T-REX Journal - "Scalping 101"
- Thread starter T-REX
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For many a trader spoting intraday reversal can be difficult if not impossible.
HINT: the 2nd trigger usually represents resistance in an uptrend.
So if you see the market stalling you can go ahead and use it to get short.
If you are not that experienced as a trader then I suggest you stick with the "BIAS/TREND rule"- take longs in an uptrend and shorts in a down trend. Use the 60min chart for direction.
the chart you have included is a great representation of that.
all you had to do was wait for the 2BC setup to occure and get then get long.
Thank you
T-REX
p.s. please re-read below:
2 Bar Charlie System (Screen & Chart set-up)
Tools.
*Use the EOD Swing Vix Indicator.
(Not a necessary component but is very helpful).
*Mark yesterday's High & Low.
*Use the 60min Candlestick chart to find current intra-day trend.
*Use the 5min &/or 1min Candlestick chart to time entry point.
Technical Indicators.
Use a 40-bar EMA.
Use a Stochastic Line Chart (14,3,3 time periods)
Use a MACD Histogram Line Chart (5,40,5 time periods)
Chart Rules.
When the 5 min bar crosses above the 40-bar MA = buy.
When the 5 min bar crosses below the 40-bar MA = sell.
Filters. (Are not necessary but are useful)
(1.) Wait for the low of the 60 min bar
to close above the 40-bar MA = buy.
(2.) Wait for the high of the 60 min bar
to close below the 40-bar MA = sell.
Trade Set ups of the 2 Bar Charlie System
*"Momentum-NEUTRAL" ENTRY Days: Consolidated intra-day plays. These days are more common after a significant rally or sell-off they appear during a brief period of consolidation within the trend. Watch & Wait for the pullback toward Intra-Day SUPPORT/RESISTANCE to be confirmed before placing the buy/sell order especially if the days close is above today's price trigger. See *Trade Entry Rules.
*"BREAK-OUT" ENTRY Days: These days are less common but have a very high accuracy rate and are major trade signals. These types of breakouts tend to be very powerful moves and are typical within the current market trend. Usually, they occur while in a brief consolidation within the current trend after a strong move (but not always). See *Trade Entry Rules.
*"TRENDING" ENTRY Days: These are days were the market is expected to rally after a pullback. See *Trade Entry Rules.
ES Trading Plan (RULES)
*TRADING PLAN ENTRY RULES: for the daily "Trading Plan" ONLY!
Wait until after 9:30am EST before trade entry. Cancel order if not filled by 11:30am EST. NOTE: In a Bullish 40-Day Trend Do Not place the buy stop-limit order if after the open the market is trading above Intra-Day Resistance and or yesterday's High. In a Bearish 40-Day Trend Do Not place the sell stop-limit order if after the open the market is trading below Intra-day Support and or yesterday's Low. Refer to the intra-day 60-min & 5-min charts for a possible reversal of trend signal before placing the trade. The system is on the sidelines unless the entry point is triggered.
(Watch & Wait for support/resistance to be confirmed before entry. On occasion you may have to actually enter on the "BreakOut" or "Resistance/Support" triggers if Support/Resistance is confirmed but either the 1st or 2nd trades are not triggered.
NOTE: ALWAYS trade in the direction of the BIAS/TREND.
If 1st Trade is triggered then use 2nd Trade as a profit target and/or Stop&Reverse.
NOTE: If prices collapse below the âIntra-Day SUPPORTâ then use this level to catch the reversal on the âlongâ side. Likewise if prices rally above the âIntra-Day RESISTANCE then use this level to catch the reversal on the âshortâ side.
*PROFIT TARGET: = 1.25 - 3 points. The profit target is to be used as a guid to either move your stop-loss to breakeven or take profit in uncertain market conditions. You may also use the profit target as a working limit order if you don't have the time to watch the market and would like to take quick profits.
*STOPLOSS: is based on the individuals risk tolerance.
Here is a suggestion (for ES only).
1.25 - 3.00 pts on 1min & 5min bars
7.25+ on swing trades on daily bars.
...........the 2BC SCALP METHOD in a nutshell.
Quote from callmeput:
Thanks T-rex
It´s very nice of you to tell about your strategy. Very rare of course.
And you won´t bill us now, will you?
No charge!
There is absolutely NO reason to charge for what I do here at ET.
The fact that other people can use my strategy to make $$$ is good enough for me. I derive my satisfaction from that.
That is why I post it here at ET.
Sometimes though it becomes impossible to post here as quickly as I would like so that is why I created the "hotlist" so that I could email anyupdates as soon as I get them.
The hotlist contains the exact same info as is posted here in the journal. The hotlist is nothing special though, it is just a special thing that I do for those that ask.
Just PM me your email address and I will add you to it.
The hotlist does contain my own private email address and phone number should you ever feel the need to use it.
Please do not give it out though. I don't want everybody calling me and taking me away from trading so use it sparingly.
Thank you
T-REX
Expect the unexpected today as today IS "take back Friday".
Usually what this means is that if the mkt has been up all week then today will be profit taking. Remember what I said at the begriming of this journal- "profit taking can lead to a total distribution that marks the end of the trend".
Today may or maynot be the day but you still need to be aware that this mkt is headed for a MAJOR correction and in my opinion a TOTAL correction that will take out the lows of 2001, & 2002.
Trade wisely and follow the plan!
Thank you
T-REX
Take back Friday's are a common occurence in this mkt.
Sometimes though the mkt just keeps on going.
Hope you got your shorts in?
mkt gave you a gift this morning but how many of you saw it comming?
Per the above the mkt DID give you enough of a clue as to what was about to come. The 2nd resistance trigger held up nicely today as the mkt just could not get anywhere near it.
You had plenty of opportunity to get short!
Your last opportunity was between 2:20-2:25pm EST.
(See chart).
2BC ROCKS!!!
Sometimes though the mkt just keeps on going.
Hope you got your shorts in?
mkt gave you a gift this morning but how many of you saw it comming?
Per the above the mkt DID give you enough of a clue as to what was about to come. The 2nd resistance trigger held up nicely today as the mkt just could not get anywhere near it.
You had plenty of opportunity to get short!
Your last opportunity was between 2:20-2:25pm EST.
(See chart).
2BC ROCKS!!!
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