Bar Scalper Trade Setups - Very High Edge trade setups with entry, exit and stop location
In this section, we will learn very high edge trade setups along with entry, exit and stop placement. Let`s try to answer the questions that every trader will go through “before entering into the trade”, “when they are in the trade” and “after exiting the trade”.
This system displays trades all day and tempts you to participate in the market aggressively along with the Trend and reversal trades. All we need is to see the chart and make sure we have the first opposing force at least 4 ticks away from our entry. So we will have at least a 1:1 risk-reward ratio.
Overview of Bar Scalper features:
In the Bar Scalper features, we have seen buyers’ and sellers’ information along with their trade initiated price. Every line that gets displayed on the chart has the probabilities built for that feature. It will get dynamically adjusted to the current market condition.
Understand more about Bar Scalper Features
Bar Scalper System Expectation:
Very High Edge trade, Entry, Exit and Stop
Before entering in the trade:
This system may show us 30 to 40 trades in a day. We don’t need to take all the trades to make money by the end of the day. So, missing trades are quite common and you will need to get used to it. If we are not in the trade, we are not going to lose or gain anything. Perhaps, if you start thinking of one missing trade you will start accumulating your emotional losses. This may cause you to initiate a trade with emotion. Trading along with your “Fear of Missing out a trade” may result in taking large risks and can cause you to take big losses in one trade. We will learn more about this in the Blog.
Wait for the market to come to your Entry.
Our goal is to take many small winning trades with a fixed stop and accumulate the result by the end of the day. So, never expect to make more than 6 to 8 ticks in one trade.
Stop Location:
Normal STOP is 4 to 6 ticks. Do not take any trade that needs more than 6 ticks to STOP and Don’t Move the stop while you are in the trade. Moving stops will give us big losses in the long run.
Trade Entry:
Make sure NO aggressive buyers or sellers are between your entry and Target based on the trade direction. Don’t take more than one trade in the same swing. Don’t move the STOP once it is placed.
Trade with the Trend:
Based on Bar Scalper features, we will consider point 3 in indicator, which is considered as a trend because of achieving targets in that direction.
Entry:
- Entry should be more than four ticks away from the current swing high for LONG or the current Swing Low for SHORT.
- Look for any previous buyer activity for LONG and Seller activity for SHORT or previous swing Low plus a tick for a Long or previous swing high for minus a tick for short.
Black Line: This is where the new buyer or seller showed up. Check the new buyer or new seller indication on the indicator to see whether the black line is a new buyer or seller.
Green line: Previously identified buyer at that price.
Red line: Previous sellers in that price range
Trade against the Trend:
For these trades, we completely ignore the indicator section except the new buyer or seller part.
Entry: We will be looking for multiple buyers or sellers concentrated on the same price or a tick apart. If they are separated more than a tick, don’t consider them for a reversal trade. For these trades, our stop will be 4 ticks from the last seller or buyer that were together.
Key Reversal Price Points:
Short Setup when Buyers are in Control.
If the buyer does not show up within three ticks from the key sell area, there is a higher probability that the market may start going down until it finds a new buyer.
You may wait till the new Seller shows up or new buyer failed to push through.
See the below Examples for short entry, we will discuss more in live videos.
Long Setup when Sellers are in Control.
If the Seller does not show up within three ticks from the key Buy area, there is a higher probability that the market may start going up till it finds a new Seller.
You may wait till new buyer shows up or new seller failed to push through.
See the below Examples for Long entry, we will discuss more in live videos.
