The “ONE CANDLE" Scalping Strategy I Will Use For Life

Summary

In this video, Carl shares his proven 'Quick Flip Scalper' strategy for scalping the first 90 minutes of the market open. The strategy, simple yet effective, involves three steps: boxing the opening range, confirming liquidity candles, and making precise entry points based on reversal candlesticks. Carl demonstrates this method with a live market example, showing how it takes advantage of market manipulation by large institutions. He emphasizes its success over years and offers insights into its application with various assets. Carl also provides a reminder that past performance is not a guarantee of future success.

Takeaways

• 😀 Mastering the first 90 minutes of the market open is crucial for success in trading. This period holds the majority of trading opportunities for most traders.
• 😀 The 'Quick Flip Scalper' strategy is simple, repeatable, and effective. It focuses on identifying key price movements within the first 90 minutes after the market opens.
• 😀 Step 1 of the strategy is to box the opening range candle. This involves using a 15-minute chart to connect the high and low of the first 15-minute candle after the market opens and extending the range into the future.
• 😀 Step 2 is to confirm if the opening candle is a 'liquidity candle,' which typically shows a strong price movement in one direction, often triggered by stop hunts to create liquidity for institutional traders.
• 😀 Liquidity candles are key to the strategy as they help traders identify when the market is being manipulated by larger players, often creating an opportunity for reversal.
• 😀 To confirm whether a candle is a liquidity candle, traders should use the Average True Range (ATR) indicator on a daily chart and check if the candle's range is 25% or more of the ATR of the last 14 days.
• 😀 Step 3 involves making the perfect entry by waiting for a reversal candlestick (either a hammer, inverted hammer, or engulfing candle) outside of the boxed range within 90 minutes of market open.
• 😀 Reversal candles indicate that the price is likely to reverse its direction. For bullish reversals, traders look for hammer or engulfing candles below the boxed range; for bearish reversals, they look for the same patterns above the range.
• 😀 Successful entries are made by breaking the high or low of the reversal candle, with stop losses set accordingly. The target profit can be set at the top or bottom of the boxed range drawn in Step 1.
• 😀 The strategy has a high success rate when applied properly, but like all trading strategies, it carries risks. Traders should evaluate the effectiveness of this edge regularly to ensure it continues to work.
• 😀 While the strategy is effective in many markets, it tends to work best in highly liquid assets, such as individual stocks, and may be less reliable in certain indexes due to their already high liquidity.

Q & A

What is the 'quick flip scalper' strategy?

The 'quick flip scalper' strategy is a trading technique that focuses on the first 90 minutes after the market opens, aiming to take advantage of price movements by identifying 'manipulation' candles and entering trades based on reversal signals.

What is the importance of the first 90 minutes of the market open?

The first 90 minutes are considered crucial because a significant portion of market movements and trading profits occur during this time. This is when most opportunities for scalping arise, making it essential for traders to master this period.

How do you identify the opening range in this strategy?

To identify the opening range, traders use a 15-minute chart and wait for the first 15-minute candle to close. They then draw a box connecting the highest and lowest price points of that candle, extending it into the future.

What makes a candle a 'liquidity candle'?

A liquidity candle is an aggressive price movement (either up or down) that quickly moves in one direction. This movement typically triggers stop-loss orders from retail traders, creating liquidity that large institutions need to enter or exit their positions.

How do you confirm if a candle is a manipulation (liquidity) candle?

To confirm a manipulation candle, traders calculate the Average True Range (ATR) of the asset over the last 14 days. If the candle's range is 25% or more of the ATR, it is considered a liquidity (manipulation) candle.

What is the purpose of using the ATR indicator in this strategy?

The ATR indicator helps determine the typical price range of an asset. By comparing the range of the first 15-minute candle to the ATR, traders can identify whether it is large enough to qualify as a liquidity (manipulation) candle, indicating a potential reversal.

What are the two types of candlesticks to look for in the 'quick flip scalper' strategy?

The two candlestick patterns to look for are the hammer (or inverted hammer) and the engulfing candle (bullish or bearish). These patterns are considered reversal signals that help identify the right entry point for a trade.

Why is timing so critical in the quick flip scalper strategy?

Timing is crucial because traders must enter the trade within 90 minutes of the market opening. If a reversal candle does not appear outside the opening range during this window, the trade opportunity is considered lost for the day.

How do you manage risk when using the quick flip scalper strategy?

Risk management involves setting stop-loss orders at appropriate levels. For example, after entering a trade based on a reversal candle, the stop-loss is placed just outside the low or high of the candle, limiting potential losses while allowing for upside movement.

What is the success rate of the strategy, and how should traders approach it?

The strategy has shown strong results over many years, but its success is not guaranteed. Traders are advised to regularly evaluate the edge of the strategy, as market conditions may change, making it more effective in some markets than in others.