Einstein Line - Learning to Scalp

[Jhx]

So in an attempt to learn to scalp I'm going to follow TRO's advice from his last vid using the Einstein line on the M1.

I'll trade the GU every day for a couple of hours during the morning. (1 Hour Prior to the US Session (London) + US Session)

Go long at the long trigger, go short at the short trigger (zone is about 1.5x spread~). Place my stops. See what I can take. No other indicators and no additional stats will be added to the mix for now. The multimeter is just there to review things later on.

"You just learn to trade, to take profit. Practicing your exits. It's simple stuff. You gotta get it down. You gotta forget about all that other fancy stuff and just get in the habit of entering when you're supposed to, setting your stop loss, taking profit when you can, wash, rinse, repeat. It's trading. It's really not that difficult."

[Jhx]

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Trade 1:
Entered short at the trigger. Price stalled for a little bit before deciding to push through. Didn't want to cut the trade earlier here, reason being if I wanted to re-enter I'd just be paying the spread again because it was stalling around the entry. Price then starting pushing down, making lower lows, there was a green candle with a small wick. 3 candles later price pushed to that green candle's high and got pushed back down really fast, so I decided to stay in the trade. Had price closed above that then I'd be looking to exit at a better price.

After that rejection it went on for a good 5 pips in 2 minutes, and then price started retracing. At this point I was about 6~7 pips into profit, and looking at previous swings in the M1 chart is not like I'm going to get a 20 pip move without a retracement, so better to exit before that happens. So there's a small push going up before I exit in the next candle, expecting for the M1 range to give me a better price. I do so and net 7.1 pips.

[Jhx]

I guess this is what I was talking about regarding the retracement and why I exited. Price usually doesn't move 25 pips in a straight line.

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[Jhx]

So just to see if the hours that I want to trade give me some opportunities I decided to plot my zone by hand throughout this month. I might be able to grab at least something during these hours.

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[TheRumpledOne]

Make sure you know where price is in relation to daily/weekly/monthly open and previous day/week/month high/low.

On your charts, what were the daily/weekly/monthly candle colors? This would determine your bias and how strong it is.

[Jhx]

Make sure you know where price is in relation to daily/weekly/monthly open and previous day/week/month high/low.

On your charts, what were the daily/weekly/monthly candle colors? This would determine your bias and how strong it is.

Weekly opens are white, daily opens are magenta. My zones are the blue rectangles.

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I see that trading away from the weekly opens (going with the weekly candle color) looks like a good rule of thumb. The weekly looks stronger than the daily. But even better if the weekly and daily match.

[BambinoFlex]

So in an attempt to learn to scalp I'm going to follow TRO's advice from his last vid using the Einstein line on the M1.

I'll trade the GU every day for a couple of hours during the morning. (1 Hour Prior to the US Session (London) + US Session)

Go long at the long trigger, go short at the short trigger (zone is about 1.5x spread~). Place my stops. See what I can take. No other indicators and no additional stats will be added to the mix for now. The multimeter is just there to review things later on.

"You just learn to trade, to take profit. Practicing your exits. It's simple stuff. You gotta get it down. You gotta forget about all that other fancy stuff and just get in the habit of entering when you're supposed to, setting your stop loss, taking profit when you can, wash, rinse, repeat. It's trading. It's really not that difficult."

Wish you the best Jhx! I commend you for taking this step in bettering yourself. A definite motivator in discipline.

[Jhx]

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[Jhx]

Price is still doing it's thing down there, so meanwhile I was looking at the zone in my chart to see some things. I tried putting myself in the mud.

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Yes, price could then go my way but if I don't use something for cutting those losers early I'd find myself closing at the "emergency" stop which is less than ideal. Of course all of this is just observation but I'd rather be prepared.

[Jhx]

When I'm scalping, scratching trades is much tougher because it has a higher impact in my stops (it's a higher % of my total stop, not about position size but the amount that it needs to move). Re-entries and scratching too often might be my worries right now.

Using common sense, a re-entry just after scratching a trade is stupid otherwise I wouldn't have scratched it in the first place and I'd still be in the trade. But a re-entry might be okay if it either made a move away from the zone to the other side, or if I managed to exit with a profit. I've always looked at these zones as a "keep punching until it gives", and it can work if I cut the losers when I have to. Price will eventually range.