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Day Trade Repetitive Set Ups


As most people who have read my blog pieces and follow me on Twitter know, I am first and foremost a Dax day trader / scalper. While I also regularly trade the NDX and the SPX in the US session, its fair to say I spend most of my time immersed (and to be a scalper ´immersed ´ is an appropriate word) in the 5m & 1m Dax charts constantly watching price action evolve and looking out for opportunities as they arise. Its a tough life but someone's got to do it, right? :).


But there are some everyday trades that I am on the look out for which occur on such a regular basis that as a scalper I nearly always trade them. I say ´nearly´ because context over rides everything in my method of trading and there is nothing in trading which I would say is a must trade every time. Just one of my idiosyncrasies I guess as others might well argue that there are trades that should always be taken - which is fair enough - its just how I roll.


One of these trades is a fade of the overnight / premarket highs or lows. Over time I have found this to be a repetitively high odds scalp trade. What I mean by scalp is to watch the RTH open and if the premarket H or L is broken, I instantly fade it. To my way of thinking it is a scalp not because I always fully exit at a predefined level of profit in points, but because I will always take partials at a low number of points should it go in my direction and always enter with a low level of points risk.


If the opportunity arises, I´m happy to leave runners which could last all day thereby turning my initial scalp into a day trade, but because I have reduced risk usually to BE or better, in my mind its a scalp. In this way I define my scalping based more on risk not on taking many trades through the session in the hope of bagging 5 to 10 points.


Take a look at the last 5 trading days of 2021 on the Dax. On every day the premarket range was tipped out by a few points and then faded back into the range giving plenty of scope and opportunity to manage the trades as desired.


You´ll also notice that on the 27th there wasn´t just a fade of the range short but also a long scalp on a pullback to the range high. The overnight range is always an important level to keep an eye on for day traders and scalpers and, though I shouldn´t need to say this, they don't always work out - but with tight risk - there´s nothing to worry about.




The above chart is the Dax40 15m which allows me to show you the 5 trades all at once. I suggest you open your own charts and drill down to the m5 and m1 charts to get a closer look at the price action.


I have noted the max risk and max return on each day not to suggest I took all of the available profit opportunity more to show how these trades can run. Invariably I leave a large part of the move ´on the table´ but its down to you how you manage them.


There are some other trades I am also always on the look out for; fades, springs and upthrusts at key levels of Support and Resistance; pullbacks to the RTH open and or / structural / fib levels and evolving structural S & R during the day, but I´ll try and cover them in a later blog.


The key point is try and have some pre planned "bankers" in your armoury as it makes life so much easier when you are at the charts all day.


I hope this helps and fires up your interest in looking for some repetitive low hanging fruit of your own.


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