okay folks welcome back this is volume two of three for mastering high probability scalping we're focusing on previous day bank liquidity runs alright so we'll be reviewing the daily bias so we everyone knows exactly what should be done and I'm referring to a daily chart here so when we're implementing the daily bias what we're gonna be doing is on a daily chart we're gonna be waiting for a swing high to form and to be broken this will be bullish okay when we see a swing high broken in other words a candle that has a lower
high to the left of it and then lower high to the right of it as seen here okay if at any time in the future its traded through when we have that we have a bullish stage in other words we anticipate a future buying opportunity doesn't mean to buy it right there just means we are now on an alert to wait for a specific criteria criteria is going to be looking for a swing low to form down here okay a swing low again is a candle that has a higher load to the left of it
and a higher load to the right of it again on the daily chart key point here is this swing low should not take out a previous recent swing low okay so if we have this criteria immediately after a heist broken we have the probable optimal trade entry scenario by itself on a daily chart okay doesn't mean it has to line up with a 62 - sometimes at Racing level it just means that we are in effect trading with a higher after breaking a short-term high so we have a break-in market structure a retracement so therefore
the market should have an ability to find momentum on the upside okay when the swing low forms we're going to be anticipating the third candle that is this one here it's high to be rated or traded through the very next day so in other words the next trading day where it opens preferably you want to see it open below the third candle the swing lows high okay so here's your criterion you want to see the swing low form without breaking a previous swing low immediately after a swing high is formed but breaking a previous swing
high ok so again the stage for a bullish scenario is anytime I swing high is broken and traded to a new high expect a retracement wait for a daily swing low to form swing low should be a higher swing load in any recent previous short-term swing low the third candle that makes the swing low that high you want to see the next candle open below that candle is high and then anticipate the market to run through this candle is high we're looking for previous day's highs to be rated each day until a swing high when
a daily forms or price reaches a key support or resistance level and I'll give you an example what that would be well the immediate candle after this particular day's formation may be looking for a bullish scenario okay either in London or the New York scenario to a raid on the previous day's high the very next trading day we would look for the same scenario again looking for reasons to be bullish on a retracement lower going higher reaching for ultimately to this old high this would be an area of resistance okay or if it trades to
that high and through it we'd still maintain looking for bullish scenarios buying looking for previous day's highs to be taken out or if we have price rally up to a degree either at this level or before it in creating a swing high once that forms we have to wait for that swing high to be broke on the upside okay there's going to be a lot of missed opportunities admittedly with this but it gives you a specific criteria on the work within ok employing the daily bias this is when it's bearish and we waiting again on
the daily chart for a swing low on a daily to be broken so we have a swing low here again a daily candle that has a higher low to the left of it and a higher low to the right of it eventually as price trades through this this break in market structure it sets the stage for a bearish market condition okay so we're kind of like alerted to waiting for a sell scenario we wait for a retracement when we get the daily swing high formed the third can look at it makes a swing high we're
going to anticipating that low to be violated the very next trading day key point is we don't want to see this swing high break a previous swing high immediately before the swing low that has broken a previous swing low okay so what we're doing is we're looking for a swing low broken here so now we have the ability to see the market trade to a new a new low then it retraces but will not break a swing high so now we're getting net three quarter back retracement okay so by itself it's like an optimal trade
entry doesn't have to be 260 to 270 I'm searching some level it's better if it does but it doesn't require it you want to see the market trade up until it creates a daily swing high when that third candle forms at its close very next trading day you'll be watching for price to make an attempt to trade through this candles low and that remains the bias each trading day until I swing low forms or we trade down to this old low okay or another signifigant low so again summary its we're looking for a swing low
to form on the daily chart and then it be broken then we're looking for a swing high to form but does not break a recent swing high so here's a swing high that doesn't come back the clear or break a previous swing high when to swing high forms we anticipate the third daily candle in the swing high right here we look for its load to be rated or traded through the following day and we look for the previous day's low to be rated each day until a new swing low on a daily forms or price
reaches a key support resistance level now you're not going to have a set up every single trading day okay I've gotten a lot of emails so far since I've produced a first volume of this three-part series and the common complaint I'm getting is I'm not getting a setup every day and it's not been promised okay if you look at every major that's paired against the dollar you can get about three to four solid setups per week now that means that you're probably not going to get us up every single trading day chances are one pair
among all the ones that are available will provide you a set up to study so you can practice in your demo account with it the emphasis is for you to remember that you'd only need about 25 pips or so per week and if you risk 2% of your account and it may be high admittedly for some of you but if you have grown in your understanding about what I'm teaching and you're willing to risk 2% it takes a little bit less than 25 pips per week to double your or make 6% compounded monthly and I
think that's the objective that folks should be looking for when you're new because it's realistic it's low but yet it still doubles the account over the course of a twelvemonth year so if we're looking for one good set up that would yield that 25 pips or so you only need one scalp one set up that does that now I started the current teaching week on Twitter kind of building the idea of making 50 pips per week if you frame your scalps in such a way that it allows you to aim for 25 pips you only
really need to set up for a week don't you now I like that model personally because it's very close to what I do as a short-term or intraday trader I know the likelihood is I want to be trading on Tuesdays and Wednesdays if I can get my entire weekly objective which is 50 to 75 pips per week if I can get that done in one day then I won't do any more trading after that regardless of what day of the week it is but usually I hone in on Tuesday and Wednesday because they're primarily the
best days whether bullish or bearish if it's bullish for the week then I'm looking for the weekly low to form around Tuesday or Wednesday is New York open if I can anticipate a lower close or weekly bearish candle I'm shooting with an expectation that we're gonna be seeing lower prices by Friday's close relative to Sunday's opening then I'll be looking for Tuesday or Wednesday --zz price action to create the high of the week so if I can train and sync with that idea it also formulates a lot more conviction and confidence behind the setups that
I'm looking to trade especially with what's being described here it's a rather simplistic approach it may have been an oversimplification on my part by way of creating this diagram but from an internal standpoint how I view the market place this is what I'm looking for so if I see them daily chart chances are the daily chart will probably sustain the move for a few days and you'll only need one trading day okay so if you having a scenario that's bullish or bearish relative to what I just described here so far in this video chances are
you you're probably gonna have one day's worth of momentum and that's all you need so every single pair does not move lockstep to one another they're not always moving in tandem so what may be a good parent trade today may not be a pair that's really good to trade tomorrow but another pair may move in equal or better fashion in other words the setups are plenty but you have to allow them to be presented in price action from the daily chart and then not forcing it let's take a look over at the charts I'll give
you an example of what it looks like and we can use the kill zones okay we're looking at the table this is a daily chart this stroll through just family random place it doesn't make a difference where we start out but I want you to take a look at the price action here and we're going to look at this swing low right here and it's on the heels of a previous short-term high okay so we have a short-term high here lower high to the left lower high to the right highest high in the middle it
breaks that okay so now we're on a buy watch for scalping this is a swing high that's broken and we have to wait for a swing low to form after this is broken so we're gonna be anticipating a retracement after this run-up says price starts to drop down we have a preliminary swing low here okay so this candle is the third one we need to make sure we wait for price to trade through this candle is high the very next day it doesn't do that okay now we have another candle form a potential swing low
here so this candle here we have to wait for this candle is high to be traded through very next candle it doesn't do it it does it here so now we can be a buyer here with a Scout running previous day's high which is this one okay so one July 24th 2017 that high again coming in at 130 57 that's where the liquidity run is going to be right there this candle on the 25th of July is where we'll be looking for the set up right there okay and we're going to drop down into a
smaller time frame we use a 15-minute time frame okay and I'll scrunch this up the day dividers in you guys can see it so previous day's high is right here so I'll put a horizontal line on the chart to facilitate that okay so here's where the liquidity is we're running for 30 57 okay this day here we're looking for a scenario to get long to run that liquidy pool okay and we have this again it's the liquidly poor wrist we're reaching for previous day's high on this trading day when I use the market sessions I'm
looking for London setups and newer setups primarily this is a London session low and I'll let you see that here that's in London and we're gonna use that as I mentioned in the volume one I use session highs and lows and this is the highest portion of the day in terms of a 15 minute candle you just put it right here you guys can see it so I'm using this one and this one framing the entire price moon so as price starts this day here I'm not concerned about anything until it gets down into the
optimal trade entry 62% tracing level respectively 70.5 and 79% okay you can see it price trades it hits it here this candle comes in exactly 9:45 that's London and we're going into a nice run into previous day's high okay so you can see that was a nice little scalp it offered as much as 10 20 30 40 pips to get to the high and if we look for 10 to 20 pips of a sweep above this high it takes us 10 20 here so 20 pips 40 pips 60 pips 70 pips or so in terms
of potential price range that in itself is it for the week for me that would be it why wouldn't you do anything else and it's hard to believe but that's how I operate I don't look for a whole lot of setups per week cuz I'm content with you know doing one thing well and there it is now if this were a more conservative approach you could be looking for the long down here based on the alcohol trade entry and reaching just to the old high now if that's the case say you're filled at well just
rounded to one thirty twenty that again is getting out at 57 it's 37 pips or so okay almost 40 pips with us say 40 pips you only need to do one more trade for the week for 10 pips to get a 50 pip net return for the week now there's a lot of folks that will say don't set targets don't set goals for daily or weekly because you don't know what the markets going to do well I would submit that that's partially true we don't know with any assurity what the markets going to do but
we do have pretty strong probabilities of wherever the market may reach for and if we can frame the idea of where we're trying to get in at based on time and price killzone and such a optimal trade entry price and where we're reaching for it doesn't that not offer us a definitive way of determining what could be reasonably expected for that particular setup and if we know that we're looking at intraday setup like this there's typically five days per week unless it's a holiday or the markets are not trading because of some other bank holiday
or whatever we don't want to trade it we can see many instances where 25 to 50 pips is rather easy to get now it's when we get into the I want to make 250 to 500 pips per week then it becomes a little daunting in terms of a task so I think by focusing on 20-25 pips per setup in an aiming for two good ones per week I think 50 pips is a really low hanging fruit reachable achievable and certainly realistic in the scope of a developing trader will you get it every week no will
you get it right out the gate starting using my concepts no but over time you will eventually grow into that in an expectancy for a nice return of 50 pips per week you can frame your entire career on that
