In this video, I m going to show you a simple scalping strategy that works perfect for the
1 minute time frame.
It uses a special indicator called the Williams Fractals indicator and we are going to combine
it with some other indicators to make it that much more effective.
It s easy to use, works in almost all markets, and most importantly it works.
Let s dive straight into it.
First things first, get on trading view or whatever trading chart platform you use.
Right now I have my time frame set to 1 minute, but this strategy will work for all time frames.
Let s add the Williams fractals indicator first.
To do that, go the indicators tab . Type in Williams fractals . And its going to be this
one right here.
The default settings will work perfect, just make sure the period is set to 2, and for
the colors, it originally red then green, but I flipped them to green then red, so its
easier to understand when reading the chart.
Next, we are going to add some moving averages.
Go back to the indicators tab, and type in three moving averages , It should be this
one by advent trading.
Once you have that added, we are going to change the settings up a bit.
Go into the settings of the indicator.
Change length 1 to 20, Length 2 to 50, and length 3 to 100.
Then for simplicity sake I m going to change the colors of the lines to green, yellow,
and red, in that order.
Now that we have the indicators added let s go on to how the strategy actually works.
The first rule of this strategy is you can only go long if the the 20 day (the green
line) is above the 50 day (the yellow line).
And the 50 day, is above the 100 day.
If they are crossing each other like this, then you should not enter the trade.
So just to be clear, the lines should look like this if you are entering a trade.
It s the complete opposite for a short trade, so the 200 should be on top, the 50 in the
middle, and the 20 on the bottom.
Now that we know how the moving averages should look, lets move on to know when to enter into
a trade.
To enter a long trade, the price has to pull back under the 20 day moving average, or under
the 50 day moving average.
Then you also have to see a Williams Fractal green arrow.
This will be your entry signal.
Let me show you an example so you can better understand what I m talking about.
So first things first, we made sure the moving averages are in the correct order and they
are not crossing each other.
Then we wait for price to cross under the 20 day moving average.
We keep waiting till the Williams fractals indicator gives us the green arrow for the
go a head to enter the trade.
Once it does we create a long position put the stop loss right below the 50 day, and
the have a 1.5 profit ratio.
As you can see in this example the strategy worked out perfectly and we made money.
If the price keeps moving down before the Williams fractal gives a green arrow, and
crossed the 50 day then gives a green arrow.
Your going to do the same thing and enter the trade here, but this time you are going
to add a stop loss right below the 100 day and still set a 1.5 ratio.
Now, there is a very important rule you must follow for this trading strategy to be profitable.
If the price moves below the 100 day moving average, you do not enter a trade on the green
arrow from the Williams fractal indicator.
So as you can see here the price moves below the 100 day, then the Williams fractal gives
a green arrow, and as you can see the price drops again.
So if the price ever closes below the 100 just disregard the next green arrow.
Because the chance that it will drop even more is a lot higher.
Now let s take an example of a short trade with this strategy.
First, we make sure all of our lines our correct by having the 100 on top, and the 20 on bottom.
The we wait for the price to cross above the 20 day, then wait for a red arrow from the
Williams fractal indicator.
Once we get the signal, we enter the trade here, add a stop loss right above the 50 day,
the set a 1.5 profit ratio.
You should also understand, that you have to trust the strategy.
It may take some time, before the price hits your profit mark.
As you can see here, the trading signals gave us the go ahead to enter the trade, we make
our take profit and stop loss, and the price makes multiple moves in each direction, and
takes a quite a long time to hit our mark.
It s important not to panic sell, as long as you have a stop loss and a take profit
mark, you will be fine.
As an important note you should also realize that you will get a ton of buy signals, especially
if you are trading on the 1 minute time frame.
If you are, it s extremely important you make sure that your broker or exchange has low
fees, otherwise the fees will ruin the gains because of the volume of trades you are taking.
I just shows you a winning strategy using moving averages and the Williams fractal indicator.
All I ask in return is if you take 2 seconds out of your day and like this video.
If you want to see one of my top favorite strategies I use on a daily basis, check out
this video, and ill see you guys next time.