5 Minute Scalping Strategy With Magic Indicator

what’s going on everybody yeah welcome

back to my trading journey in today’s

video

i am going to be showing you guys an

awesome indicator strategy for scalping

so scalp and trading it’s it’s become

very popular and i’ve been getting a lot

of requests

about you know making some videos on

shorter time frames so this is going to

be on a five minute time frame uh great

for scalping forex great for scalping

you know crypto like ethereum bitcoin um

this is also great for scalping the

stock market and and a lot of the

trading that i do is is in the u.s stock

market so i’m going to be showing you

examples and how to set this up using

the qqq uh

as an example the nasdaq

uh five minute chart and uh yeah let’s

let’s get right back into it before i

get started i always have to say right

this is not financial advice i’m not a

financial advisor this is for

educational and information purposes

only so

uh let’s get into it so there’s going to

be two indicators that we’re going to be

using for this and i’m also going to

teach you guys

you know where to put your stop-loss

where to take profit how to set those up

as well as wait till the end of the

video watch till the end because towards

the end i’m also going to show you how

to set up indicators

and alerts

where

it gives you you know you when it gives

you a buy or sell

alert

you know exa you know you’re not just

watching your charts all day long and

you get alerted with that kind of stuff

so i’ll show you guys how to set up

alerts on this as well

and then we’ll backtest it a little bit

i’ll show you guys a few examples and

you know you guys can

drop a comment let me know what you guys

think

all right so let’s get back into it

let’s uh let me go ahead and stop the

replay mode

and let’s go back

to

a live market so here’s the live market

right now right

so there’s gonna be two indicators

you’re gonna be using this one the l

superior kaufman adaptive ma and an ift

combo i’ll show you guys exactly how to

set both of these up and the ch and the

settings to change on these

so when you first log into trading view

and this is one of the best buy sell

indicators on trading views so you guys

definitely need to check this out

let me just x out all of this stuff so

you guys see exactly what your chart is

going to look like when you log into

trading view so the first

indicator that you’re going to add

you’re going to go into indicators

type in l2

perry

and this is going to be the one the l2

perry kaufman adaptive m a right

so you’re going to add that

x out

go into the settings

and go into input

and change the period f from 13 to 11.

okay the next indicator that you’re

gonna add

is called you’re gonna type in

combo

sto

plus

rsi and this is the one that you’re

going to use the inverse

fischer transform combo sdo plus rsi

okay

once you do that

now what exactly are we looking at what

exactly is

the uh confirmations and and trade

signals and stuff like that right that

that are pretty decent to follow

so

the way this this is going to work is

you want to make sure you you get you

get like a buy or sell signal so for

instance this was the i guess this was

the last time that sell signal was

alerted

right because this this right now is the

current market while the market’s open

right now

so when you get a sell signal you want

to the first thing for confirmation is

you got to make sure that the candle if

you’re going short on a position it’s

red not green okay

and

you want the ift combo right here to be

oversold below the green line if it’s

going to be a cell if it’s going to be a

buy i’ll show you an example of that too

right

this one was a this one will be a lot

would would be a loss so we’re not going

to look at this one

but if you want you know if you’re going

for by position you want to get a buy

signal

you want the candle to be green and you

want it to be overbought so you want it

to be above the red line and then i’ll

i’ll show you guys where to put the stop

losses and stuff like that so you guys

get a better idea as well

so

so with this

you all of this stuff lines up and then

the way you’re going to do stop loss and

take profit on these or this is what i

like to do

is put the stop loss right at the line

right right at the intersection line

where you’re getting that buy sell

signal right

and then i like to go on this particular

scalping strategy

i like to go for a two to one profit so

if i’m risking 100 i want to make 200

right

and that’s that’s the you know and i’ll

show you guys some some data on like the

last few trades as well on this

and this this works great

again like i said with scalping forex

scalp and crypto scalping you know the

u.s stock market all of that stuff

um

so now let’s let’s look let’s look at

some trades i’m not going to make this

video too long because then i want to

show you guys how to set up the alerts

as well so let’s let’s take a look at

you know like maybe four or five

examples

and then i’ll show you guys how to set

up the alerts

so on something like this so let’s take

a look at this example so this would

have been a trade

dude

keep pressing the wrong button

and do a short position so say you got

in over here you’re gonna put your stop

loss right at the line

okay

and then let’s do two to one right

so

there you go

there you go this this one would have

been a win it would have it would have

hit right there right when the market

opened

this one

i can already tell this one will be a

loss but i’m still gonna show you guys

not every trade is a win and as a trader

you have to learn that not every trade

will be a win

you have to learn to take your losses so

yeah this one would have hit us hit a

stop loss

let’s go back

let’s look at the

all right so this will be the third

trade

sell signal

red candle which is great

and when you’re on that

it’s oversold great so this will be

this would be a trade

stop loss would be right here at the

line

we’re gonna do two to one

right

yep there we go it would have

the take profit

would have hit right there

all right

let’s look at another one

here’s the

next one

that was this will be a long position

you get a buy signal candle is green

it’s overbought

long position you get started right

there

stop loss will be at the line

we’re going to do two to one

so take for risk to reward will be two

there we go cool what a hit right there

that would have been a win

let’s look at one more

and oh see this is great this this will

also the last two will also show you

guys how trades become invalid okay so

let’s let’s go through this one first

so this will be a short position because

you get a sell signal it’s red and it is

oversold

so you get in

the

the line the cro intersection will be

your stop loss

we’re gonna do

say two to one

come on

all right i’ve gotten on this trade

right here

there you go

all right so this would have hit

take profit right there

before it started going back up

all right now this is how

this is how this stuff becomes these

trades become invalid

yeah you’re getting a buy signal and

it’s overbought but it’s a bearish

candle it’s not a green candle so you’re

not going to take this trade

same thing over here

you’ve got a sell signal

but it’s a bullish candle you’re not

going to take this trade so this makes

it invalid

so for instance with these things that

we went over

one two three

oops

whatever you guys saw what that was

all right

there we go

nope

it was right here

all right so one

two three

four five we went through five examples

one was a loss so 80 win rate of the

five you know out of the last five

trades so even if you’re risking a

hundred dollars to make 200

you know you make you make 800 you lose

a hundred dollars you’re still up 700

off of off of five trades

i think i think that’s great so again

you know you got to pick and choose your

your positions but at the same time you

have to follow these rules

and you know it’s i’m glad that we kind

of ran into

this man i keep moving this

all right anyway i’m going to delete

these anyway

so

you know i’m glad we ran ran into these

two examples because that shows you how

a trade is invalidated if not all three

uh

you know

triggers triggers work all three

confirmations right

so now let me show you guys how to set

up the alert so the alerts are going to

be set up over here in the l2 perry

kaufman adaptive m a

so you’re gonna go click on these three

dots right here where it says more

add alert

and right now and then you’re gonna set

up two alerts so the first alert is

going you’re gonna click only once or

once per bar depending if you want them

over and over and over again

okay

once per bar and then alert on long just

click create once you’re done with that

go back into

you know more

go into alerts and then you’re gonna do

alert on short and that’s how your

alerts are going to be set so whenever a

bar you know

closes that has that meets that gives

you a buy signal they’ll alert you and

this way you guys can see if the other

you know if it’s a bullish candle

bearish candle if it’s oversold or

overbought in the other

indicator and this way you can make your

decision if you want to take that trade

or not okay again now financial advice

just just for information purposes only

and if you guys like this video please

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see you guys on the next one