Scalping Trending markets

[ElectricSavant]

Do you use the momentum indie and the acceleration indie? Can you post a chart with an entry? I understand if you do not. I am just trying to learn. Handle taught me some stuff once about 5 years ago...but he automates now.

ES

Good question. While I trade off the 1 min when trend scalping, this does come in to play.

Take for example the NQ.

We can safely assume an increase in tick speed is going to produce more volatility on a time based chart. In addition, volume will mostly be higher than normal except during contract rollovers and certain holidays. Therefore, i have the rationale that the market is actually less liquid at each individual price level.

So in regards to my trading, while each wave might not have a tradable s/r area, if it does, i make allowances for price to blow through this level more than average while still being a viable trade. Therefore, both stops and targets normally are increased. Deep retraces are most dangerous in this environment if I’m attempting a 3rd retrace in a trend (after 5 points in the Elliot wave) or if the move from A down to B up is 6 or more up bars and far exceeds normal wavelength.

In normal p/a environment 3 ticks in Es and 2 points in nq are good allowances for a move through s/r. Higher volatility is more.

Sometimes I even have to drop down to smaller time frames like back in February, but that comes with a decrease in contract size

 

[SteveH]

The more complicated the descriptions of what to do get, the higher the likelihood that the person dispensing the advice is risking $1 to make $1 and has to be right 65-70% of the time long-term.

 

[padutrader]

How to differentiate a pullback vs a trend change? Usually it is too late by the time it is visually apparent.

many times it is
a trend change is not a moment it is a process.

but sometimes if you count the bars in the pull back and it exceeds 5-6 then the trend may be weakening.

 

[padutrader]

Trade small fast pull backs bravely, slow moves generally continue ie change trend.

YES
many traders hesitate to trade fast markets thinking that fast markets will not last.
the reality may be exactly the opposite

 

[Turveyd]

YES
many traders hesitate to trade fast markets thinking that fast markets will not last.
the reality may be exactly the opposite

It's all set up to make us worry Fear is the mind killer, to make us despite knowing what we should do, in the heat of trading we still do the exact wrong thing.

 

[EsKiller]

The more complicated the descriptions of what to do get, the higher the likelihood that the person dispensing the advice is risking $1 to make $1 and has to be right 65-70% of the time long-term.

You sound like this is an impossible feat. For the record, my profit target and risk isn't static. But many trades are indeed 1:1. Some are 2:1, and some are less than 1:1. 65-70 is hard, but so is becoming a pro athlete. Takes work and study. Master the craft.

To electricsavant, I dont know who or what handle is, but I am not interesting in posting charts at the moment. Perhaps a later time.

 

[schweiz]

To me scalping and trending markets are a contradiction.
Scalping belongs to non trending markets for me.
If markets trend I trade the trend, scalping makes me miss big profits because of taking profits much too early.