al-brooks-course
50E - Scalping
Raw transcript and slide notes for 50E - Scalping.
Overview
- Slides: 16
- Transcript segments: 342
- 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 fifth of five videos on scalping examples.
00:13 - 00:17
EN: I’m going to be continuing the chart from the prior video,
00:17 - 00:20
EN: again discussing scalping setups and management.
Slide 001
Time: 00:24
Bilingual Transcript
00:25 - 00:29
EN: The Emini sold off in a spike, pullback, channel,
00:30 - 00:34
EN: and we have a couple bull bars closing near their highs.
00:38 - 00:41
EN: This is a reasonable swing buy setup.
00:42 - 00:45
EN: We have an upper Trading Range, we have a couple reversals,
00:45 - 00:49
EN: we have a bear breakout and a second leg down, both closing on their highs.
00:49 - 00:53
EN: The follow-through after the reversals down has been bad.
00:53 - 00:54
EN: Bear breakout, bull bars.
00:54 - 00:55
EN: Bear bar, bull bar.
00:56 - 00:57
EN: Bear bar, bull bar.
00:58 - 01:02
EN: 2, 3 bear bars, prominent tails, and then a bull bar closing on its high.
01:02 - 01:05
EN: Another pair of bear bars, bull bar closing on its high.
01:05 - 01:08
EN: When you have bad follow-through like that,
01:08 - 01:12
EN: the selloff is probably a bear leg in what will become a Trading Range.
01:12 - 01:14
EN: A bear leg in a Trading Range
01:14 - 01:17
EN: is usually followed by a bull leg in a Trading Range.
01:17 - 01:20
EN: Therefore, this is a reasonable swing buy setup.
01:20 - 01:24
EN: You have a Micro Double Bottom, you have very good buy signal bars,
01:24 - 01:27
EN: you have a bear breakout and a second leg down, reversing up,
01:27 - 01:31
EN: and you have an upper Trading Range, a magnet above,
01:31 - 01:34
EN: and the selloff has had bad follow-through on the way down.
01:36 - 01:39
EN: However, you do not have to swing trade it.
01:39 - 01:42
EN: Sometimes it’s reasonable for scalpers
01:42 - 01:46
EN: to take scalps when there’s a reasonable swing setup.
01:57 - 02:00
EN: There are many ways to handle entering here.
02:00 - 02:02
EN: One is to buy above the high of this bar with a stop.
02:02 - 02:05
EN: Another is to buy the close of the follow-through bar.
02:05 - 02:06
EN: It has a bull body.
02:07 - 02:11
EN: Even though it’s only a 1 tick bull body, it’s a bull body, so that’s reasonable.
02:13 - 02:15
EN: Some traders will buy with a limit order
02:15 - 02:18
EN: on the close of this bar or on the close of that bar.
02:22 - 02:25
EN: A bull scalper looking for a 1 point scalp,
02:25 - 02:30
EN: for whatever reason he buys that close, this close, on a stop above this bar
02:30 - 02:34
EN: - his 1 point profit target is here, right at the Moving Average.
02:34 - 02:38
EN: You’ll have bear scalpers who will sell a strong bull close at the Moving Average,
02:38 - 02:42
EN: especially given that the follow-through was not all that aggressive.
02:42 - 02:46
EN: It’s only a 1 tick bull doji, so some bear scalpers will sell
02:46 - 02:50
EN: at the Moving Average or the close of this bull bar for a scalp down.
Slide 002
Time: 02:55
Bilingual Transcript
02:58 - 03:02
EN: We have a Double Top bear flag and we’re at the Moving Average.
03:02 - 03:06
EN: The close of the bull bar was not above the Moving Average,
03:06 - 03:08
EN: and the follow-through bar has a bear body.
03:09 - 03:12
EN: It’s a Low 2 short – Low 1, Low 2.
03:12 - 03:18
EN: Every Double Top is a Low 2 short, but there probably are buyers below this bar
03:18 - 03:20
EN: because the reversal up is good enough
03:20 - 03:23
EN: so that the traders will get at least a second leg up.
03:23 - 03:25
EN: The probability favors a second leg up.
03:25 - 03:29
EN: We have 3 bull bars, 2 with decent size bodies closing on their highs,
03:29 - 03:32
EN: and we have another bar here for a Double Bottom.
03:34 - 03:40
EN: If traders buy with a limit order below this bar, their stop is down here,
03:40 - 03:46
EN: and most traders who take that trade are willing to buy more lower, to scale in.
03:51 - 03:56
EN: A weak sell setup, a Double Top, but we’re probably Always In Long,
03:56 - 04:00
EN: and we only have a doji sell signal bar, so bulls will buy the low,
04:00 - 04:02
EN: betting that the sell will fail,
04:02 - 04:05
EN: and they’ll put a stop below the bottom of the bull trend.
04:05 - 04:09
EN: Remember, the bulls are betting that this is the start of a swing up,
04:09 - 04:13
EN: and therefore they need the market to continue to form Higher Lows.
04:13 - 04:17
EN: They do not want any selloff here to fall below this low.
04:17 - 04:19
EN: They believe this is the start of a bull trend
04:19 - 04:23
EN: and the pullbacks should not fall below the start of the bull trend.
04:26 - 04:31
EN: If he’s a scalper, he buys that low, places a limit order to get out 1 point above.
04:31 - 04:33
EN: He takes his profit.
04:35 - 04:38
EN: Bull breakout, a surprisingly big bar.
Slide 003
Time: 04:35
Bilingual Transcript
04:38 - 04:42
EN: Usually when you get a surprise bar, you’ll get at least a small second leg up.
04:56 - 04:57
EN: We have a bear channel.
04:58 - 05:00
EN: Usually it evolves into a Trading Range.
05:00 - 05:04
EN: It’s possible that this is a 2nd Leg Trap in a Trading Range
05:04 - 05:07
EN: - first leg up, pullback, and then a strong breakout,
05:07 - 05:11
EN: but a Lower High, and it could trap bulls into buying high.
05:12 - 05:14
EN: Probably we’re going higher.
05:14 - 05:18
EN: There’s room to the top of the range, and this is a surprise bar big enough
05:18 - 05:21
EN: so that even if it does turn out to be a 2nd Leg Trap,
05:21 - 05:24
EN: the bulls will probably get at least a small second leg up.
05:27 - 05:30
EN: Therefore, bulls can buy that close and put a stop either
05:30 - 05:34
EN: below the Buy Climax bar or below this minor Higher Low.
05:39 - 05:43
EN: However, because the bears have a potential Wedge – first push down,
05:43 - 05:46
EN: second push down, and then a failed breakout above this Double Top;
05:46 - 05:49
EN: if we start to reverse, that would be a third push down
05:49 - 05:52
EN: - the bears will sell this close as well.
05:52 - 05:54
EN: Remember, look to the left.
05:55 - 05:56
EN: Trading Range.
05:56 - 05:57
EN: Big bull bar.
05:57 - 05:59
EN: Traders made money selling the bull close.
05:59 - 06:00
EN: Big bear bar.
06:00 - 06:03
EN: Traders made money buying the bull close.
06:03 - 06:04
EN: Bull breakout.
06:04 - 06:07
EN: Traders made money selling the bull close.
06:07 - 06:09
EN: A bear bar, outside down.
06:09 - 06:11
EN: They made money buying the bear close.
06:11 - 06:14
EN: If you bought this close, you could buy more lower
06:14 - 06:16
EN: and you were able to get out with a profit.
06:16 - 06:17
EN: A big bull bar.
06:17 - 06:18
EN: We went down.
06:19 - 06:22
EN: Bears made money selling this close.
06:22 - 06:25
EN: Bulls made money buying this close, a bear breakout.
06:25 - 06:29
EN: Therefore, with all of the reversals after strong trend bars,
06:29 - 06:31
EN: the bears will sell this close as well,
06:31 - 06:36
EN: betting against a sustained strong breakout and the start of a bull trend.
06:37 - 06:41
EN: They’ll bet instead on terrible follow-through because – look to the left
06:41 - 06:44
EN: - every strong trend bar has had terrible follow-through.
06:50 - 06:55
EN: In a Trading Range, usually bulls and bears can make money buying
06:55 - 06:59
EN: or selling at any time, if they use wide stops and scale in
06:59 - 07:00
EN: and manage their trades well.
07:01 - 07:03
EN: This is a good example.
Slide 004
Time: 07:05
Bilingual Transcript
07:09 - 07:10
EN: Here’s the bull case.
07:10 - 07:13
EN: The bull buys that close, he puts his stop down here,
07:13 - 07:18
EN: betting that we’ll get at least a small second leg up before we get a reversal down.
07:26 - 07:29
EN: He can buy more 1 point lower or at the low of this bar,
07:29 - 07:34
EN: betting against the reversal, and then he places a limit order
07:34 - 07:38
EN: to get out at his first entry price here, breakeven on his first buy
07:38 - 07:41
EN: and then with a 1 point profit on his lower buy.
07:41 - 07:45
EN: He may have had a limit order to buy more another point lower
07:45 - 07:48
EN: or even another point below that, but those orders were not filled.
07:52 - 07:57
EN: He has to trade small enough so that however many times he’s willing
Slide 005
Time: 07:55
Bilingual Transcript
07:57 - 08:00
EN: to add to his position, if he gets stopped out,
08:00 - 08:03
EN: the loss is no greater than on any other trade.
08:05 - 08:09
EN: I said bears can sell that close and make money, and they can.
08:14 - 08:19
EN: A bear selling that close needs the market to stay below a major Lower High.
Slide 006
Time: 08:15
Bilingual Transcript
08:19 - 08:20
EN: This is a Double Top.
08:20 - 08:24
EN: We have a series of bear bars and a new low.
08:24 - 08:29
EN: This is a major Lower High, and therefore bears will sell this close,
08:29 - 08:33
EN: scale in higher if they have to, looking for a 1 point scalp.
08:37 - 08:42
EN: It fell 1 point on the very next bar, and they can exit with their 1 point profit.
08:42 - 08:44
EN: They were willing to scale in higher if they had to,
08:44 - 08:49
EN: but if the market immediately goes their way, they just take their profit.
Slide 007
Time: 08:55
Bilingual Transcript
08:58 - 09:00
EN: Four bear dojis.
09:01 - 09:03
EN: It’s important that the bodies are shrinking
09:03 - 09:05
EN: and that the bodies are not particularly big;
09:05 - 09:08
EN: however, it’s bad follow-through after a bull breakout,
09:08 - 09:13
EN: and therefore this small bull flag might be the final bull flag.
09:13 - 09:17
EN: Remember I said the bulls were expecting at least a small second leg up.
09:17 - 09:22
EN: Well, it might be a small leg up lasting just 1, 2, 3 bars.
09:24 - 09:27
EN: This is a potential final bull flag.
09:33 - 09:36
EN: Because of that and because of all the Trading Range price action,
09:37 - 09:39
EN: bears will place a limit order to sell at the high of that bar.
09:39 - 09:41
EN: They’ll scale in higher.
09:41 - 09:45
EN: Their stop is above the top of the most recent major Lower High.
09:46 - 09:48
EN: Remember, bulls made money buying that low.
09:48 - 09:50
EN: Bears made money selling that high.
09:51 - 09:55
EN: Even the bulls who bought the breakout below this Double Bottom made money
09:55 - 09:58
EN: if they use wide stops and scale in.
09:58 - 09:59
EN: Bulls made money buying below here.
09:59 - 10:01
EN: Bears made money selling there.
10:01 - 10:04
EN: A lot of profit for limit order traders,
10:04 - 10:07
EN: and therefore bears will sell above this high,
10:07 - 10:10
EN: betting that we’ll get some profit-taking
10:10 - 10:15
EN: and at least enough of a selloff for a 1 point scalp – and they did.
10:16 - 10:21
EN: The next bar, the market fell enough for them to get out with a 1 point scalp.
Slide 008
Time: 10:25
Bilingual Transcript
10:31 - 10:36
EN: 3 consecutive bear bars, 1 closing on its low with a decent size body.
10:37 - 10:39
EN: That is not good for the bulls.
10:39 - 10:43
EN: Whenever you get a leg up, especially in a Trading Range,
10:43 - 10:48
EN: and then you start to get a reversal down with 3 or more consecutive bear bars,
10:48 - 10:52
EN: the odds are there’ll be sellers above and the first reversal up will fail
10:52 - 10:53
EN: and form a Lower High.
10:55 - 10:58
EN: Also, it’s a second leg up – one, pullback, two
10:58 - 11:01
EN: - and it’s a consecutive top pattern.
11:01 - 11:04
EN: The bears had a Double Top bear flag here.
11:04 - 11:08
EN: Instead of getting a swing down, we got a bull breakout,
11:08 - 11:11
EN: and now we’re having a second complex top.
11:11 - 11:16
EN: A complex top, two legs up, another complex top, two legs up.
11:16 - 11:17
EN: So, it’s a type of Low 4.
11:17 - 11:19
EN: Even though this low is below that low,
11:20 - 11:23
EN: the bears tried to reverse down here, failed.
11:23 - 11:27
EN: The bulls got a breakout and a second leg up, and that means a second sell signal.
11:28 - 11:32
EN: Usually you’re going to get a couple small legs down from that.
11:39 - 11:43
EN: Because of that, the bears will sell at the high of the prior bar,
11:44 - 11:46
EN: betting that it’ll form a Lower High.
11:46 - 11:49
EN: They’ll place a limit order to sell at the high of this bar
11:49 - 11:52
EN: and they’ll get filled here and they’ll put their stop up there,
11:52 - 11:54
EN: and they’re willing to scale in higher.
11:58 - 12:00
EN: In this case, they did not have to.
12:00 - 12:04
EN: The market immediately went down to their profit target
12:04 - 12:08
EN: and they exited with a limit order 1 point below their sell entry.
Slide 009
Time: 12:10
Bilingual Transcript
12:20 - 12:23
EN: You could call this a bull trend and a High 1 buy,
12:24 - 12:26
EN: but the tail on the top of this bar
12:26 - 12:30
EN: and the 3 consecutive bear bars made it a low probability bet.
12:31 - 12:37
EN: Also, you can call this a Wedge – one, two, three or one, two, three, four
12:37 - 12:41
EN: - and a Low 4 short – Low 1, Low 2, Low 1, Low 2.
12:41 - 12:45
EN: Maybe we’ll get a deeper pullback to the bottom of this Buy Climax.
12:45 - 12:47
EN: Maybe even a test of the low of the day.
12:53 - 12:55
EN: For the bulls, now they have a Wedge bull flag.
12:55 - 12:59
EN: Three pushes down – one, pullback, two, pullback, three.
Slide 010
Time: 12:55
Bilingual Transcript
12:59 - 13:03
EN: Does not matter that the pullback from the first leg down went to a new high.
13:03 - 13:06
EN: It’s still part of the correction process from this breakout.
13:06 - 13:09
EN: The bulls have a Micro Double Bottom, a decent buy signal bar.
13:09 - 13:11
EN: This is a reasonable buy.
13:11 - 13:15
EN: Also, a Double Bottom, a test of the bottom of the Buy Climax.
13:15 - 13:18
EN: Did not quite get there, and that is a problem.
13:18 - 13:21
EN: It lowers the probability for the bulls looking to buy here.
13:21 - 13:25
EN: Normally when you have a Buy Climax bar and then a correction
13:26 - 13:30
EN: and it gets close to the low of the bar, it has to get to the low of that bar.
13:33 - 13:35
EN: You can see what happened: we reversed down.
13:35 - 13:37
EN: I’m not opposed to taking this buy.
13:37 - 13:44
EN: However, usually when I see an obvious magnet and it’s within a point or two
13:44 - 13:48
EN: of where the low is, the odds are the market has to get down to that magnet,
13:48 - 13:52
EN: and it makes me hesitant to buy – even though we have a Wedge bull flag
13:52 - 13:54
EN: and it is a reasonable buy.
13:54 - 13:58
EN: So, bulls who did take that buy, they would get out below here.
13:58 - 14:00
EN: However, they would look to buy a reversal up.
14:00 - 14:05
EN: Some bulls who took that buy would buy more here, betting against a bear trend.
14:11 - 14:15
EN: We have a failed buy signal, a Double Top bear flag
14:15 - 14:18
EN: - early bear trend, Double Top bear flag.
14:18 - 14:21
EN: We have a failed High 2 buy, and it was a reasonable buy.
14:21 - 14:24
EN: You have to be wondering if we’ll get a couple legs down.
14:30 - 14:33
EN: Some bears would sell on a stop below this bear bar,
14:33 - 14:36
EN: betting on a Double Top bear flag, a Low 2 bear flag,
14:36 - 14:38
EN: and at least a little bit more down.
14:38 - 14:43
EN: Also, the bulls who bought above this bull bar thinking they had a Wedge bull flag
14:43 - 14:48
EN: and a small High 2 would be disappointed by this bear bar closing on its low,
14:48 - 14:52
EN: and many of them would get out either below that bear bar or below this bar.
14:52 - 14:55
EN: Therefore, it’s a reasonable short.
14:57 - 15:00
EN: They get out with a 1 point scalp.
15:01 - 15:03
EN: The day is a scalping day.
15:03 - 15:07
EN: Obviously, you could take some swing trades, but a lot of traders would scalp.
Slide 011
Time: 15:10
Bilingual Transcript
15:11 - 15:13
EN: This is another surprise bar.
15:13 - 15:15
EN: We have a big tail on the bottom of this bar,
15:15 - 15:19
EN: so you think that we’re continuing with the Trading Range price action,
15:19 - 15:21
EN: but now we have another bear bar closing on its low.
15:21 - 15:23
EN: We have 3 consecutive bear bars.
15:23 - 15:27
EN: We have a Wedge bull flag and we have 3 consecutive bear bars
15:27 - 15:29
EN: breaking below the low of that Wedge bull flag.
15:31 - 15:33
EN: That increases the chances that this breakout
15:33 - 15:36
EN: will have at least one more small leg down.
15:36 - 15:40
EN: Therefore, this reversal up probably will fail.
15:40 - 15:43
EN: There probably will be more sellers than buyers at the high of this bar.
15:53 - 15:54
EN: Possible Measuring Gap.
15:54 - 15:58
EN: We have a Wedge bull flag, a bear breakout.
15:58 - 15:59
EN: 3 consecutive bear bars.
15:59 - 16:01
EN: Possibly a Measured Move down.
16:06 - 16:09
EN: Some traders will sell that strong bear close,
16:09 - 16:11
EN: especially since it’s the third bar down.
16:12 - 16:16
EN: Others will sell with a limit order at the high of this bar,
16:17 - 16:20
EN: or they’ll sell this close and sell more 1 point higher,
16:20 - 16:23
EN: 2 points higher, stop above the top of the bear leg.
16:23 - 16:26
EN: Not that far above; just a little bit above.
16:33 - 16:34
EN: Bears selling this close.
16:34 - 16:36
EN: Some might add on here.
16:36 - 16:39
EN: It’s about 1 point above their original entry.
16:39 - 16:43
EN: When you’re scaling in, normally you want to make sure your second entry
16:43 - 16:46
EN: is at least the size of a scalp above your first.
16:59 - 17:04
EN: The idea is once you get the reversal up, you’re trying to get out breakeven
17:04 - 17:08
EN: on your first entry, and you want a scalp profit on your second entry.
17:08 - 17:11
EN: So, you want your second entry to be at least the size of a scalp
17:12 - 17:14
EN: so when it gets back to the first entry,
17:14 - 17:16
EN: you make a profit, a scalp profit on the second.
17:23 - 17:26
EN: Is this becoming a Sell The Close bear trend?
17:26 - 17:27
EN: It might be.
17:27 - 17:30
EN: It’s not particularly strong, but we have 3 bear bars
17:30 - 17:34
EN: and a break below an attempt by the bulls to form a Higher Low Major Trend Reversal.
17:35 - 17:38
EN: Bear trend, bull breakout, and a Higher Low,
17:38 - 17:41
EN: and it’s a Wedge Higher Low, so it’s a good-looking buy signal.
17:41 - 17:43
EN: But we’ve got 3 consecutive bear bars,
17:43 - 17:48
EN: and that is a fairly strong rejection of the buy argument.
17:51 - 17:53
EN: Some bears will sell closes.
17:53 - 17:56
EN: Every strong bear close, they’ll sell the close,
17:56 - 18:01
EN: stop above the most recent either minor high or more major high,
18:01 - 18:03
EN: again looking for 1 point scalps.
18:07 - 18:08
EN: It fell a point.
18:08 - 18:09
EN: They exit.
18:09 - 18:12
EN: Other bears will say, huh, that’s another bear bar closing on its low.
18:12 - 18:15
EN: Isn’t that another Sell The Close bar?
18:15 - 18:16
EN: Yes.
18:16 - 18:20
EN: So, if a bear had a limit order to take a 1 point profit, they got filled,
18:20 - 18:24
EN: and then he sees another bear bar closing on its low
18:24 - 18:27
EN: - he could immediately sell again for another 1 point scalp.
18:34 - 18:36
EN: Also, there’s room to the low of the day.
Slide 012
Time: 18:35
Bilingual Transcript
18:36 - 18:39
EN: We have a high, a Lower High, a Lower High.
18:39 - 18:43
EN: It looks like a Trading Range, but it could also be a Broad Bear Channel,
18:43 - 18:45
EN: and if so, we should get down to the low of the day,
18:46 - 18:50
EN: and there’s room from this close down to the low of the day for a scalp.
Slide 013
Time: 19:00
Bilingual Transcript
19:05 - 19:07
EN: We have a Sell The Close bear trend,
19:07 - 19:09
EN: but now we’re getting a tail on the bottom of the bar.
19:09 - 19:13
EN: Also, we’ve had 3 bear bars and 3 more bear bars
19:13 - 19:17
EN: and a lot of Trading Range price action, and we’re near the low of the day.
19:17 - 19:22
EN: Whether this is a Trading Range day – which it is – or a Broad Bear Channel
19:22 - 19:26
EN: - which it is – we don’t know at this point; however, in both cases,
19:26 - 19:29
EN: the market usually finds buyers around the prior low.
19:30 - 19:34
EN: This is not a good location to continue to sell closes
19:34 - 19:36
EN: because we broke to the new low,
19:36 - 19:40
EN: and there may be enough buyers there for the market to bounce.
19:45 - 19:48
EN: Remember I said bulls were buying below bars and scalping,
Slide 014
Time: 19:45
Bilingual Transcript
19:48 - 19:50
EN: bears were selling above bars and scalping.
19:50 - 19:53
EN: Bears selling above, even selling above here,
19:53 - 19:55
EN: adding on, scaling in, and then getting out.
19:55 - 19:58
EN: Buying below here and scalping up.
19:59 - 20:01
EN: Well, guess what?
20:01 - 20:02
EN: A new low of the day.
20:02 - 20:05
EN: Yes, 6 of the past 7 bars have bear bodies,
20:05 - 20:08
EN: but the bear bodies are not especially big,
20:08 - 20:12
EN: and we have a tail here, bad follow-through here, big tail here.
20:12 - 20:13
EN: New low of the day.
20:13 - 20:18
EN: Well, a lot of scalpers will buy with a limit order at this low and get filled here.
20:19 - 20:22
EN: Other traders will look to scalp on a reversal up
20:22 - 20:25
EN: or maybe if we get a Micro Double Bottom and then a reversal up.
20:30 - 20:32
EN: Bear trend, bull breakout.
20:33 - 20:34
EN: Lower Low Major Trend Reversal.
20:34 - 20:40
EN: Three pushes down – one, pullback, two, pullback, three, pullback.
20:40 - 20:42
EN: It’s a very Tight Bear Channel.
20:42 - 20:44
EN: The first reversal up probably is minor.
20:44 - 20:50
EN: However, given that it’s a Trading Range day, a lot of bulls will look to buy.
20:53 - 20:55
EN: We’re around a Measured Move down.
20:55 - 20:57
EN: Remember, the bulls had a Wedge bull flag here.
20:57 - 21:01
EN: We got a bear breakout, and therefore traders expected two legs down
21:01 - 21:05
EN: - one, pullback, two – and they expected this to be a Measuring Gap.
21:06 - 21:09
EN: In other words, there would be profit-takers around a Measured Move down,
21:09 - 21:12
EN: especially since it’s at the low of the day.
21:14 - 21:17
EN: Many of the bears who did hold and took profits here
21:17 - 21:20
EN: - they created that tail – are willing to sell again,
21:21 - 21:26
EN: but probably after only a couple legs up, which means a lot of the bears
21:26 - 21:31
EN: will not sell the first reversal up, and therefore bulls will buy for scalps.
21:36 - 21:38
EN: You can buy above the high of this bar.
21:38 - 21:42
EN: You can either put a stop below the low here or use a wider stop.
21:43 - 21:46
EN: Some bulls will buy here and they’ll place a limit order
21:46 - 21:48
EN: to buy more if it falls below that bar.
21:48 - 21:52
EN: They’ll trade small enough so that if they add their position,
21:52 - 21:55
EN: their risk is no bigger than on any other trade.
21:56 - 22:00
EN: If they buy here and it simply goes up, they’ll take their profit.
22:02 - 22:03
EN: That’s what happened here.
Slide 015
Time: 22:05
Bilingual Transcript
22:12 - 22:16
EN: 3 consecutive bull bars, all closing above their midpoints,
22:17 - 22:19
EN: 2 closing relatively close to the high.
22:20 - 22:23
EN: Therefore, if the bears try to get a continuation down,
22:24 - 22:28
EN: probably buyers at the low of the prior bar and at least a small second leg up.
22:29 - 22:31
EN: It could be an early Buy The Close bull trend.
22:32 - 22:36
EN: Very Tight Bear Channel, probably the first reversal up is minor.
22:36 - 22:41
EN: However, because of the 3 bull bars reversing up from the bottom of a Trading Range,
22:41 - 22:44
EN: probably we’ll get at least two legs up.
22:49 - 22:53
EN: We don’t know if we’ll get a fourth, fifth, sixth bar in a row,
22:53 - 22:56
EN: and therefore traders might start buying closes.
22:56 - 22:59
EN: We do know that if it reverses down,
22:59 - 23:03
EN: there probably will be buyers below and we’ll get a Higher Low.
23:03 - 23:08
EN: So, bulls buying this close can buy more lower and put a stop down here,
23:08 - 23:12
EN: confident that they’ll be able to get out breakeven on their first entry
23:12 - 23:14
EN: and with a profit on their lower entry.
23:18 - 23:20
EN: Instead of going down, we went sideways,
23:20 - 23:23
EN: and the bull scalpers were able to exit here with a 1 point scalp.
23:28 - 23:33
EN: I gave some more scalping examples in this video and how to manage the trades.
Slide 016
Time: 23:30
Bilingual Transcript
23:37 - 23:38
EN: I’m Al Brooks.
23:38 - 23:40
EN: Thank you for watching the Brooks Trading Course.
23:40 - 23:44
EN: This is the fifth of five videos on scalping examples.