Scalping Technique For Day Trading Using Price Action

Price action describes the characteristics of a security’s price movements. This movement is quite often analyzed with respect to price changes in the recent past. In simple terms, price action is a trading technique that allows a trader to read the market and make subjective trading decisions based on the recent and actual price movements, rather than relying solely on technical indicators.

The only people who know where the market is heading are institutions. They are the ones who make the market move and our job as retail traders is to follow their footsteps and get the piece of their movement. As price action traders we need to find the most profitable ways to enter trades. The highest probability setups are 2nd entries, its variations and confirmations setups at the key entry points.

Free Trading Training Content

Date July 19 2023

Time frame - 2000 tick chart
Instrument - S&P 500 ES Futures
Indicator(Supportive) - 21 bar EMA

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[tsondang]

love your amazing educational citation about technical techniques, thank you

[AnthonysTradingChannel]

I enjoyed watching your video, theres always something to learn.

[anthonyfontanetta]

11:30 (in the video, not in real time) seemed like a good opportunity while I watching the price action during the day to load up for the downwards direction, was waiting for the breakout but the complete congestion made it obvious that there was a huge struggle during that time.

[huikelvin]

Thank you Thomas, thats amazing content, just curious if I am not able to have 2000 ticks chart, what timeframe (1, 2, 5mins) best resemble that?

[CD]

Awesome, thanks for your content! As complete beginner please dont judge me too hard; Does anyone know if he's using 5min timeframe and 50 EMA in this video?

[mem]

Amazing video, one question I have however, how do engulfing entries work? are you supposed to enter when it breaks the previous bar or enter on the fully formed engulfing bar? Is it different for certain high probability setups like HL/LH and failed second entries?

Examples:
HL - @ 6:00
LH - @ 14:00

(This would be a good video idea similar to the inside bar video if possible) 🙂

[ChompskyChompChomp]

Thank you for the videos. Been summer trading for sure.
B/E day for me. Got a few tick deeper fill on that double trap and it spiked down into my TP before I could move to 8 ticks from 6. Guess I got lucky.

[zackbyzker]

Hello thomas, i dont get why you (sometimes) consider a 2el or 2es without the proper count. For example: you considered it a 2es at 4:36 without the candle closing below the previous candles low.

[prezidentas]

The key idea of the video is to use price action and confirmation setups to identify entry points and trends in day trading, while also being cautious of congested markets and poor price action signals.

1. 00:00 📈 Wait for a pullback to the key entry point and a trigger before entering a long position in the bullish market structure.
1.1 The market structure indicates a bullish rally, and the goal is to find the appropriate channel to trade, but it is not yet time to go long.
1.2 Look for a high probability setup of a pullback to the key entry point, such as a second entry long with a significant gap between the body and the EMA.
1.3 Be patient and wait for a trigger before entering a long position, as the price action is still sideways and there is no break above the signal bar high.

2. 02:31 📈 Wait for price to break out and test the breakout area before buying in a congested market, indicating presence of buyers and potential for new highs.
2.1 When there is congestion in the market, it is best to wait for the price to break out and then come back to test the breakout area before buying, as this indicates that buyers are present and new highs may be reached.
2.2 Price action is breaking and there is a second entry short, but the speaker is not interested in selling because the bias is bullish and they are looking for a new extreme to go long.

3. 04:04 📈 EMA support and key levels are crucial for day trading with price action, using channels to time entries and stay on the right side of the market, while a strong high low and bullish close above the EMA suggest a potential long trade, but a late entry for a short trade is not advised.
3.1 EMA support and key levels are important for day trading using price action, and drawing channels can help time entries and stay on the right side of the market.
3.2 The strong high low and bullish close above the EMA indicate a potential long trade, while a late entry for a short trade is not recommended.

4. 06:24 📉 Price action caused a sell-off, leading to a new market structure; the speaker discusses a scalping technique for day trading using price action, emphasizing the need for confirmation setups and adapting to unique price actions.
4.1 Price action suddenly caused a massive sell-off in the market, leading to the establishment of a new market structure.
4.2 The speaker discusses a scalping technique for day trading using price action, highlighting the importance of waiting for confirmation setups and adapting to unique price actions.

5. 08:43 📈 The speaker analyzes price action and identifies a potential uptrend, but decides not to take a secondary long and observes a double trap that confirms the validity of the uptrend, emphasizing the importance of entry points, stop loss, and identifying trends in a scalping technique for day trading using price action.
5.1 The speaker analyzes price action and identifies a potential uptrend based on a strong push above the EMA, but decides not to take a secondary long due to a doji and a gap, and observes a double trap that confirms the validity of the uptrend.
5.2 The speaker discusses a scalping technique for day trading using price action, emphasizing the importance of entry points, stop loss, and identifying trends.

6. 11:06 📉 The market is congested and struggling to break higher, so it's best to avoid going long and instead follow the short and downtrend channels for better navigation.


7. 12:04 📝 The speaker discusses the difficulty of finding second entry shorts and the need to reset the count when a significant move down occurs, analyzes price action and identifies a triple test pattern, and advises to avoid taking any setups in the current market conditions due to a lack of favorable trends and poor price action signals.
7.1 The speaker discusses the difficulty of finding second entry shorts and the need to reset the count when a significant move down occurs, as there are only first entry shorts available.
7.2 The speaker analyzes price action and identifies a triple test pattern, confirming a downtrend and indicating a shift from a downtrend to a trading range, with key levels where sellers and buyers are expected to come into play.
7.3 Avoid taking any setups in the current market conditions due to a lack of favorable trends and poor price action signals.

8. 15:05 📈 The speaker emphasizes the significance of rejections and bearish bias in day trading, using price action to identify entry points and expecting broader corrections and bullish continuation for successful trades.
8.1 The speaker discusses the importance of rejections and bearish bias in day trading, noting that the Bulls are struggling to break high and there is a new high followed by a long pullback.
8.2 One can use price action to identify entry points for day trading, such as waiting for confirmations and drawing trend lines, and expect broader corrections and bullish continuation for successful trades.
8.3 The speaker discusses a scalp trade opportunity, the importance of being patient, following shortening channels, and the need to stay on the right side of the market.

[letruongquy]

Hi Thomas, does price action also work well on gold XAUUSD?

[Tyreze]

question Im trading stock options on webull and cant use 2000 tick chart what tick chart could i use instead?

[lievinstonemmeli]

Please specify the time frame where you use the strategy of a trendline

[lemagicien]

I have a question regarding F2ES and F2EL. When you're above EMA why are you looking for F2ES and vice versa? I thought when you're above EMA you look for 2EL and below, 2ES.

[youssefouahmani]

06:13 I took this setup quick scalp 6ticks

[Markiplier]

I will be forever grateful to you, you changed my entire life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Mrs Rebecca Hickman

[prezidentas]

Key insights

💰 "I want to buy a high probability setup which is going to be a pullback to the key entry point."
📈 "When price action frees itself from congestion and holds the breakout area, it indicates that buyers are in the market and new extremes will be created."
📈 "It's important for me to keep drawing these channels okay because you can see. They will keep you on the right of the market and they will help you time the engine better."
📉 The speaker mentions a sudden and massive sell-off in the market that occurred within two minutes, highlighting the unpredictable nature of price action in day trading.
⏳ The presence of a double trap confirms two key entry points (EMA and another confirmation), suggesting that the uptrend is valid and may trigger if there is a break above a bullish bar.
📉 The speaker emphasizes the importance of waiting for second entry shorts and a pullback before entering a trade, highlighting the need for patience and strategic decision-making in scalping.
🔄 The speaker highlights the significance of observing market cycle shifts and the development from a downtrend into a trading range, noting the importance of flat EMAs and consistent price swings in predicting key levels.
💹 The transcript suggests that there are specific signals and indicators to look for when identifying potential entry and exit points in scalping techniques for day trading.