Einstein Line - Learning to Scalp

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Jhx
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Re: Einstein Line - Learning to Scalp

Postby Jhx » Wed Nov 27, 2019 6:20 pm

And done for the day. Price rushed with a green candle; it was rather large so I decided to go with 1/3rd of my usual position size in case the range with that volatility took me out. I took the trade and decided to ride it until price stopped going up. Exited at +9.1 pips (+3~ pips at my usual value).

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Then price went down again. Took what I could and that's it.

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LeMercenaire
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Re: Einstein Line - Learning to Scalp

Postby LeMercenaire » Wed Nov 27, 2019 10:46 pm

Jhx wrote: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."


Awesome, awesome...AWESOME!

I had a look (an admittedly very quick look) at The Einstein Line and TBH, I never really got it.

The fact that there was very little solid information out there meant that I just stuck it in the back of the filing cabinet.

So, to see you go for this is very interesting to me and I will be following along with great interest.

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Re: Einstein Line - Learning to Scalp

Postby LeMercenaire » Wed Nov 27, 2019 10:49 pm

Jhx wrote:
TheRumpledOne wrote: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.

GU-Opens-11-2019.png
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.


That's what I found and why I trade The Buy Zone away from the Weekly Open.

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Re: Einstein Line - Learning to Scalp

Postby Jhx » Thu Nov 28, 2019 1:00 pm

Looking for Longs, so just waiting for now.

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Is it necessary to look at the bigger picture to see where I'm at when scalping? Or would that only matter if I'm going for a larger move? This the same chart (M1) just zoomed out.

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Re: Einstein Line - Learning to Scalp

Postby Jhx » Thu Nov 28, 2019 3:14 pm

Don't want to jump into conclusions just yet but there seems to be scalping opportunities to either side (both today and yesterday). Maybe the bias matters more when trading away from extremes or going for bigger moves?

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Just waiting for now.

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Re: Einstein Line - Learning to Scalp

Postby Jhx » Thu Nov 28, 2019 6:18 pm

No trades for today I guess. Price left the zone to the downside a couple of times (and both tuesday and wednesday price left the zone against the W1 bias for a couple of pips as well). I might take the trigger to either side and manage the trade. If I'm going with the weekly bias I might stay for some more.

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Re: Einstein Line - Learning to Scalp

Postby Jhx » Fri Nov 29, 2019 2:33 pm

So I take the trade at the line (short).
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Instantly goes against me. My goal now is to not let my full SL get hit, so I wait for a chance to exit without that happening. I get some small green candles going up, and then I get a red candle with a body bigger than the last 2. I take that and exit around the Einstein Line at -5.1 (because the Line was at -3 and -2~ for spread). Then price kept going down with a bigger candle, so I jumped in again.
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Since I was at -5 I decided that I wanted to ride this for a while (and therefore would have to be more patient and not go crazy based on one candle), if that failed then I'd try to get out at the zone without letting the trade hit the max SL. I get out at +7. Price has to range eventually.
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So I netted 1~ pip.

Spread.png
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^ That's tough. Something that I'm noticing specially while scalping. Unless I'm instantly right about direction (and by instantly right I mean price going my way at least 1x spread), even scratching is tough when going for a few pips because of spread. Unless the trick is to stick with it and if I scratch some trade/s, be patient enough for price to range and stay along without closing too early.

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Re: Einstein Line - Learning to Scalp

Postby Jhx » Fri Nov 29, 2019 4:16 pm

Got in, reversed, went up, stalled, back down, and at this point I decided that I'd only stay in the trade if I got a move up, if not I'd be looking to exit (possibly) around entry. Got a run and decided to exit at the high and not take any more chances. Going long already looked like being a little late to the party and if I was going for a bigger run I'd have gone long at the high instead of trading towards it. One more for 2.2 pips. Funny thing is that I accidentally clicked on M5 and "refreshed" my Einstein Line, so I had to quickly move it back where it was and I moved it 1 pip higher (so I entered 1 pip late, but it is what it is).

Weekly total (started on Tuesday though, not Monday): 7.1 + 3 -5.1 + 7 + 2.2 = 14.2 net pips

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Re: Einstein Line - Learning to Scalp

Postby TheRumpledOne » Fri Nov 29, 2019 7:39 pm

Are you taking range into account?

Also, what is your step-by-step trading plan? Let's make sure you have all that you need.
IT'S NOT WHAT YOU TRADE, IT'S HOW YOU TRADE IT!

Please do NOT PM me with trading or coding questions, post them in a thread.

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Re: Einstein Line - Learning to Scalp

Postby Jhx » Fri Nov 29, 2019 10:42 pm

I'm looking at the average daily range for something that makes sense to me. If I add another one I end up getting a conflicting bias (ie: If the daily is green and below the average and the weekly is green and above the average).

I was looking at the charts from this month and I see that with ranges it's not so much about the direction that it might go, instead, it seems to be more about the amount that it might move before going into the other direction. If price is below the average I can scalp either way, but there might be a bigger move towards one direction (and if price is above the average the bigger move might happen in the opposite direction). Of course, as long as I'm willing to wait for that move.

---

I need to write this down so that it makes sense to me. Nothing new and probably common sense.

- Which way is price going now? The way it's crossing the line.

- I'm trading away from a line (the Einstein Line). I place this line at the current price, at the same time every day.

- What chart am I looking at when I'm trading? The M1 chart.

- I'm trading for a couple of hours every day and my trades last minutes between entry and exit.

- Does it make sense to look at monthly ranges if I'm holding a trade for only a couple of minutes? Not really. But I might get some use out of the daily range. Why? Trades usually last minutes (I close the trade when the exit conditions happen), but if I attempt to scalp and those fail (resulting in some smaller losses), I could then look at the daily range and be patient for a bigger move towards one direction. Why not just wait for that move instead? Because a small move (scalp) might be more likely.

---

I'll post my step-by-step trading plan soon (hopefully it's not that bad :lol: )

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