The support forum is built with (1) General and FAQ forums for common trading queries received from aspiring and experienced traders, and (2) forums for course video topics. How to Trade Price Action and How to Trade Forex Price Action videos are consolidated into common forums.
Brooks Trading Course social media communities
Brooks Trading Course Learning Resources >>>
I go by these numbers: If the scalp of the average daily range on the 5 minute chart is 25% of a swing on the 5 minute chart, then a scalp on the 1 hr chart would be 12X 1% of the average daily range. Anyone else do the same?
I don't do it that way, but that's an interesting way of going about it. Minimum scalps for me are half the size of an average bar. This would accommodate for changes in volatility faster than going based on average daily range.
How many bars do you typically use to get an average?
I look at the size of the biggest and smallest bars on the chart I'm looking at to get a general sense of things. Like today, if the largest is around 25 points in the ES and the smallest is around 8 points, I wouldn't take a scalp smaller than 4 points. But if the most recent bars are closer to 25 points, then that minimum scalp size would get closer to 10-12 points. So it's a mix of the overall chart plus the most recent bars that I'm considering. It's not exact, but, as you know, the point is to accommodate the targets based on the current market conditions so that the size of the target relative to the risk of the trade is reasonable. Change the position sizing based on these parameters too.
