1 minute momentum scalping

check this out

when the market gets a lot of momentum, many times i don't get a quality retrace on the 1M

but what if i use 1M as my main chart and the 30 sec for entries

here are three strong moves and examples with 30 sec charts on the left and 1m on the right

edit:

i want to make sure i make 2 notes about these:

1) the retraces were one or two candles
2) there was no "good" retracement on the 1M, all the same color

there was a slight retrace on the second one but not really something i was willing to trade at the time

so maybe the fact that the 1m candles are unable to show a retrace could be a quality measure of momentum. i would use 5:5 tp:sl any thoughts?

the market has really been droppin some hot shit today!

be sure to check the first post the latest revision is there now. it includes attachments from the previous post

i feel that in order to get away with a 5 SL i have to get in when the market is really cookin

today is saturday, didn't have time yesterday to get this stuff up

my weekly pnl ended at about -$10

i had two trades yesterday, -$5 and +$10

the loser was off of the 1m chart and the winner was my new A trade.

the video is the A trade.

i may be sticking to just the A's, using only a one minute chart is a little bit slow-moving for this method. i'm very excited for next week's trading with my A setup

despite my excitement for the upcoming week, i will be out of town for 2 or 3 trading sessions, but i will trade whenever i can and i will do my best to record all my moves

new home sales in 30 minutes, the only news for today

i was looking for an A trade with the 1M and 30S chart

but price was moving too quickly for even the 30S to retrace

but look at the 30S and 10S

maybe the time frame could be determined by the velocity of the momentum?

edit:
new home sales not unemployment

i have a chiropractor apointment in 30 minutes, still need to shower/eat breakfast/brush teeth before i leave town for a few days

so i'm gonna wait to put a vid together

here's a picture, grabbed 4 pips

i would say this is like a B trade. price didn't break through a level, but it moved away from one

the 30 sec gives much cleaner entries than the 1M

i was 5 pips in profit but my TP wasn't hit so i grabbed 4 before a retrace

hi

i dont quite understand this method. can you explain it in simple terms ?

hey pal

i'll do my best to boil it down:

the US and London markets see the most volume. NY opens at 8am EST, and London closes at 12pm (noon) EST. this time window is going to be extra volatile.

if you open up a 1M chart and watch eur/usd, nearly every day you will see price make a nice strong fast move for one reason or another

our goal is to catch a piece of that motion. this method is designed to identify those moves and give us a high probability entry for a few pips while at the same time allowing us to use a small stop loss

usually you can tell immediately upon entry if price is going to go your way or not, and you don't really need more than a 5 pip SL. i like to close them immediately using my candle color rule to keep my average loss less than 5 pips.

because of the 1:1 risk:reward, we are looking for better than 50% accuracy. i believe that this method is going to have a much better rate than that over time.

remember that a swing trader can get hundreds of pips, but the $ per pip is going to be much lower than ours.

if our SL is 5 pips we can trade at a much much higher $ per pip value.

please let me know if i didn't explain what you were asking

edit:

thought i might add this for the sake of re-phrasing

we have a 1M and a 30sec open

there is a fast move away/through a level

or

price makes a strong move and is moving too quickly for the 1M to show a retrace, but the 30sec shows a nice retrace of a few candles ( for example, several bull candles close on the 1M and price has covered maybe 10 pips and the 30 sec shows a couple small bear canldes, that would be the retrace where you look for the trigger)

also when price is trending strongly you can look for a trigger on the 30 sec, but look for retraces on the 1M. its best to wait for the 30 sec price to retrace above the MAs, then come back down with a strong move that could be classified as an A (from the first post)

please let me know if i have not re-phrased in a way that makes it clear, i would be happy to try again in another way.

i understand if things are a bit confusing if you watch the vids, as my method has been evoliving.
well the market opens in 7 hours so i should go to bed

vacation was cool i might be able to get some pictures to put up. my shoulders are sun burned badly and are slightly blistered, and my biological clock has been altered and i'm not tired at all and its 1Am

ok so i'm finally back from vacation!

i have never been so sunburned. seriously, the skin from my mid-chest all the way up to my neck has peeled off from the worst sun burn i've ever had. i may be able to post an embarrassing picture of it lol.

a new rule of mine is that i'm not allowed to mess around online or making my videos while i'm supposed to be waiting patiently for my setup

but bernanke just started his speech and i thought it would be okay to update the thread.

another new rule: only A trades with this method

no more trying to catch the end of a retrace with this method, i am developing another system for that. the two systems will mesh nicely.

ok so summary: only A trades, and focus on the market 100% during trading hours (this includes getting orders ready early)

weekly pnl: $10

edit:

thought i'd mention the rsi on my chart is for the stuff i'm working for, not needed for this kind of trade

i was just reading a thread and someone who uses renko was discussing a candle color change exit

this individual used to close the trade when the "candle" closed against them, but now they close it as soon as the color changes.

this got me thinking, of all the times i see the color change and sit and wait for it to close like that.. most of the time if the color changes, the candle will close that color.

this would really help with my bottom line and i am going to observe and maybe even try it this week

here is an example of my A trade (now the only trade for this method)

the setup took place at about 8:05. i had only just sat down and simply wasn't ready to take the trade.

i like to watch price for a bit before i jump in. for some reason i just don't feel comfortable taking a trade right when i sit down. i had a little trouble getting out of bed today and yesterday (probably because of my vacation)

regardless i thought i would share this because it was a good example:
5m breaks support, showing strong bearish momentum, re-tests broken support, then gives our trigger

while we're waiting for home sales i'll post another example

i didn't take this trade. i need to work on my psychology i think. here's what happened: i was ready to take a trade and didn't wait for the retrace before the trigger (orange box), i just saw the trigger and took it and got burned. right after that i checked the daily, 3h, 1h, 30m, and 15m trends. all of those time frames showed a strong up trend. when the setup appeared (the one i'm posting in this post) i had just told myself that the trend was up (because of all of the other time frames) and missed this opportunity. none of that is in my strategy

i want to make sure i don't forget the lesson i learned today: wait for the retrace (orange box) to occur before my trigger. each time i'm about to take a trigger i should ask if price just retraced (or broke a level) and is it hidden on the 1M

yesterday i mentioned a change that i wanted to experiment with:

my candle color exit rule usually requires me to wait until the bar has closed to exit. the idea i came across was to exit as soon as the color changed. i should have just observed the new idea. i recorded it but when i saved it i clicked cancel instead of save, i'm really not trying to only post winning trades (the video will have one nice loss on it so far--the one i didn't wait for the retrace)

i tried that with this trade and it was no good

today has easily been one of my most frustrating days trading because my setup is everywhere and my only obstacle is myself.

today has seen me doing two things that have been hurting myself:

1) i've not been patient
2) i've not been following my own rules

i may be calling it quits for the day we will see. i will only take an A+++ trade if i take another at all.

here is an example of the 5m trend filter saving me from some pain


i have been considering for a long time getting rid of the pivots and just using xx00 and xx50.

i would get rid of those too but larger time frame traders often use those as profit targets and price really responds to those

i also might add a couple major SR levels from higher TF like 3H and daily. lots of times the important ones are already RNs so i might not

so far from what i've seen, my setup is not really effected by pivots.

subscribe!

Ron

sorry for not posting my vid yesterday, my girlfriend was off work and we went out to enjoy the day

this morning nonfarm employment change was a little better than expectations, coming in at 42k, and this should be bearish for eur/usd (bearish because its "good for the usd" but sometimes on an intra day level, eur/usd and the dow have a positive correlation because of risk aversion/appetite so it could be bullish news because US equity markets like to see good jobs data...very confusing...good thing my trade decisions aren't based off of my understanding of intermarket relationships!lol) non-manufacturing PMI comes out in 40 minutes, and the US stock market opens in 10 minutes.

we have been bouncing off of 1.3200 since before US open at 8:00 EST, i think the market may be waiting for the rest of this news but who knows. a break of the 1.3200 might give us some momentum to jump in on --there is a nice uptrend on the longer term charts and i bet a ton of people have stops below the 1.3200-1.3180 area

i think it might be interesting to start taking note of % change in price for the day of:

oil=
gold=
10 yr bonds=
dow=
eur/usd=

shortly after the US equity markets are open

correct me if i'm wrong, but oil and gold are commodities and if they are up a lot on the day, that means that there is risk appetite, and bonds should have an inverse relationship.**edit** but wait isn't gold a safe haven? that would mean it should have a positive correlation to the USD and an inverse one to eur/usd right?**

so maybe if i take note of these % change once the US equity markets are open maybe that can give me an idea of which side of the market i need to be on. i don't plan on making any trading decisions based on any of this, as it is still under observation. i'll update this post at either 9:45 or 10:00 am EST or both with the %change

hey cool makes me happy nobody ever posts here lol

the past couple of days the market has been making massive moves and barely retracing. i came close to entering a couple of times today but the market was just too fast for me i have been watching closely and sitting on the sidelines.

i saw my setup over and over but there was no reasonable retrace at all on the 5m. perhaps i should only look to the 1m for retraces and use the 5m only as a trend filter.

so 5m would be trend
1m would be retrace
30 sec, look for the trigger after retrace

some of these setups were so tempting. maybe on a day like this i'll back down my position size so i can grow a pair and jump in until i have more experience in recognizing what kind of day its gonna be

here is a table, the values are the %change in price, the x axis labels are time in EST, and the y axis labels are the markets