Search result for:  minimum scalp

Thank you so much for this reply man. I literally saved a screenshot of it because it addresses a number of issues i tend to have.

... behaviors that the market shows when it is breaking out(15D signs of strong BO).-> Al shortens it and defined a BO, that consist most of the behaviors from that list from video 15D.-> says that it is a BO when market forms a big trend bar, 2 medium bars, 3-5 small bars. I understand that the minimum scalp is (average sized bar/2) in that timeframe Or it is 10pips for forex and 1point for e-mini.But for forex and XAUUSD the size of the average bar is less that 20pips(for most of the time), which means that the minimum scalp is not 10pips and would ...

You can’t change only reward besides changing risk or probability. I’ll keep it mind 🙂

"Set to BE+1 if can't achieve scalp in 2 or 3 bars." Is this a 5-point scalp or minimum scalp (half size of average bar) ? Attachment : Screenshot (13748).png In this example, if buying above 24 should we exit below 25, exit below 30, or keep holding? Thank you

I don't know the answer to that question. Divide the average daily range of the Emini S&P 500 futures contract by the minimum scalp size of 5 points and use that ratio to algebraically solve for the minimum scalp size for the other instruments you mentioned.

Hey Lisa, Al Brooks always says, "Beginner's shouldn't scalp". You must be right 80% of the time or be prepared to scale-in to increase probability. My version of scalping is extreme I take about 50-100 trades per day and look mostly at 1–2 minute charts. To be honest I wish I was a swing trader but something about my personality makes me trade mostly as a scalper. I can't bear the boredom of the 5-minute chart and the hesitation and uncertainty of the 5 min bar as it is forming. Even in trends I'm scalping in and out constantly. The best way to learn to scalp is to look at every reasonable bar on the chart and ask yourself the following questions: Could I have made a scalp profit there? (4-5 Points in recent conditions on 5-mins) Was there an opportunity to get breakeven if the trade failed and the entry-bar turned around and against me? Was there an opportunity to get breakeven a bar or two after the entry bar? For example, did price wick to the entry price to let you out B/E before hitting your stop? (it often does - and the breakeven exit is sometimes a credible scalp in the opposite direction) Or would you have taken an immediate loss? When you've gone through this thought process for a few months on hundreds of setups you will begin to get a feel for 'probability' of a scalp, which is an essential input of the traders’ equation. This will only come from experience and chart time. The final component of the equation is what is your Risk/Reward ratio? If the bar is huge and your stop is wide then it’s a massive risk and terrible RR for a scalp. That's not to say its not a good scalp -probability of a scalp profit can be huge with momentum on your side: I regularly take momentum scalps. However, I should point out that traps which get you in a bad trade at the worst possible price are almost always preceded with high momentum and nothing but the painful experience of getting trapped will help you learn the difference and understand the true probability of a momentum move. When you get experienced you'll start fading traps for a scalp. But it all comes down to Risk/Reward/Probability. After going through the above thought process for a few months, start taking some scalps using a tiny position and keep track of your points won/lost. If you're making enough points to justify the effort, then start scalping. Find a timeframe and a style of trading you like, that suits your personality and that you can trade successfully. I do not think the 5-minute chart is sacrosanct. About swing trading: Bear in mind, if you can catch just one 2xRR trade every day... aiming for 2% on the day then you'll be rich a lot faster than you'd think. Patience is the key with swing trading: Sitting on your hands, watching the charts and doing nothing until the opportune moment. Grab 1 or 2 great trades per day. You cannot force trades... You must resist the urge to jump into the market because you're desperate for a trade: we have all done it. If you take no trades today that's fine... the goal is to make money but it’s better to make nothing on the day than to lose money. Losing today could potentially negate a great day tomorrow. Better to make nothing today and make up for it with a great day tomorrow. But swing trading is mostly about waiting. Ideally you want to take a combination of swings and scalps, this will come with time and experience.

... TR, and would consider the highest point of the bull rally as the high of TR and say the low of TR forms when the stop order bulls starts making a minimum scalp. And I'm trading XAUUSD, Should I consider a minimum scalp order filled when the market travels 12pips? If there is a doubt in my question I'm open to explaining it again, your own ways when it comes to finding high and lows of TR can also be shared here.

... used only for scalps. However, in this video, he says that a trader who bought the bull BO, should use the swing stop, regardless if the trader was planning to swing or to scalp: Attachment : image.png In this case, if the trader was planning to scalp, he clearly is risking way more points that he intended to make. Am i right? Al says that the minimum scalp on the E-mini should be 4-8 ticks. In these cases, should the stop also be 4-8 ticks away, or should it be a swing stop, far from the current price? Thank you in advance! Best,

HelloFor the 5tick failure concept, or the minimum point for scalp is 1 point in Emini I'm wondering about XAUUSD/US30, these two instrument,s how many pips refer to minimum scalp size?

Nop. Nop, and minimum size is 1t above whatever is breaking out of. The close is important to know the strength of the BO but not for the fact that it is a breakout. Once it went 1t above whatever is a breakout. Any bar, whatever its shape and color, following a BO is a FT bar. Then the FT can be bad or good. Good is anything else than an opposite trend bar (a doji would be the minimum) so in the examples you have given the FT is good but it varies in strength. The ideal FT for any BO's strength is another strong trend bar. No. All these thing ...

Al says that the minimum scalp on forex is 10 pips. Therefor, the minimum should be that a market should have 10 pips sized bars. This is not the case in EURUSD 5 minute charts. Bars on this chart hardly are larger than 7-8 pips. Knowing this, is it safe to assume EURUSD cannot be traded on the 5 minute chart? Am I misunderstanding something? Thank you for your time.

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?

Al often talks about a traders taking a scalp. What does he use for a reasonable scalp target? I would guess. It depends on the market. Can you give some guidelines?

Hello, How may I know the size of the smallest scalp in markets not cover in this course? For example, stocks. What would be the smallest scalp in a stock? Thanks in advance.

Al said a reason for beginners losing is confusing and therefore mixing scalps with swings. when al says turning a swing trade into a scalp is a losing strategy, he's saying taking a scalp profit when the premise of the swing is still valid is what's wrong. But on the other hand, exiting a swing trade with a scalpers profit is Ok if the premise of the swing becomes invalid as the trade unfolds.   and taking a scalp setup and converting it to a swing stop as the market goes below your scalp stop is incorrect management. But taking a scalp setup and converting at least some of your profit taking to a swing profit if the trade unfolds to where that is reasonable to do, is Ok to do?   - basically, converting scalp entry stop losses to swing stop losses and also converting a swing trade profit target that is still valid at the point of reaching a scalp profit, exiting early at the scalp profit is the incorrect way to manage a swing trade.   Am I understanding this correctly?