Quick Scalping Trading Strategy -- with David Moadel
hello and welcome to looking at the markets with david modell
today i'm going to show you a very simple scalping strategy you only need
the bollinger bands and an exponential moving average and
really that's it on the one minute candlesticks
chart before i get started i just want to make sure that you're not just
following somebody's training strategy i want you to have
a plan and if you'd like some help putting together a trading or investing
plan i do offer coaching for the coaching you can email me at
david modell gmail.com let's take a look at
tradingview.com i've got the us dollar against the
japanese yen up here with the one minute candlestick chart
all these candles represent one minute of price action
each and you can try this out it doesn't have
to be with currency pairs you could try it out with stocks or
bitcoin or whatever just please be aware this does not work 100
of the time does not work perfectly so there are no guarantees here
i recommend testing it out with demo or virtual trading first
do not commit any real capital or real money to this
test it out first make sure it works before you even consider trying it out
and then if you do choose to try it out with real money use
very small amounts of money and respect your stop losses at all times have an
exit strategy so i've got the bollinger bands up here
as you can see so you got the upper bollinger band line
in green here also in green the lower bollinger band line
and this might look like the midline but it's not because
check it out i removed the midline right that brown line there the 20
period simple moving average that's usually
there for the bollinger bands i went on trading view here and i
clicked on settings for the bollinger bands and i unchecked
the basis line it's gone okay and i replaced it with
something else i replaced it with a nine period ema nine period exponential
moving average okay and that is in blue i made it uh
right there okay so you you only need two things really
bollinger bands and the nine ema on the one minute candlestick
chart you don't have to get rid of the
bollinger bands midline if you don't want to
but it might be a little bit distracting because you'll have two lines
pretty close to each other not exactly the same though
but pretty close and that can get confusing so i like to keep things as
simple as possible whenever possible uh what's the idea here well the idea is
that uh you want the candle you want a one
minute candlestick to close above the nine period ema
okay so let me let me go in a little bit right here
and let me try to make it a little bit easier to see hopefully you can see that
all right it closed i know it's kind of small but this one
closed above the nine ema so you would have
taken a long position you would have bought there
because we're going to go with the trend okay if the candles are below
this blue line the 9 ema then the trend is downward and you
don't want to buy there in fact you might want to sell
and we're going to talk about that you might want to sell whatever you have
okay because then the trend is trending downwards
if it's below the line but once it closes above the line
then you can get in and you ride it until you hit that upper bollinger band
and then you get out of your position you sell
okay this is scalping all right this is not long term and
you're not going for large amounts of money
you're trying to make small amounts of money over and over again
and you're also going to have to accept small losses along the way as well
so you would have bought here sold here that's scalping
quick win all right you don't even have to wait long we're talking about if
these are one minute each you would have bought and then one two
minutes later you would have gotten out for a small gain
okay then you wait until it's below the line again but then pops back above
the line boom there it is okay it's above that
trend line there it's above the nine period ema you would have
gotten in and bam okay five minutes later or so
maybe six minutes later actually right here you would have gotten out
as soon as it hits that upper bollinger band you're out for another scalp trade
okay now again if it's below that ema line you just stay out okay
uh so like like all all here you would have stayed out you would
you would have avoided all this downdraft all this downturn here
okay but then check it out popped above it again and then you sell here you buy
here you sell here now what if it pops above
it but then goes below the line pops above
the 9 ema and then goes below it you just sell
take a small loss and it's probably going to be a really small loss i mean
look you would have bought here and then sold two minutes later for not
much less very small loss there okay make sure you're using a
broker by the way that has very small fees and commissions
okay because this is something you're doing every few minutes as you can see
and uh if the commissions are high you can get eaten up by commissions
and fees you don't want that okay so if there's a you know a free or almost free
broker out there but make sure that you get good uh you
know good uh fills on your trades and that kind of thing uh okay and good
customer service there there are other things to consider not
just the the low fees and commissions but that's a big part of it if you're
going to be a scalper all right so if you have gotten in here
and then as soon as it goes back below if it goes back below
then you just get out wait for the next opportunity which came
literally a minute later and then you would have done pretty well with that
okay so after it pops above one of two things will happen
it'll either go back below the blue line and you get out for a small loss
hopefully okay now no no guarantees there's no
guarantee it's going to be a small loss it could be a big loss because who knows
maybe the next candle would have gapped down way down here
okay all right it's always possible a big gap down you never know
and you might end up getting out you know buying here and getting out way
down there so there's always the possibility of a big
loss okay but on the one-minute candlestick chart
usually not always usually the the candles are pretty
connected to each other you don't see a whole like look at this do you see any
really big gaps do you see a big space between the two
any two candles not really they're all pretty continuous
you can get a big red candle sure okay that's possible
uh but you're probably gonna get out without any really big gaps usually most
of the time not always if you use one minute candles all right
so this is a pretty good example you would have bought here sold here
no big deal small loss right you made it up very soon afterwards with a nice gain
okay went below you would have avoided all this downturn here you wouldn't even
be in there because it's below that trend line that that ema the 9 ema
you'd have avoided all this and wait until it closes above it did it
close above it here it's not really clear definitely closed
above it here you would have gone in here
and look what happened boom right up up up and there's a wick on this one
uh but let's say you know if you're really paying attention you can get out
during the wick you don't have to wait until it closes above
you could just wait until the price is touching that top end and you get the
heck out because this is scalping you're not in this for
the long haul okay and you would have had
nice nice gain there okay so that's the idea here all right be
aware there might be big downturns from time to time it's going
to happen but most of the time uh your losses are
probably going to be small and so that's the beauty of this
but you have to be prepared to take a lot of
small losses and hopefully bigger gains what i like about this
mostly is that you're avoiding the big downturns not always but
often times all right i hope this was helpful to you
just a quick scalping strategy you only need two things to do it bollinger bands
and the trend line with the ema all right
but have a trading plan have an investing plan you don't
want to do something just because somebody in a video told you about a
strategy you want to have an overall plan i do assist people with that
if you want coaching for that my email address is davidmodel
gmail.com i want to thank you for watching and listening i will talk to
you again soon
you