The purpose of this video is to answer most question you have about scalp trading. First, the question of, “What is scalp trading?” is answered as a way of trading that focuses (without guarantee) on profiting from many small, quick trades.
If you search online, you will find many day trading scalping methods. The Trade Scalper is one such method, whereby signals are conveniently provided as Short (sell) and Long (buy) text notifications on your trading chart. Once one of these signals appear, the idea is to buy or sell based on the signal type and to get in as close as possible to the displayed value.
Trade management based on the ATR (Average True Range) encompasses multiple price action factors. Because the ATR is like a summation of price activity for the last specified number of candles (DayTradeToWin) uses a period value of four (4).
There are rules to manage each DayTradeToWin Trade Scalper trade and they are:
- Target based on ATR
- Stop based on ATR
- Various order types and what may work best in various scenarios
- When to not trade at all (such as low or high volatility and before a news event is expected to occur)
- Order of use in conjunction with other trading methods, such as the Roadmap and Atlas Line
- When it may be wise to stop trading for the day, after consecutive wins or losses
- How much of a profit target and how much of a stop loss
- What to do under evolving market conditions, such as increased or decreased volatility