al-brooks-course
50D - Scalping
Raw transcript and slide notes for 50D - Scalping.
Overview
- Slides: 15
- Transcript segments: 353
- Status: 自动按 slide 时间线归档；核心概念和长期笔记可以在每个 slide 的
Study Notes下继续整理。
Source Media
Transcript 001
Time: 00:02
Bilingual Transcript
00:02 - 00:03
EN: This is Al Brooks.
00:03 - 00:05
EN: Thank you for watching the Brooks Trading Course.
00:05 - 00:09
EN: This is the fourth of five videos on scalping.
Slide 001
Time: 00:11
Bilingual Transcript
00:13 - 00:18
EN: I’m going to be giving some very specific scalping examples in this video,
00:18 - 00:20
EN: and I’ll talk about how to manage the trades.
Slide 002
Time: 00:21
Bilingual Transcript
00:24 - 00:27
EN: The Emini opened here with a big bear bar.
00:27 - 00:31
EN: Yesterday was a Tight Trading Range, but we have a second consecutive bear bar,
00:31 - 00:34
EN: and for me the market therefore is Always In Short
00:34 - 00:38
EN: - meaning that the first reversal up probably will be sold.
00:45 - 00:48
EN: I’m going to be talking about a lot of scalps in this video,
00:48 - 00:52
EN: and most traders can sometimes spot scalps in time to take them,
00:52 - 00:55
EN: but if it distracts them from taking swing trades,
00:55 - 00:57
EN: they should stick to the swing trades.
00:57 - 01:02
EN: However, if they are able to take the trades and manage them well, then go ahead.
01:02 - 01:03
EN: Take them.
01:03 - 01:06
EN: I use the image of a little man holding out his arm
01:06 - 01:08
EN: with a little bag of money in it.
01:09 - 01:11
EN: As long as I’m able to grab all those little bags of money,
01:11 - 01:14
EN: they can add up to a big bag of money by the end of the day.
01:22 - 01:26
EN: A lot of times you’ll realize that a scalp is setting up too late
01:26 - 01:30
EN: to take the trade, a few seconds late, and since every tick matters in a scalp,
01:30 - 01:33
EN: if you’re late it’s better not to take the trade.
01:33 - 01:37
EN: But don’t worry about it, because most of your money will come from swing trading.
01:37 - 01:41
EN: Also, if you want to scalp, there’ll be plenty of other scalps.
01:41 - 01:45
EN: On a typical day there are at least 40 1-point scalps.
01:48 - 01:52
EN: Again, if you spot it in time and you think you can manage it appropriately,
01:52 - 01:53
EN: go ahead and take it.
Slide 003
Time: 01:55
Bilingual Transcript
01:59 - 02:02
EN: Yesterday was a Tight Trading Range and we opened here with a big bear bar,
02:02 - 02:04
EN: and we have consecutive bear bars.
02:04 - 02:05
EN: The day is Always In Short.
02:05 - 02:09
EN: A lot of traders will place a limit order to sell at the high of this bar,
02:09 - 02:10
EN: look for a 1 point scalp.
02:11 - 02:14
EN: We have a Tight Trading Range at the end of yesterday
02:14 - 02:17
EN: and we are reversing up a first time and a second time here,
02:17 - 02:20
EN: so it’s a second entry buy at the bottom of a Tight Trading Range.
02:20 - 02:23
EN: It’s reasonable to buy looking for at least a bounce.
02:23 - 02:25
EN: This is a possible low of the day.
02:25 - 02:27
EN: It’s a Micro Double Bottom.
02:27 - 02:30
EN: The market went down on this bar, it went up on this bar.
02:30 - 02:33
EN: It went down on that bar, and now it’s going up a second time.
02:33 - 02:38
EN: So, a second failed breakout of the bottom of that Tight Trading Range,
02:38 - 02:39
EN: and we have a bull bar.
02:39 - 02:42
EN: Not a great looking bull bar, but it’s a bull bar
02:42 - 02:45
EN: and it’s a second entry buy at the bottom of a Trading Range.
02:48 - 02:52
EN: The odds are it’ll go up at least enough for a scalp,
02:52 - 02:56
EN: so traders will place a stop order to buy 1 tick above the high of that bull bar
02:56 - 03:00
EN: and they’ll get filled here, and they’ll put their stop just below.
03:04 - 03:09
EN: They place a limit order to exit with a 1 point profit right there.
03:09 - 03:12
EN: Their reward is smaller than their risk,
03:12 - 03:17
EN: and that means you have to be very good at determining probability.
03:17 - 03:21
EN: Probability has to be far greater than 60% to trade this.
03:21 - 03:24
EN: In this case, the probability might be 70% or 80%
03:24 - 03:26
EN: that you’re going to make a profit.
03:27 - 03:28
EN: How do you know that?
03:28 - 03:32
EN: From experience, and that’s one of the difficult things about scalping.
03:32 - 03:37
EN: The Initial Risk is often greater than your planned reward,
03:37 - 03:41
EN: and you need a very high probability to be profitable.
03:41 - 03:44
EN: The Actual Risk here, if you buy 1 tick above the high of this bar,
03:44 - 03:47
EN: your Actual Risk is 1 tick below.
03:47 - 03:50
EN: So, you’re risking about 6 ticks to make 4 ticks,
03:50 - 03:54
EN: and therefore if you’re right 70% of the time, you’ll make money.
03:57 - 03:59
EN: The bears got a reversal down.
03:59 - 04:02
EN: Now we have a very big outside up bar
Slide 004
Time: 04:00
Bilingual Transcript
04:02 - 04:05
EN: - but we’re at the top of yesterday’s Tight Trading Range
04:05 - 04:07
EN: and we’ve had many reversals already today,
04:07 - 04:10
EN: up and down and up and then down and then up.
04:17 - 04:19
EN: This is a Trading Range market.
04:20 - 04:22
EN: If you think about this for a moment,
04:22 - 04:24
EN: let’s say you want to buy above the high of this bar.
04:24 - 04:27
EN: You’re buying toward the high of a Tight Trading Range,
04:27 - 04:29
EN: and the reversal up is not all that strong.
04:29 - 04:33
EN: We have a good bull bar, but you’re buying fairly high up in a range.
04:34 - 04:36
EN: Is the probability high for that?
04:36 - 04:39
EN: No, it’s not – and look at the size of the bar.
04:39 - 04:43
EN: If you buy above the high of this bar, your stop is below the low of the bar.
04:43 - 04:45
EN: Your risk is great.
04:45 - 04:48
EN: So here you’re thinking about buying above the high of this bar,
04:48 - 04:53
EN: risking a lot, with a low probability bet (buying at the top of the Trading Range).
04:53 - 04:57
EN: Therefore, in fact, there probably are more sellers
04:57 - 04:59
EN: above the high of this bar than buyers.
05:05 - 05:08
EN: So, should you be buying up here or should you be selling up here?
05:08 - 05:12
EN: You have a big bull outside up bar, but a Trading Range market.
05:12 - 05:16
EN: Traders who are buying this bear close and this bear close are making money.
05:16 - 05:19
EN: If they bought this bear close and scaled in lower
05:19 - 05:22
EN: or if they bought this bear close, they made money.
05:22 - 05:23
EN: The market reversed.
05:23 - 05:25
EN: If they sold this bull close,
05:25 - 05:27
EN: even though it’s consecutive bull closes, they made money.
05:27 - 05:29
EN: Well, what’s going to happen now?
05:29 - 05:33
EN: You have another big bull bar closing on its high near the top of the range.
05:33 - 05:38
EN: Probably it’s not going to go up very far, and there might be more sellers
05:38 - 05:41
EN: on the close of that bar and above its high than buyers,
05:41 - 05:45
EN: and therefore an aggressive scalper will sell that close
05:45 - 05:49
EN: and put a stop up here above the top of those 3 bear bars.
05:56 - 05:59
EN: That is really not a great short, and most traders should not take that trade.
05:59 - 06:03
EN: However, it did fall a point and the bears made their money.
06:03 - 06:07
EN: The bears who took this short probably would have been willing to scale in higher.
Slide 005
Time: 06:10
Bilingual Transcript
06:11 - 06:13
EN: Tight Trading Range so far on the day.
06:16 - 06:20
EN: For the bears, they have a reversal down and a pullback,
06:20 - 06:22
EN: and this is therefore a Low 1 bear flag.
06:23 - 06:24
EN: But look where you are.
06:24 - 06:28
EN: You’re at the bottom of a Tight Trading Range that has lasted about 30 bars,
06:28 - 06:30
EN: and look at your sell signal bar.
06:30 - 06:32
EN: It has a big tail on the bottom.
06:32 - 06:34
EN: What happened at this price level today?
06:34 - 06:35
EN: We went up.
06:36 - 06:37
EN: We went up again.
06:37 - 06:38
EN: We went up, we went up.
06:39 - 06:41
EN: This time do you think it’s going down?
06:41 - 06:44
EN: No, especially with a bad sell signal bar like that.
06:48 - 06:53
EN: Therefore, there are probably more buyers at the low of this bar than sellers,
06:53 - 06:56
EN: and a bull scalper will place a limit order to buy at that low.
06:56 - 06:57
EN: He’ll get filled here.
06:57 - 07:00
EN: He might put a stop below the bottom of this big bull bar
07:00 - 07:04
EN: because if the bulls are good enough for a scalp,
07:04 - 07:07
EN: they should not allow it to fall below the low of this bull bar.
07:12 - 07:16
EN: You place a limit order to get out with a 1 point profit,
07:16 - 07:17
EN: and you get filled right there.
07:20 - 07:22
EN: Bulls starting to get a breakout here.
Slide 006
Time: 07:25
Bilingual Transcript
07:29 - 07:31
EN: You can call it a small Double Bottom Higher Low.
07:32 - 07:37
EN: This is the second reasonable attempt to reverse up from below that Trading Range.
07:37 - 07:38
EN: We reversed up here.
07:38 - 07:41
EN: Here’s a reversal attempt, a second reversal attempt.
07:41 - 07:44
EN: The bears tried to make the reversal attempt fail.
07:44 - 07:46
EN: Look what they were met with – a bull bar.
07:46 - 07:50
EN: They tried to get a small bear flag, buyers below.
07:50 - 07:56
EN: Now we have a small Double Bottom – up and up – both bars closing near their high.
07:56 - 07:59
EN: We had the magnet of the top of this big bull bar.
07:59 - 08:01
EN: Bulls want to see what’s there.
08:01 - 08:02
EN: The bears want to see what’s there,
08:02 - 08:07
EN: and therefore it’s reasonable to buy above the high of this bull bar.
08:07 - 08:10
EN: We have a pair of good bull bars closing on their highs.
08:10 - 08:12
EN: We have a bull bar here closing on its high,
08:12 - 08:14
EN: we have a bull bar here closing near its high,
08:14 - 08:16
EN: and we have a Double Bottom Higher Low.
08:17 - 08:18
EN: It’s above this low.
08:18 - 08:22
EN: It’s reasonable to buy for a scalp right above the high of that bar.
08:26 - 08:29
EN: If the bulls are good, it should not fall below the Double Bottom.
08:29 - 08:33
EN: You could put your stop below the low of this bar or below the low of this bull bar.
08:38 - 08:42
EN: You place a limit order to get out with a 1 point scalp, and you get filled there.
Slide 007
Time: 08:45
Bilingual Transcript
08:49 - 08:50
EN: What happens up here?
08:50 - 08:53
EN: Should you buy with a stop, the high of this bar,
08:53 - 08:56
EN: betting that we’ll get a breakout and a Measured Move up?
08:56 - 08:59
EN: You can call it a Double Bottom with this low or that low.
08:59 - 09:01
EN: You can call it simply a very good-looking bull bar.
09:03 - 09:07
EN: I think the bulls need more to convince traders
09:07 - 09:10
EN: that they have taken control and that this is not now a Double Top.
09:10 - 09:12
EN: We have a small Double Bottom here.
09:12 - 09:14
EN: Maybe this is a Double Top.
09:14 - 09:17
EN: Maybe we break below here and go for a Measured Move down.
09:21 - 09:24
EN: Bulls need follow-through, and until they get follow-through,
09:24 - 09:28
EN: bears will bet the bulls will not get follow-through,
09:28 - 09:31
EN: and therefore whenever the bulls need one more bar,
09:31 - 09:35
EN: the bears will sell betting that the bulls will not get that one more bar.
09:35 - 09:38
EN: For example, we have consecutive bull bars.
09:38 - 09:40
EN: The bulls are hoping that they get one more bar
09:40 - 09:43
EN: so that everyone believes they have taken control.
09:43 - 09:44
EN: Well, guess what?
09:44 - 09:47
EN: The bears are going to sell that close, thinking that,
09:47 - 09:50
EN: “Huh, bulls made money buying bear closes today.
09:50 - 09:53
EN: Bears have been making money selling bull closes today.
09:53 - 09:55
EN: Well, I’m going to sell this bull close,
09:55 - 09:58
EN: betting that the bulls will not get their one more bar.”
09:58 - 10:03
EN: They sell that close and stop above the top of the initial selloff.
10:10 - 10:12
EN: Scalp out with 1 point profit.
10:13 - 10:16
EN: As soon as they get filled on their short at that close,
10:16 - 10:20
EN: they place a limit order to buy back their shorts with a 1 point profit,
10:20 - 10:21
EN: and they get filled right there.
Slide 008
Time: 10:25
Bilingual Transcript
10:27 - 10:29
EN: For the bears, they have a reversal down.
10:30 - 10:33
EN: If you want you can think of it as a Double Top bear flag.
10:33 - 10:36
EN: Whenever you have a Double Top, I always think of it as a Low 2.
10:36 - 10:38
EN: Here’s a Low 1, here’s a Low 2.
10:38 - 10:44
EN: But a fairly prominent tail, middle of a Tight Trading Range – not a great short.
10:44 - 10:46
EN: However, we’re still Always In Short.
10:47 - 10:50
EN: We had those consecutive big bear bars making the day Always In Short,
10:50 - 10:54
EN: and the reversal up, reversal up, reversal up, reversal up
10:54 - 10:56
EN: - none of it has been enough to change it.
10:56 - 10:59
EN: So, the market still is Always In Short.
11:03 - 11:08
EN: An aggressive bear will place a stop order to sell below the low of that bar,
11:08 - 11:10
EN: taking a chance that we break below the neckline.
11:11 - 11:15
EN: Any of these bars is the neckline of this Double Top and start of a swing down.
11:15 - 11:18
EN: I don’t think this is a particularly great short,
11:18 - 11:22
EN: but it’s a reasonable scalp, taking a chance that we’ll test down.
11:28 - 11:30
EN: And the bears exit with a 1 point profit.
Slide 009
Time: 11:35
Bilingual Transcript
11:38 - 11:41
EN: The bulls have another Double Bottom Higher Low attempt,
11:42 - 11:45
EN: but we now have 3 consecutive bear bars,
11:45 - 11:49
EN: and now we have a fourth bear bar breaking below the low of that Double Bottom.
11:54 - 11:58
EN: Because of the 3 consecutive bear bars, even with the Double Bottom,
11:58 - 12:01
EN: some bears will place a limit order to sell at the high of this bar,
12:01 - 12:05
EN: arguing, okay, the bulls are thinking they have a Double Bottom,
12:05 - 12:08
EN: but we have 3 bear bars and we have a bear body on this bar.
12:08 - 12:10
EN: It’s a low probability buy.
12:10 - 12:13
EN: Therefore, they’ll sell this high and get filled right here
12:13 - 12:15
EN: as it went above the high of that bar.
12:15 - 12:18
EN: A lot of these bears would sell more higher.
12:24 - 12:26
EN: They get out with a 1 point profit.
Slide 010
Time: 12:30
Bilingual Transcript
12:33 - 12:36
EN: For the bulls, we have a Double Bottom – this low and that low
12:36 - 12:37
EN: - and we’re trying to reverse up.
12:37 - 12:39
EN: It’s a small High 2.
12:39 - 12:41
EN: High 1 and then High 2.
12:41 - 12:44
EN: But we’re starting to get a fairly Tight Bear Channel.
12:44 - 12:47
EN: You can buy with a stop above the high of this bull bar,
12:47 - 12:51
EN: but with 4 consecutive bear bars, I would not take the buy.
12:51 - 12:52
EN: I would wait.
12:52 - 12:54
EN: The character of the day is changing.
12:54 - 12:55
EN: We had 3 bear bars here.
12:55 - 12:58
EN: We only had 2 bull bars and 2 bull bars here.
12:59 - 13:00
EN: Now we’re starting to get a series of bear bars.
13:00 - 13:03
EN: The bears might be gaining control.
13:03 - 13:06
EN: I’m not opposed to taking that buy.
13:06 - 13:08
EN: If you did take it, you get out on a stop
13:08 - 13:11
EN: below the low of the Double Bottom right here, with a loss.
13:15 - 13:20
EN: Some traders instead would bet that the High 2 will fail.
13:20 - 13:24
EN: In general, I don’t like to sell near the bottom of a Tight Trading Range.
13:24 - 13:28
EN: Even though we have 4 consecutive bear bars, it’s a second entry buy.
13:28 - 13:29
EN: It’s a Double Bottom.
13:29 - 13:32
EN: I personally would rarely ever take that sell,
13:32 - 13:34
EN: even though it’s a fairly Tight Bear Channel.
13:35 - 13:39
EN: The logic behind taking it is we’re in BreakOut Mode.
13:39 - 13:43
EN: The market is probably forming either the high or low of the day.
13:44 - 13:46
EN: We are still Always In Short.
13:46 - 13:48
EN: The bulls never did enough to make it Always In Long,
13:48 - 13:52
EN: and the bears have a Double Top Lower High and now 4 bear bars.
13:53 - 13:56
EN: Slightly more negative than positive.
13:56 - 14:00
EN: Traders will take that short, certainly for a swing down.
14:00 - 14:02
EN: Aggressive traders will take it for a scalp.
14:02 - 14:05
EN: Again, for me, that’s one I would not take for a scalp.
14:16 - 14:21
EN: By going outside down, we have a failed High 2 buy – High 1, High 2.
14:21 - 14:23
EN: The bulls would put their stop down here,
14:23 - 14:27
EN: and we broke below the bottom of that High 2 bull flag.
14:27 - 14:28
EN: We might get a Measured Move down.
14:28 - 14:31
EN: We’re also breaking below a Double Bottom here,
14:31 - 14:33
EN: and we’re in BreakOut Mode.
14:33 - 14:35
EN: This could be the start of a bear trend.
14:36 - 14:39
EN: You have trapped bulls who, all morning long,
14:39 - 14:42
EN: have been betting on an early low of the day.
Slide 011
Time: 14:40
Bilingual Transcript
14:43 - 14:46
EN: Now we’re breaking below the low of this big bull reversal bar
14:46 - 14:48
EN: and this Double Bottom.
14:51 - 14:57
EN: Some bears will sell on a stop on the break below that Double Bottom.
14:57 - 15:00
EN: Others will sell the close of the bar, taking a chance
15:00 - 15:04
EN: that we’re beginning a series of bear bars and that the bulls will give up.
15:06 - 15:10
EN: In general, by the end of the first hour and a half or so,
15:10 - 15:15
EN: there’s a 90% chance the market has seen either the high or low of the day.
15:15 - 15:17
EN: At this point we’re in BreakOut Mode
15:17 - 15:21
EN: and we’re breaking out below this Double Bottom.
15:21 - 15:23
EN: Probably this is the high of the day,
15:23 - 15:26
EN: and therefore the range will probably double,
15:26 - 15:29
EN: and selling this close is reasonable – certainly for a swing.
15:29 - 15:32
EN: Some traders might scalp all or part.
15:35 - 15:39
EN: If they scalp, they’ll place a limit order to get out 1 point below their entry,
15:39 - 15:41
EN: and they get filled here.
15:48 - 15:51
EN: Now we have a bear breakout to a new low, a close
15:51 - 15:55
EN: below the low of the first 15 or 20 bars of the day,
15:55 - 15:57
EN: and now we have a second consecutive bear bar.
15:57 - 15:59
EN: Even though it has a fairly big tail,
15:59 - 16:02
EN: meaning this is probably not going to be a very strong bear trend,
16:02 - 16:05
EN: it’s still a follow-through bar after a bear breakout
16:05 - 16:08
EN: on a day that is in BreakOut Mode.
16:08 - 16:10
EN: Therefore, the odds are we’ll go lower,
16:10 - 16:13
EN: maybe at least a couple legs – one, pullback, two.
16:13 - 16:15
EN: Traders will look to sell.
16:17 - 16:19
EN: Some traders will just sell closes.
16:19 - 16:23
EN: If you sell the close, your stop is above the top of the bear leg.
16:23 - 16:28
EN: You can sell the close and hold for a swing, or you can take repeated sells.
16:28 - 16:30
EN: Sell the close, scalp, sell the close, scalp.
16:30 - 16:34
EN: If you sell that close, you can place a limit order to get out 1 point lower
16:34 - 16:37
EN: - right here – but now you have another bear bar closing below its midpoint.
16:37 - 16:39
EN: It’s another Sell The Close bar.
16:45 - 16:47
EN: We have a Sell The Close bear trend.
16:48 - 16:52
EN: After you exit at that blue box, you sell the next bear close right here.
16:57 - 17:00
EN: If you sold that close and then you saw this, what are you thinking?
17:01 - 17:04
EN: It reversed up before you made your 1 point profit.
17:05 - 17:07
EN: This is a disappointment bar.
17:07 - 17:09
EN: If you have a Sell The Close bear trend
17:09 - 17:12
EN: and then a pretty good bull bar, the bears will be disappointed.
17:13 - 17:14
EN: Is it a major reversal?
17:14 - 17:16
EN: No, it’s probably a minor reversal.
17:16 - 17:18
EN: The channel down is very tight.
Slide 012
Time: 17:17
Bilingual Transcript
17:18 - 17:20
EN: It’s reasonable to sell that close.
17:20 - 17:23
EN: If you do something reasonable and you manage your trade correctly,
17:23 - 17:27
EN: you’re usually able to at least avoid a loss, and usually make a profit.
17:28 - 17:30
EN: In a Sell The Close bear trend like this
17:31 - 17:34
EN: and the market immediately reverses up in a bull bar like that,
17:34 - 17:38
EN: usually you can sell more higher, like a couple points higher,
17:38 - 17:40
EN: expecting the market to come back down to this close,
17:40 - 17:43
EN: and then you can get out breakeven on this entry
17:43 - 17:45
EN: and with a profit on your higher entry.
Slide 013
Time: 17:50
Bilingual Transcript
17:58 - 18:00
EN: You can see what happened here.
18:00 - 18:05
EN: The bears who sold 2 points above this close got filled here,
18:05 - 18:07
EN: and then the market came back down to their close.
18:07 - 18:09
EN: They can get out breakeven at their first entry
18:09 - 18:12
EN: and with 2 points profit on their second entry.
18:13 - 18:18
EN: You could also sell below the low of this bar for a Low 1 bear flag.
18:18 - 18:21
EN: We broke to a new low of the day, 3 consecutive bear bars,
18:21 - 18:23
EN: and we have a bear bar closing on its low.
18:27 - 18:30
EN: If you took the short on this close and sold more 2 points higher,
18:30 - 18:34
EN: you get out here with 2 points profit there and breakeven here.
18:34 - 18:38
EN: Other bears would simply sell more below a bear bar.
18:38 - 18:41
EN: Usually if I take a short here, sell the close,
18:41 - 18:45
EN: I’m going to be selling more with a limit order because this Low 1 short,
18:46 - 18:52
EN: the entry is usually not far enough above the first entry to make it worthwhile.
18:52 - 18:54
EN: If ever I’m scaling into a bear trend
18:55 - 18:58
EN: and I’m looking to take the second entry with a stop,
18:59 - 19:01
EN: I prefer to have my stop entry be at least two
19:01 - 19:04
EN: to three times the size of a scalp above my first.
19:05 - 19:07
EN: In other words, 2 to 3 points above the first,
19:07 - 19:09
EN: and this is too close to the first.
19:09 - 19:14
EN: Had I shorted this and did not sell more here, I would not have sold more here.
19:14 - 19:18
EN: I either would’ve gotten out breakeven or I would’ve held short,
19:18 - 19:21
EN: hoping that this is the start of a swing down.
Slide 014
Time: 19:25
Bilingual Transcript
19:26 - 19:27
EN: Bear breakout.
19:27 - 19:29
EN: Probably at least one more leg down.
19:29 - 19:32
EN: Well, we got one more leg down, and look what we have now.
19:32 - 19:36
EN: Another bull bar closing on its high.
19:43 - 19:44
EN: You can call it a Micro Double Bottom
19:44 - 19:48
EN: or a small Double Bottom, a Lower Low Double Bottom.
19:48 - 19:53
EN: In any case, the bears who sold this close, what are they doing now?
19:53 - 19:55
EN: Are they selling more?
19:55 - 19:57
EN: No, they’re giving up.
19:57 - 20:01
EN: This is a sign that the Sell The Close bears were sufficiently disappointed
20:01 - 20:05
EN: by this bar that they wanted to buy back their shorts
20:05 - 20:07
EN: when it got to around their close.
20:08 - 20:11
EN: Some of them held short briefly during this bar,
20:11 - 20:14
EN: but immediately afterwards, this is bears giving up.
20:15 - 20:17
EN: They were sufficiently disappointed by this.
20:17 - 20:20
EN: A whole bunch of them started buying back their shorts
20:20 - 20:24
EN: when it got back down to around that close, and this is bears buying
20:24 - 20:28
EN: - and it’s aggressive bulls buying as well, betting that the bears would give up.
20:28 - 20:30
EN: This is not a strong selloff.
20:30 - 20:33
EN: The bars are relatively small, prominent tails.
20:33 - 20:35
EN: A lot of Trading Range price action here,
20:36 - 20:39
EN: disappointment for the Sell The Close bears here.
20:39 - 20:43
EN: A lot of the bears gave up and a lot of the bulls bought for a scalp up.
20:45 - 20:47
EN: You can also call it a Wedge channel.
20:47 - 20:52
EN: One push down, reversal, another push down, reversal, push down, reversal.
20:52 - 20:53
EN: Different ways to look at it as a Wedge.
20:53 - 20:57
EN: You can say this is the first push, second push, third push.
20:57 - 21:02
EN: This could be the first push on some computers, second push, third push.
21:03 - 21:05
EN: Different computers see different things,
21:05 - 21:08
EN: but most computers see this as a weak bear trend.
21:08 - 21:11
EN: Probably a bear leg in what will become a Trading Range,
21:11 - 21:14
EN: which means we’ll probably get a bull leg before long.
21:18 - 21:22
EN: We have a Double Top bear flag and we’re also around a Measured Move down.
21:22 - 21:26
EN: Does not matter if you use this high or that high for the Measured Move projection.
21:27 - 21:30
EN: In either case we’re around that Measured Move target.
Slide 015
Time: 21:35
Bilingual Transcript
21:35 - 21:39
EN: I gave some very specific scalping examples in this video.
21:39 - 21:42
EN: Again, most traders should focus on swing trades.
21:43 - 21:45
EN: However, if you spot a reasonable scalp
21:45 - 21:48
EN: and you think you can manage it correctly, go ahead, take it.
21:48 - 21:49
EN: It’s reasonable to do.
21:53 - 21:54
EN: I’m Al Brooks.
21:54 - 21:57
EN: Thank you for watching the Brooks Trading Course.
21:57 - 22:00
EN: This is the fourth of five videos on scalping.