EASY Scalping Strategy with NO Indicator! ONLY Price Action! [Nobody Knows This NEW Strategy]

Summary

In this video, a scalping strategy is taught based on price action without any indicators, focusing on the 1-minute timeframe. Traders are guided to identify support and resistance levels from a 5-minute chart to draw boxes around price movements. Entry points for long and short positions are determined when these boxes are broken, with a recommended risk-to-reward ratio of 1.5. The importance of strict risk management, including a 1% risk strategy, is emphasized for successful trading. Viewers are encouraged to apply these techniques while maintaining focus on price action to enhance their trading success.

Takeaways

• 😀 This scalping strategy focuses on price action with no indicators, making it simple and direct.
• 📉 Trades are entered on a 1-minute time frame based on support and resistance levels established on a 5-minute time frame.
• 📦 A box is drawn from the highest high to the lowest low of five 1-minute candles to identify potential breakout points.
• 🚀 Enter a long position when the price breaks above the box and a short position when it breaks below.
• 🔒 Set the stop loss below the low of the breakout candle for long positions and above the high for short positions.
• 🎯 The profit target should be set at a 1.5 risk-to-reward ratio to ensure a favorable outcome.
• 🛑 During open positions, do not count new candles; only start counting again after closing a position.
• 📊 Proper risk management is crucial; limit risk to 1% of your trading account per trade to protect against significant losses.
• 🔄 It is advised not to switch between the 1-minute and 5-minute time frames to maintain focus and clarity in trading.
• 📝 Engaging with the audience, the presenter encourages viewers to ask questions and subscribe for more trading insights.

Q & A

What is the primary focus of the scalping strategy discussed in the video?

The primary focus is on using price action without indicators, specifically trading on the 1-minute time frame while monitoring support and resistance levels on the 5-minute time frame.

How do you determine when to enter a trade in this strategy?

You enter a trade when a support or resistance level on the 5-minute time frame is broken, and a new candle opens on the 1-minute time frame.

What is the significance of the 1-minute and 5-minute time frames?

The 1-minute time frame provides detailed insights into price movements, while the 5-minute time frame helps identify key support and resistance levels.

What is meant by 'drawing a box' in the context of this trading strategy?

Drawing a box involves marking the highest high and lowest low of the last five 1-minute candles to visualize potential support and resistance areas.

What should you do if the previous box is not broken after five candles?

If the box is not broken, you should draw a new box based on the next five candles and continue to monitor for breakouts.

How do you set your stop loss when entering a trade?

For a long position, the stop loss is placed below the low of the breaking candle; for a short position, it is set above the high of the breaking candle.

What is the recommended risk-to-reward ratio for trades in this strategy?

The recommended risk-to-reward ratio is 1.5, meaning you aim to gain 1.5 times what you risk on each trade.

Why is risk management emphasized in this trading strategy?

Risk management is crucial to limit losses and protect your trading capital, ensuring long-term success in scalping.

What is the recommended risk management strategy for this scalping approach?

A 1% risk management strategy is recommended, where you size your positions to ensure that you only lose 1% of your trading account if the stop loss is triggered.

What should traders do after closing a position?

After closing a position, traders should start counting again from the next candle that corresponds to the 5-minute time frame and draw a new box if necessary.