Example Set-Ups

Noted below are a few chart examples of the types of trades I look for on an intraday basis. 

NB: All sets ups are conditional on the context for the day. Nothing works in isolation to the environment you are trading. Know the day - know the play!

Example 1:  EurUsd - Mon Morning Trade. Look for Friday high to act as Resistance. I call it the Monday trade but in reality it can happen any day. This is a H1 example where the H1 high close on the Friday was the key. Checking on the lower time frames gave a 3 tap entry at the level as the H1 could not be broken.

Example 2: Eurusd - Intraday PA trade. A set-up emerged as an intraday inverse H & S pattern. Patterns have to be taken in context but the price action on the lower time frames usually gives you the chance to make up to 20 pips for a quick scalp trade. 

Example 3: Eurusd - A full days Price Action Trading. The chart below shows how I read the pa during the day to frame my scalp trades. Previous day, week highs and lows form the basis of S & R along with intraday S & R as it develops. 

Example 4: Dax -An example of daily setups. The chart below shows how I read the pa during the day to frame my scalp trades on the Dax.

Example 5: Dax - Scalping the M1 chart. One of my ´go to´ setups on Dax is when we get a clearly defined range from the open which forms a ´mid line´ scalp level. Btw it's only a go-to set-up for no other reason than it happens so often! The example below shows how the 50% Fib created a simple level intraday to scalp from. The way to start to assess these types of setups is to wait for a clear high and low to form on the day after the RTH open, pull a Fib on it and be prepared for what happens. These levels are not all at the 50% and it could form at a clear structural level from overnight or during the day. The key point is to watch for the price action to show you where a scalp level might form.  

Example 6: Dax - Using the Initial Balance for intraday trades. In this example below the Initial Balance (IB) is highlighted in blue. The IB is the hour before the Dax Cash Open and the start of the RTH session. The chart shows how the IB was broken at the open and provided a chance to get long. The high of the IB then acted as Support for a number of other long scalp entries. We also had a higher time frame level at 700 which also provided a good short entry.  

Example 7: Dax - Cash Gap trades.  The example below shows the previous day´s cash close as a blue dotted line and the red dotted horizontal line is a previous close which has yet to be filled. Of course, there is no guarantee gaps (cash or futures) will be closed although the majority are over time but having these gaps noted on your chart is essential to give you the complete picture of the structure of the chart. As a rule of thumb I use gaps mainly as a target but in some instances they make good fade trades themselves even if for scalps only. This particular example had price action pushing down from the RTH open which improved the chances of the gap being filled at some point during the session. We had a futures gap also (red rectangle) which was filled and a strong push lower thereafter bringing the cash gap into play either as a target if you were short or a fade scalp. If you weren't confident in trading the cash gap level in itself you could have waited for the candle to form and as this turned out to be a doji at the level, traded the close of this candle. Either way there was between 50 and 70 pts to be made.         

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Action speaks louder than words but not nearly as often.

Mark Twain

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