini chart as an example. If you&#8217;re interested in finding some detailed rules about scalping, you can look [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"shadow","_genesis_layout":"","footnotes":""},"categories":[132,241],"tags":[127,163],"class_list":{"0":"post-113754","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-trading-strategies","7":"category-video","8":"tag-scalping","9":"tag-trading-strategies","10":"entry","11":"has-post-thumbnail","12":"override","13":"shadow"},"featured_image_src":null,"author_info":{"display_name":"BTC Admin","author_link":"https:\/\/www.brookstradingcourse.com\/es\/author\/richardhk\/"},"_links":{"self":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/113754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/comments?post=113754"}],"version-history":[{"count":0,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/posts\/113754\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/media?parent=113754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/categories?post=113754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.brookstradingcourse.com\/es\/wp-json\/wp\/v2\/tags?post=113754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}