Scalping: 3LZZ DSR

[Jhx]

Heya. Due to schedule changes and whatnot, I'm back to scalping, which is something I've always liked but struggled with. So, back to it. I've got 2-3 hours in the morning (EST-1 time).

I've tried simple line breaks but every wick I see to the left seems like the enemy to me. This results in not knowing when -not- to take the trade. I tried just taking and not taking those trades, but it doesn't seem to have much difference. I do recognize a lack of understanding or interpretation of what's happening on my part.

So, in the spirit of keeping things simple, I'll be using the 3LZZ and DSR lines, which I've found makes me flow a bit better with the movement of price. It's easier for me when a setup looks like crap with the 3LZZ than without it to avoid them, and I can use the wicks I dislike so much as protection (SL) when I enter .

I'll trade GU due to good movement, and 5m instead of 1m to not get crazy.

Every chart is going to look like this. Nothing fancy:

GU_3LZZDSR_07012022_1.png (161.04 KiB) Viewed 5475 times

The general rules are the following:
- Entry is at the candle after the sema, or the candle after that one (if I need price to settle a bit).
- Only trade off 2s or 3s. Avoid 1s.

Trade Management:
- If price is visibly up or visibly down (dropping and dropping) on my chart, then aim for small pips. Exit when it stalls; whether that be half a pip, a pip, 2, 3, or w/e.
- If I can see that price has had similar swings in the current chart, then trail the SL candle by candle using the wicks. If I get a good large candle without wicks, I'll use the midpoint on larger candles or just exit. Sometimes I'll get small wins, sometimes I'll get luckier.
- SL barely over the last sema.

That's it. All of this isn't set in stone, but I need a starting point.

No fancy MM right now. I'll use the same lot size.

The goal is to make this one work.

[Jhx]

Long off a 3. Price dropping like a brick so I'm not looking for any large runs. 3 sema has a small body, large wick.

+1.7

GU_3LZZDSR_07012022_2.png (123.05 KiB) Viewed 5467 times

[Jhx]

I'm waiting for a short entry. Also looking at the SR dots to the left to see if the 3 is around any of those. This is where I might wait for a "wait candle" if price is moving fast, to wait for price to settle and not get burned so fast.

GU_3LZZDSR_07012022_3.png (120.37 KiB) Viewed 5445 times

[Jhx]

So this was the result for the day. It wouldn't have been too bad except for the 2nd loss, but that area is one of the best examples where I'm conflicted in terms of trade direction.

I see the 3 sema to go short, price is going up in these last bars, but I can't ignore the fact that price has been really dropping, specially if I look left. I don't know how I should analyze these scenarios, I feel a bit lost when that happens:

GU_3LZZDSR_07012022_3.png (120.37 KiB) Viewed 5289 times

And price then moved like this.

GU_3LZZDSR_07012022_4.png (176.2 KiB) Viewed 5289 times

I guess price is starting to flip, at least from what I see on this chart, but I don't know if there's a way to find clues that this might happen looking at the chart. There's something I'm probably missing when taking these reversals .

Open to suggestions

[aliassmith]

So this was the result for the day. It wouldn't have been too bad except for the 2nd loss, but that area is one of the best examples where I'm conflicted in terms of trade direction.

I see the 3 sema to go short, price is going up in these last bars, but I can't ignore the fact that price has been really dropping, specially if I look left. I don't know how I should analyze these scenarios, I feel a bit lost when that happens:

GU_3LZZDSR_07012022_3.png

And price then moved like this.

GU_3LZZDSR_07012022_4.png

I guess price is starting to flip, at least from what I see on this chart, but I don't know if there's a way to find clues that this might happen looking at the chart. There's something I'm probably missing when taking these reversals .

Open to suggestions

The 3ball isnt my thing but as for execution I might help.

Look at your entries. From what I see there was always a better entry on a pullback. Better entries can make it easier to get profitable exits.

Look at your exits the profits could of been better and if your entries were better your SL could be smaller.

Try putting a 20 sma on there and only trade with it.

If i get a chance later I'll try to post a chart of what I see there.

[aliassmith]

So this was the result for the day. It wouldn't have been too bad except for the 2nd loss, but that area is one of the best examples where I'm conflicted in terms of trade direction.

I see the 3 sema to go short, price is going up in these last bars, but I can't ignore the fact that price has been really dropping, specially if I look left. I don't know how I should analyze these scenarios, I feel a bit lost when that happens:

GU_3LZZDSR_07012022_3.png

And price then moved like this.

GU_3LZZDSR_07012022_4.png

I guess price is starting to flip, at least from what I see on this chart, but I don't know if there's a way to find clues that this might happen looking at the chart. There's something I'm probably missing when taking these reversals .

Open to suggestions

The first trade I may have took because it was a distance away from the 20 sma. It didn't work!

The second trade I would have been more likely to take because of the Red candle that closed below something. Still only allowed 9 pips SL because entry on retrace.

Third trade similar to previous trade except it's a FVG entry with a 10 pips SL. I would have took a 6+ pips on that.

I just noticed the last trade. You could have entered on a FVG and had a bigger target like 7ish pips.

[aliassmith]

I suggest trading with the 20 sma. It's not a trigger it's a bias.
I have examples in my thread and Lem has examples in his thread.

I prefer to use structures that stay, unlike a 3ball that moves.

[dojirock]

It takes momentum to break momentum. Your losses, momentum had not failed yet.
-2 Momentum candle zline, fail.
-doji

[IgazI]

I suggest trading with the 20 sma. It's not a trigger it's a bias.
I have examples in my thread and Lem has examples in his thread.

I prefer to use structures that stay, unlike a 3ball that moves.

If you plot the 10 triangular then that will be your new favorite MA

10 Triangular vs 20 SMA (green) and 20 EMA (red):

moving.png (130.84 KiB) Viewed 5126 times

[Jhx]

So this was the result for the day. It wouldn't have been too bad except for the 2nd loss, but that area is one of the best examples where I'm conflicted in terms of trade direction.

I see the 3 sema to go short, price is going up in these last bars, but I can't ignore the fact that price has been really dropping, specially if I look left. I don't know how I should analyze these scenarios, I feel a bit lost when that happens:

GU_3LZZDSR_07012022_3.png

And price then moved like this.

GU_3LZZDSR_07012022_4.png

I guess price is starting to flip, at least from what I see on this chart, but I don't know if there's a way to find clues that this might happen looking at the chart. There's something I'm probably missing when taking these reversals .

Open to suggestions

The 3ball isnt my thing but as for execution I might help.

Look at your entries. From what I see there was always a better entry on a pullback. Better entries can make it easier to get profitable exits.

Look at your exits the profits could of been better and if your entries were better your SL could be smaller.

Try putting a 20 sma on there and only trade with it.

If i get a chance later I'll try to post a chart of what I see there.

Wow, thanks for all the detailed replies alias. Your answers popped up some questions:

SMA:
When you talk about putting the 20 SMA and only trading with it, do you mean -only- using the SMA and discarding the 3ball?
Or just using it as a bias (as only short below the SMA, only long above the SMA)?

Entries and pullbacks:
I understand that entering in the pullbacks the SL gets smaller, but given that I'm using an M5, what would be the entry method here to enter on a pullback? A limit order? Or waiting for a candle to close in the opposite direction and jump in at the open on the next one?

I see the entries in the charts you posted, but I don't think I get how you'd enter in some of those. (The FVG I have no clue; I haven't heard of those but I don't know if for now I should stick to other entries I'm familiar with like the rat entry or similar).

Again thanks for all the replies, I appreciate it