Scalping Trading Strategies To Bank Your First $10,000 (Step-By Step Course) | Summary and Q&A

TL;DR

Learn how to scalp the market using price action and smart money concepts, focusing on supply and demand areas, pin bar inside bar combos, engulfing pin bars, view up rejection, inside bar liquidity clear outs, power candles, and tower top/bottom formations.

Key Insights

• 🤑 Scalping strategies involve using price action and smart money concepts to capture minor price movements.
• 🤢 Pin bar inside bar combos, engulfing pin bars, view up rejection, inside bar liquidity clear outs, power candles, and tower top/bottom formations are effective scalping setups.
• 🏛️ Supply and demand zones are preferable over classic support and resistance levels for scalping.
• 🥡 Taking partial profits and using proper trade management is crucial in scalping.
• ✋ Indicators should be used sparingly and stop loss orders should always be used in scalping.
• 🧘 Overtrading, revenge trading, and emotional attachment to positions should be avoided in scalping.

Transcript

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Questions & Answers

Q: What is a pin bar inside bar combo and how can it be used for scalping?

A pin bar is a candlestick with a long wick and a small body, indicating rejection. An inside bar is a two-candle formation with the second candle's range located inside the previous candle's range. This combo can be used to identify potential trade entries near supply or demand zones, capturing price reversals or trending moves.

Q: Why do supply and demand zones work better for scalping than classic support and resistance levels?

Supply and demand zones are areas where there is a lot of liquidity at a particular price, representing accumulation or distribution zones with significant order volumes. These zones offer more reliable trading opportunities for scalpers compared to classic support and resistance levels.

Q: What is a view up rejection and how can it be used for scalping?

View up (v-wop) is a trend indicator. Trading above it shows buyer control, while trading below indicates seller control. A view up rejection occurs when an engulfing pin bar forms near the view up line, indicating a potential trade entry. This setup is effective for scalping as it signals a shift in momentum.

Q: How can inside bar liquidity clear outs be used for scalping?

Inside bar liquidity clear outs occur when price breaks out from an inside bar structure but then quickly snaps back in the opposite direction, trapping small retail traders' stop losses. This creates a vacuum for price to reverse back and continue moving in the opposite direction. Trading this setup in a trending market can be profitable for scalpers.

Q: What are power candles and how can they be traded for scalping?

Power candles are candlesticks with a large body and little to no wick at the top or bottom, indicating strong market sentiment in the direction of the candle. They can be traded for scalping when volume confirms the strong sentiment. The spread of the candle must be larger than surrounding candles, validating its strength.

Q: Why is it important to take partial profits when scalping?

Scalping involves capturing minor price movements, so it's crucial to take partial profits along the way to secure some profits and minimize risk. This strategy helps to ensure that even if the final target is not reached, you've still made some profit and removed your risk.

Q: How can tower top/bottom formations be used for scalping?

Tower top formations occur after an uptrend, with a long bullish candle followed by smaller candlesticks marking a small range, and a large bearish candle completing the pattern. Tower bottom formations are their bearish counterparts. These patterns indicate a slow change in momentum and can be used as reversal patterns for scalping.

Q: What are some general tips for successful scalping?

Minimize the use of indicators and prefer price action and smart money concepts. Avoid marrying a position and always use stop loss orders. Avoid overtrading and revenge trading by taking breaks after a series of losses. Keep position sizes small to manage risk and have a focused mindset when scalping.

Summary & Key Takeaways

• Scalping involves trading supply and demand areas in combination with pin bar inside bar combos to capture potential tops and bottoms in price movements.

• Engulfing pin bars with view up rejection can be powerful scalping setups in trending markets.

• Inside bar liquidity clear outs occur when price initially breaks out from an inside bar structure but then snaps back, indicating a false breakout. These can be strong scalping signals.

• Tower top/bottom formations indicate a change in momentum from bullish to bearish or vice versa. They can be effective reversal patterns.