Trading, My guide
Cat Speed Scalping:
Info:
B.o.s: A when I say wait for b.o.s it means to wait for a positive candle that
“engulfs” or surpasses the top of the last candle/negative candle.
This candle passes the previous pullback so I consider it a B.o.s.
High liquidity zones/ important areas/ high intreats areas: This is defined as an
area that has previously in a price trend been a point of reverse or consolidation.
The point of avoiding these areas is to remove the chance of getting stuck in a
consolidation trade or our trade reversing. These areas can be big or small.
This could be a high interest point as there was 2 bounces so we would not trade
near that. But we would trade up and down in-between because of the previous
clean trends with not much resistance.
Clean trend/Trend:A trend is defined as an upward or downward movement.
We have the trend near where we are trading then we have mini trends inside it
that are where we make our trades. Anything that is consistently going up down
up down and staying in a certain range is consolidation.
A clean trend is when we have consistent positive candles with only small trend
pullbacks.
A non clean trend would be this:
Parts of the trend can be clean and some can be non but we trade only in the
clean parts where it is direct with nice clean pullbacks.
Momentum candle: A momentum candle is a candle that engulfs or shows signs of
upward momentum. This could be an hammer engulfing or just 3 candles with
barely and wicks in a row.
Everything in this strategy also goes for downward and negative momentum as it
does positive.
Optimal settings:
Tick chart: 300 Ticks. This is so you see 1 white candle and shows stronger price
movements. If you were to use 100 Ticks then it would be 3+ white candles and
provide false signals.
Atr: I set Atr indicator to 5 because I use the last 3 candles up + the pullback and
b.o.s (expected move). 3 works too but I prefer 5.
Position: I take the atr value and x it by 4 so if it’s 3 I use 12 tp and 6 sl. So the tp
should be 2 candles then a pullback would happen(expected result). The sl is
about 1 candle because at that point I know the scalp will have a pullback and
could maybe enter lower. I trade about 1 hour after open at 12 tp and 6 sl but it
changes a bit throughout the day. High volatility(open): 20:10 or 18:9. Mid
volatility: 16:8 14:7. Low volatility: 12:6 10:5.
1:Mark out high liquidity zones with random fluctuations and avoid those zones.
We trade the clean trends.
2: Find a trend. Doesn’t have to be huge.
3: Wait for a trend then pullback. Previous trends are usually a 1:3 pullback
ratio( So at least 3 positive candles and 1 negative(If more negative candles then
wait for more confirmation or just a good B.o.s (Break of structure)))
4: Enter after the b.o.s and momentum candle
Example 1:
So first we see the high movement areas so we don’t wanna trade near those.
We see some purple(Up) candles then 1 white(down) and a grey(no move). Then
we see another white. So we would look for 1 big candle breaking the peak or 2
that break the peak. Preferably 2-3.
We see a huge candle and enter the trade.
Okay so we got a nice purple then a white. Then another purple. These two
candles showed weakness so most likely we know it’s a loss. Purple candle dips
and we lose the trade. If you want you could put it so wicks don’t stop you out(I’ll
look into it for the future). Maybe if it was realtime we could have maybe had a
different atr not stopping us out.
Example 2:
We see the high intrest areas and a nice white candle above one(good).
We wait and see a purple candle(DO NOT ENTER HERE) We wait for the
B.O.S(Break of structure). We wait and see a nice purple and enter the trade at the
top. Win.
Example 3:
Marked out our interest points.
See a white candle with large Wik( It can show strong power to upside or downside
depends on conditions)
See the B.o.s candle and enter the trade.
Hits profit target for a win!
Example 4:
No interesting areas previously( Its a big uptrend). We see a nice white hammer.
Enter the trade on the next B.o.s and it’s a good trade! Atr stop loss almost gets
hit but as it’s a good b.o.s it continues up.
Tips:
1: I personally wouldn’t enter this trade because previously we got 2 white candles
and after it doesn’t b.o.s correctly and instead there is a tiny white candle after.
2: I would not enter from the first multi white candle pullback but I Would enter
the second one as there is a nice hammer+ we got a 2 candle b.o.s.
3: I wouldn’t enter this as I see lots of whites sprinkled in previously. Otherwise I
would be a good trade but I would enter 1 candle after b.o.s because it’s a big
pullback.
4: This would be a decent trade only decent because of the previous big
pullback . I see a momentum candle before making it a valid signal and we just
have a small white. Enter after 2 candles as the first one doesn’t break then it’s a
great trade.
Tip: I like it to have a steady build up showing strength cause If there is some
random whites in the mix it makes my signals more weak as it could have selling
interest.