T-REX Journal - "Scalping 101"

This is just funny.

Most people reading this thread know why, but for the few people who do not, well - take my word for it, this is just FUNNY.

 

O.K. you should have had "plenty" of opportunity to profit today.



Today's Trading Plan

(A.) 1st target entry: was not triggered.

(B.) BreakOut: @ 1126.50 WAS triggered!



Today's SCALP METHOD (w/out Trading Plan)

(C.) There were "6" 2 Bar Charlie set-ups on your 5min ES chart today that you should have keyed in on:

1. 10:20am,
2. 11:10am,
3. 12:10am,
4. 1:15pm,
5. 2:20pm,
6. 2:50pm,

Even without me calling them out to you , you should have been able to spot them with the 2BC SCALP METHOD.


Good trading.

T-REX

 

(C.) There were "6" 2 Bar Charlie set-ups on your 5min ES chart today that you should have keyed in on:

1. 10:20am,
2. 11:10am,
3. 12:10am,
4. 1:15pm,
5. 2:20pm,
6. 2:50pm,



Yep, T-Rex is totally correct for the 2BC times to scalp for profits. Even with my 20min delayed data on a 5min chart, I saw them coming like locust on the tundra. As Jim Rogers would say - you just have to walk over to the corner and pick up the money.(in this case they might bite back a little...)

Do you have the trading plan for tomorrow T-Rex?

 

No not yet but I'm working on it.

 

Hi! So the system is; short if 5 min bar cross below 40 bar ema? Long opposite..

And you have predetermined profit targets and stops?

Will such stops and targets work when the markets volatility changes?

Thanks

 

>Will such stops and targets work when the
>markets volatility changes?

Oh, give me a break! Of course they will

JB

 

Yes. the intraday trend is pre-determined by the 60min bar crossing above the 40EMA. You use the 5min bar crossing the 40EMA to time entries. It's just that simple!

If the trend is up, then you look for buying opportunities near the 40EMA.

If the trend is down, then you look for selling opportunities near the 40EMA.

The 2 Bar Charlie SCALP METHOD works in ALL mkt's and ALL mkt conditions.

Thank you

T-REX

 

How do you know when to exit, and where to take profits?

 

Please go back and read the 2BC set-up for the rules.
I posted them at the beginning of this journal.



2 Bar Charlie System (Screen & Chart set-up)


Tools.

*Use the EOD Swing Vix Indicator.
(Not a necessary component but is very helpful).
*Mark yesterday's High & Low.
*Use the 60min Candlestick chart to find current intra-day trend.
*Use the 5min &/or 1min Candlestick chart to time entry point.


Technical Indicators.

Use a 40-bar EMA.
Use a Stochastic Line Chart (14,3,3 time periods)
Use a MACD Histogram Line Chart (5,40,5 time periods)


Chart Rules.

When the 5 min bar crosses above the 40-bar MA = buy.
When the 5 min bar crosses below the 40-bar MA = sell.


Filters. (Are not necessary but are useful)

(1.) Wait for the low of the 60 min bar
to close above the 40-bar MA = buy.

(2.) Wait for the high of the 60 min bar
to close below the 40-bar MA = sell.



Trade Set ups of the 2 Bar Charlie System

*"Momentum-NEUTRAL" ENTRY Days: Consolidated intra-day plays. These days are more common after a significant rally or sell-off they appear during a brief period of consolidation within the trend. Watch & Wait for the pullback toward Intra-Day SUPPORT/RESISTANCE to be confirmed before placing the buy/sell order especially if the days close is above today's price trigger. See *Trade Entry Rules.

*"BREAK-OUT" ENTRY Days: These days are less common but have a very high accuracy rate and are major trade signals. These types of breakouts tend to be very powerful moves and are typical within the current market trend. Usually, they occur while in a brief consolidation within the current trend after a strong move (but not always). See *Trade Entry Rules.

*"TRENDING" ENTRY Days: These are days were the market is expected to rally after a pullback. See *Trade Entry Rules.TRADE ENTRY RULES: Wait until after 9:30am EST before trade entry. Cancel order if not filled by 11:30am EST. NOTE: In a Bullish 40-Day Trend Do Not place the buy stop-limit order if after the open the market is trading above Intra-Day Resistance and or yesterday's High. In a Bearish 40-Day Trend Do Not place the sell stop-limit order if after the open the market is trading below Intra-day Support and or yesterday's Low. Refer to the intra-day 60-min & 5-min charts for a possible reversal of trend signal before placing the trade. The system is on the sidelines unless the entry point is triggered.

*Profit Target: = 1.25 - 3 points. The profit target is to be used as a guide to either move your stop-loss to breakeven or take profit in uncertain market conditions. You may also use the profit target as a working limit order if you don't have the time to watch the market and would like to take quick profits.

*Stoploss is based on the individuals risk tolerance.
Here is a suggestion (for ES only).
1.25 - 3.00 pts on 1min & 5min bars
7.25+ on swing trades on daily bars.


*Trade Entry RULES:

(Watch & Wait for support/resistance to be confirmed before entry. On occasion you may have to actually enter on the "BreakOut" or "Resistance/Support" triggers if Support/Resistance is confirmed but either the 1st or 2nd trades are not triggered.

(NOTE: ALWAYS trade in the direction of the BIAS/TREND.
If 1st Trade is triggered then use 2nd Trade as a profit target and/or Stop&Reverse.

NOTE: If prices collapse below the “Intra-Day SUPPORT” then use this level to catch the reversal on the “long” side. Likewise if prices rally above the “Intra-Day RESISTANCE then use this level to catch the reversal on the “short” side.




...........the 2BC SCALP METHOD in a nutshell.




Thank you

T-REX

 

this is recent 60min chart with 40EMA
notice how easy to spot intraday reversal.