Trendline breakout candle close with STOCH. works very nice on 15min & above timeframe , I usually trade on daily charts so only once a day for 30 min.- 1hr.I need to watch the DAILY CANDLE when the previous day candle closes , also it enables to enter mkt.at the beginning of a rally generating massive pips , but the most imp.part is the Trendline breakout with closing of the previous candle.This filtration false signals of STOCH.with price-action.GOD BLESS U.
Scalping is a trading strategy geared towards profiting from minor price changes in a stock's price. Traders who implement this strategy place anywhere from 10 to a few hundred trades in a single day with the belief that small moves in stock price are easier to catch than large ones; traders who implement this strategy are known as scalpers. Many small profits can easily compound into large gains, if a strict exit strategy is used to prevent large losses.
Futures are a contract that match up a buyer and seller at a specific price, with the buyer agreeing to pay that price for the asset when the contract expires in the future. The seller is agreeing to deliver the asset, like oil for example, to the buyer when the contract expires. Day traders are never required to deliver or pay for the actual asset, because all positions are opened and closed within the day (no open obligations). Profits are losses are based on the prices the contract is opened and closed at.
Whether you are scalping EUR: USD, other currency pairs, or other assets outside of forex, it’s important to pay attention to the details. Scalping typically occurs in 5-20 minute increments. However, if you were trying to implement a one-minute scalping strategy, volume indicators, M5/M15 time charts, and price action trends should be the first things you look at.

Article copyright 2011 by Alex Elder. Reprinted and adapted from Come Into My Trading Room with permission from John Wiley & Sons, Inc. The statements and opinions expressed in this article are those of the author. Fidelity Investments® cannot guarantee the accuracy or completeness of any statements or data. This reprint and the materials delivered with it should not be construed as an offer to sell or a solicitation of an offer to buy shares of any funds mentioned in this reprint.
The key to scalping while using short time frames is to identify price changes before the rest of the market has had the chance to act. You should also be willing to accept very low profit margins—gaining less than 1% on a given action will still usually be in your best interest. Because of this, many scalpers may implement tight stop-loss and stop-limit orders over time.  
Day trading requires more money than just a deposit, though. Get setup with a good computer, one or two monitors, a trading platform and data feeds. With many brokers the data feeds for various markets cost money, so pick a market and stick with it. There is no reason to pay for data feeds you won't be using. Also, a consistent income isn't likely during the first six months to a year, so save up for living expenses if attempting to day trade as a primary income stream.
Whether you are scalping EUR: USD, other currency pairs, or other assets outside of forex, it’s important to pay attention to the details. Scalping typically occurs in 5-20 minute increments. However, if you were trying to implement a one-minute scalping strategy, volume indicators, M5/M15 time charts, and price action trends should be the first things you look at.
In March 2000, this bubble burst, and a large number of less-experienced day traders began to lose money as fast, or faster, than they had made during the buying frenzy. The NASDAQ crashed from 5000 back to 1200; many of the less-experienced traders went broke, although obviously it was possible to have made a fortune during that time by short selling or playing on volatility.[9][10]

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Take profits near the upper channel line. If the market is strong, you can wait for the channel line to be hit. If it's weak, grab your first profit while it's still there. What if a strong swing overshoots the channel line? An experienced trader may shift his tactics and hold a little longer, perhaps until the day when the market fails to make a new high. A beginning trader is better advised to take profits after the channel line has been hit as it's important to learn to take profits in accordance with one's trading plan.
Retail investors are prone to psychological biases that make day trading difficult. They tend to sell winners too early and hold losers too long, what some call “picking the flowers and watering the weeds.” That’s easy to do when you get a shot of adrenaline for closing out a profitable trade. Investors engage in myopic loss aversion, which renders them too afraid to buy when a stock declines because they fear it might fall further.

The first EMA (50) should be positioned below the second EMA (100). As with the buy entry points, we wait until the price returns to the EMAs. Additionally, the Stochastic Oscillator is utilised to cross over the 80 level from above. As soon as all the items are in place, you may open a short or sell order without any hesitation. The exact same things occur here. Stop-losses are positioned near 2-3 pips above the last high point of the swing accordingly, and take-profits should remain within 8-12 pips from the entry price.


The difference between the profit target and the entry point is the approximate reward of the trade. The difference between the entry point and the stop out point is the approximate risk.When determining whether it’s worthwhile to enter a swing trade, consider using two-to-one as a minimum reward-to-risk ratio. Your potential profit should be at least twice as much as your potential loss. If the ratio is higher than that, the trade is considered better; if it’s lower it’s worse.
Ultimately, each swing trader devises a plan and strategy that gives them an edge over many trades. This involves looking for trade setups that tend to lead to predictable movements in the asset's price. This isn't easy, and no strategy or setup works every time. With a favorable risk/reward, winning every time isn't required. The more favorable the risk/reward of a trading strategy, the fewer times it needs to win in order to produce an overall profit over many trades.
This combination of factors has made day trading in stocks and stock derivatives (such as ETFs) possible. The low commission rates allow an individual or small firm to make a large number of trades during a single day. The liquidity and small spreads provided by ECNs allow an individual to make near-instantaneous trades and to get favorable pricing.
Foreign exchange (Forex) products and services are offered to self-directed investors through Ally Invest Forex LLC. NFA Member (ID #0408077), who acts as an introducing broker to GAIN Capital Group, LLC ("GAIN Capital"), a registered FCM/RFED and NFA Member (ID #0339826). Forex accounts are held and maintained at GAIN Capital. Forex accounts are NOT PROTECTED by the SIPC. View all Forex disclosures
Margin account – This type account allows you to borrow money from your broker. This will enable you to bolster your potential profits, but also comes with the risk of greater losses and rules to follow. If you want to start day trading with no minimum this isn’t the option for you. Most brokerage firms will insist you lay down a minimum investment before you can start trading on margin. You can also experience a margin call, where your broker demands a greater deposit to cover potential losses.
The difference between the profit target and the entry point is the approximate reward of the trade. The difference between the entry point and the stop out point is the approximate risk.When determining whether it’s worthwhile to enter a swing trade, consider using two-to-one as a minimum reward-to-risk ratio. Your potential profit should be at least twice as much as your potential loss. If the ratio is higher than that, the trade is considered better; if it’s lower it’s worse.
The sheer volume of forex trading makes it attractive for day traders. There are multiple short-term opportunities in a trending currency pair, and an unrivalled level of liquidity to ensure opening and closing trades is quick and slick. More suited to technical analysis, there are other ways to trade foreign exchange. In addition, forex has no central market. This means traders can make trades six days a week, 24 hours a day. They present a great starting point for entry level or aspiring traders with full time jobs. Traders in Australia might be specifically interested in trading the AUD USD pair.
The following are several basic trading strategies by which day traders attempt to make profits. In addition, some day traders also use contrarian investing strategies (more commonly seen in algorithmic trading) to trade specifically against irrational behavior from day traders using the approaches below. It is important for a trader to remain flexible and adjust techniques to match changing market conditions.[11]
The basic strategy of news playing is to buy a stock which has just announced good news, or short sell on bad news. Such events provide enormous volatility in a stock and therefore the greatest chance for quick profits (or losses). Determining whether news is "good" or "bad" must be determined by the price action of the stock, because the market reaction may not match the tone of the news itself. This is because rumors or estimates of the event (like those issued by market and industry analysts) will already have been circulated before the official release, causing prices to move in anticipation. The price movement caused by the official news will therefore be determined by how good the news is relative to the market's expectations, not how good it is in absolute terms.

The price movements of any stock are posted throughout the trading day and summarized at the end of the trading day. For example, April 2, 2019, shares of Apple Inc. (AAPL) opened at $191.09 and closed at $194.02. During the day, as indicated in the "day's range" listed to the right of the closing price, shares dropped as low as $191.05—the intraday low—and hit a peak of $194.46—the intraday high.


Futures are a contract that match up a buyer and seller at a specific price, with the buyer agreeing to pay that price for the asset when the contract expires in the future. The seller is agreeing to deliver the asset, like oil for example, to the buyer when the contract expires. Day traders are never required to deliver or pay for the actual asset, because all positions are opened and closed within the day (no open obligations). Profits are losses are based on the prices the contract is opened and closed at.
So, swing traders are not looking to hit the home run with a single trade – they are not concerned with the perfect time to buy a stock exactly at its bottom and sell exactly at its top (or vice versa). In a perfect trading environment, they wait for the stock to hit its baseline and confirm its direction before they make their moves. The story gets more complicated when a stronger uptrend or downtrend is at play: the trader may paradoxically go long when the stock dips below its EMA and wait for the stock to go back up in an uptrend, or he or she may short a stock that has stabbed above the EMA and wait for it to drop if the longer trend is down.
Simple Scalping Strategy could be a powerful 1-minute scalping system as well and if you try in on the time frame let us know your results! We could use the best scalping strategy indicator (volume) and have a whole basket of strategies to use with it. The reason is that it can confirm a trend, a can confirm a reversal, and it can show us when there is less interest between buyers and sellers.
For most students, once his or her accuracy has improved the next step is increasing positions sizes to maximize profits. If you’ve been trading at 65% success with 1:1 or 2:1 profit loss ratios for at least a couple of months you should be starting to feel pretty confident. Now it’s time to increase your position sizes. Since you’ve been working with a $100 max loss, you’ve probably rarely exceeded 2000 shares.
Each type of trading has its advantages and disadvantages. The appeal of swing trading is that it provides plenty of opportunities to trade; the dollar risk per trade is lower than with trend trading because of closer stops; it provides greater profit opportunity per trade than day trading; and quick rewards provide emotional satisfaction. The downside of swing trading is that you must work hard all the time to manage trades; you are quite likely to miss major moves where huge profits can be made; and frequent trading results in higher commission costs.
Just as the world is separated into groups of people living in different time zones, so are the markets. If you start trading on the Cac 40 at 11:00 ET, you might find you’ve missed the best entry signals of the day already, minimising your potential end of day profit. So, if you want to be at the top, you may have to seriously adjust your working hours.

Identify a stock or ETF where the weekly trend is up and the bottoms on the daily bar chart tend to be short and sharp. Analyze how the stock or ETF has behaved since the beginning of the trend. If it has returned to the moving average 3 times and penetrated it by an average of 1.5% of its price, place a buy order approximately 1% of the instrument's price below the moving average, a little more shallow than the previous declines.
By aggressively trading on margin he can produce 5% daily profits on the 100k buying power he will grow their 25k cash at the rate of 20% per day. The risk of course is that he will make a mistake that will cost him everything. Unfortunately, this is the fate of 9 out of 10 traders. The cause of these career ending mistakes is a failure to manage risk.
In March 2000, this bubble burst, and a large number of less-experienced day traders began to lose money as fast, or faster, than they had made during the buying frenzy. The NASDAQ crashed from 5000 back to 1200; many of the less-experienced traders went broke, although obviously it was possible to have made a fortune during that time by short selling or playing on volatility.[9][10]
Once again, you should only enter a swing trade after you have evaluated the potential risk and reward.As with bullish swing trades, the entry point would be compared to the stop out and profit target points to analyze the potential rewards and risks of the trade. On a bearish swing trade, the stop out point is the highest price of the recent counter trend. So if the stock rose higher than this price, you would exit the trade to minimize losses. The profit target is the lowest price of the recent downtrend. So if the stock reached this price or lower, you should consider exiting at least some of the position to lock in some gains.
These developments heralded the appearance of "market makers": the NASDAQ equivalent of a NYSE specialist. A market maker has an inventory of stocks to buy and sell, and simultaneously offers to buy and sell the same stock. Obviously, it will offer to sell stock at a higher price than the price at which it offers to buy. This difference is known as the "spread". The market maker is indifferent as to whether the stock goes up or down, it simply tries to constantly buy for less than it sells. A persistent trend in one direction will result in a loss for the market maker, but the strategy is overall positive (otherwise they would exit the business). Today there are about 500 firms who participate as market makers on ECNs, each generally making a market in four to forty different stocks. Without any legal obligations, market makers were free to offer smaller spreads on electronic communication networks than on the NASDAQ. A small investor might have to pay a $0.25 spread (e.g. he might have to pay $10.50 to buy a share of stock but could only get $10.25 for selling it), while an institution would only pay a $0.05 spread (buying at $10.40 and selling at $10.35).
There is a commonly quoted statistic that only about 5 percent of day traders succeed. This is a good approximation. Most people who try day trading will not succeed, yet most of them do not practice everyday for six months to a year either. Time investment and quality practice increase a day traders chances of being in the 5 percent that are successful.
Years ago, when stocks were quoted in fractions, there was a standard spread of 1/16 of a dollar or a "teenie". This spread allowed scalp traders to buy a stock at the bid and immediately sell at the ask. Hence the teenie presented clear entry and exit levels for scalp traders. The scalp trading game took a turn for the worst when the market converted to the decimal system. The decimal system closed the "teenie" often times to within 1 penny for high volume stocks. This overnight shifted the strategy for scalp traders. A scalp trader now had to rely more on their instincts, level II, and the time and sales window.
In March 2000, this bubble burst, and a large number of less-experienced day traders began to lose money as fast, or faster, than they had made during the buying frenzy. The NASDAQ crashed from 5000 back to 1200; many of the less-experienced traders went broke, although obviously it was possible to have made a fortune during that time by short selling or playing on volatility.[9][10]

If the strategy is within your risk limit, then testing begins. Manually go through historical charts to find your entries, noting whether your stop loss or target would have been hit. Paper trade in this way for at least 50 to 100 trades, noting whether the strategy was profitable and if it meets your expectations. If it does, proceed to trading the strategy in a demo account in real time. If it's profitable over the course of two months or more in a simulated environment, proceed with day trading the strategy with real capital. If the strategy isn't profitable, start over.
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