Live Trade: Scalping Level Breakouts with Momentum

Video Transcription:

Hello, traders. Welcome to The Scalping Course and the fourth module, Live Examples. Today we’re going to take a momo trade on a previous session high breakout on the YM which is the E-mini Dow.

Scalping breakouts

Hello, traders. This is the YM-9 range bar chart and what we have here is a short position and on the breakout of yesterday’s high, okay? Yesterday’s session high is right here and I’m going to point it out with a horizontal line. You can see it right here. And we got short once we broke with this level. We broke with this level to the downside. And remember that when we break with yesterday’s high, it can be to the upside or the downside. And when we break with yesterday’s low, it can also be to the downside or the upside. This means that our expectations are that the price broke with yesterday’s high, then we move to the 18068 level. We broke to the downside, and then we were tackling yesterday’s high, okay? We broke to the upside and now that the New York station just opened, we took a short position when we broke with yesterday’s high and when we broke with this up structure, okay?

Now, our stop-loss is going to be all the way above this area of resistance so we’re going to put our stop-loss right now. It’s a buy stop around this level. Now, let’s calculate our target. I think that these lows right here, which confluence with the daily pivot are going to be an excellent target for a short scalp right now. And the reason this is going to be a great target for a short scalp is because as you can see this area was tested heavily as a resistance. Just look at how strong this move up was and when we got here, we got a bar up and then immediate bar down, then a move down off about 34 or 35 points. So, when we broke to the upside, we tested it once, twice, three times before we broke to the downside.

So, I think our target should go around these levels right here. Right now, we are up $500 on this trade and what we are going to do is we are going to wait to get filled on our buy limit. We’re not going to divide this trade in two. We are just going to wait for ours to get filled. And while we have an almost one-to-one risk to reward ratio, we are risking 38 points and our targets are down at 51 points. So, I think that we can move our targets up a little bit just to make sure we get filled around the 70, 60 level which is a round number. And, by doing so, we are going to be taking a better than a one to one risk to reward ratio. So, we’re going to come back once we get filled on our targets or once this trade develops even further.

Scalping level breakouts

Okay, so we are about to get filled on our targets right now. As you can see, we are up $800 on this trade and we are going to move our stops about this high. As you can see, price moved all the way down here when we moved up and then we are moving down. We are going to wait for our targets to get hit and we just got filled and we just made $1,000 on this trade and, as you can see, we did have momo on the downside once we broke with yesterday’s high. And, as you can see, price reacted quickly to the zones that we were aiming at. Let me just get rid of these buy stops. Right now, I think that price might come all the way up here to these lows, which are also these zones of resistance right here, okay, and move lower, but that doesn’t matter because our scalp is over and we just made $1,000.

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