PROFITABLE Scalping Strategy (Step-by-step guide):
This is one of the best sculpting strategies that you can use without any indicators we are only going to be using pure price action and market structure so in this Article I’m going to be breaking this entire scalping strategy down from the beginning till the end so please do not skip through anything if you want to master this strategy so for this scouting strategy.
I’m going to be using the five-minute timeframe to enter the trade so the first thing before you do anything is that you want to identify the trend direction so what I’ll do is go to the one-hour time frame to find out.
What’s the momentum of the market to find out the overall trend direction is the market going up or is it going down or is it going sideways guys make sure that you are just focusing on what price is doing right.
Now you do not want to be looking at price up here because it’s irrelevant you know I mean like it’s irrelevant like because we are scalping we are only going to be using a five-minute time frame to look for our entry there is no point of like going back to 2008 to look at what price is doing you know just focus on what price is doing right now.
Which is right here right now you can see that price is in the downtrend because the price has been making your lower highs and lower lows and low highs and lower lows you can see that price has just been going down and then now you just made this major retracement and that’s the first sign right that’s the first line they tell us that price is in the downtrend the second sign is that if you zoom in right here you can see that price has just broken through the last higher low which is right here.
So this is a break of structure remember market structure so if the market has just broken the previous higher low I’m expecting the price to come back up to re-test this level and then shoot back down just like this so right now I’m going enter the five-minute time.
Frame to look for my entries so right now all you need to do is to wait for the price to come back up to retest this level and then enter for the trade basically you want to go to the one-hour time frame to identify your trend.
Right here you can see two so this is our take profit so this is the one is two-risk-to-drop ratio so if you are risking 100 if you win this trade you’re going to be making 200 so let’s take a look at how this trade plays out and you can see right here price went down and smashed our take profit right here boys so after.
How this strategy works
You have smashed or taken profit just continue doing the same thing Just out your trend line 2 or your line 2 and just mark the previous lows and highs so right now price has not given us any valid highs and lows yet so we still do not do anything so if you go to the one-hour time frame you can see that price is going to be approaching the low right here this is the very strong
support area right here you can see whenever the price comes back down here it always bounces back up come back down bounce back up three times so now we are expecting the price to come back down to this support area because it’s irrelevant and right now we are just looking at the price in this range right here so right now.
I’m waiting for the price to come back down to this area to show me some sort of confirmation to see what the price is going to do next so we still wait and you can see right here price has gone back all the way down to this area right here and you can see it just starts consolidating at this area so in this
Example: I’ll go to the five-minute timeframe to see like any break of structure or anything so once you go to the five-minute timeframe you can see that price has just broken the key level that we have drawn on our one-hour time frame and just came back up here so in this case what it can do is that you
Can draw another higher low right here can mark up this high right here and you can see the price has just broken the last high the previous high and then come back down to re-test it right so the moment it comes back down to re-test this area we are waiting for some sort of confirmation for us to enter for the trade.
As you can see in this case prices gave us multiple long low weak candles right here you can see multiple long lower weak candles and it gave us a bullish engulfing candlestick right here which shows us that the price is going to reverse and it’s going to head back up so I will enter for a buy right here when I see this bullish engulfing candlestick Place my stop-loss below it and then place my take profit at two times my stop-loss which is up here two times my stop-loss and let’s look at all this straight play out smash your take profit this is our second win.