Scalping Model and Trading Strategy Overview

Oct 12, 2024

ICT Mentorship: Price Action Model No. 12

Overview

  • Focus: Scalping model aiming for 20 pips per trade.
  • Key Concepts:
    • Daily Range Expansion
    • Order Blocks
    • Fair Value Gap
    • Internal Range Liquidity
  • Pattern: Internal range to 20 pip price runs.

Key Elements of the Model

Daily Range Expansion

  • Identify probable direction of the daily bar/candle.
  • Focus on order blocks with fair value gaps.

Order Blocks

  • Wait for an order block to form before an expansion swing.
  • A valid order block may not have a fair value gap but should be part of an initial expansion.

Fair Value Gap (FVG)

  • Not necessarily linked to or close to an order block.
  • Model shows finding FVGs in price runs.
  • Entry is facilitated by internal range liquidity pools.

Scalping Framework

  • Example used: Euro Dollar on 5-minute charts.
  • Look for a directional bias (e.g., bullish order block).
  • Expansion swing is followed by looking for FVG.

Trading Strategy

  • Order block forms, followed by an expansion swing.
  • Look for FVG in the middle of price swings.
  • Entry uses the FVG for a 20 pip price run.
  • Scalable to larger time frames for bigger pip gains.

Examples

Example 1: Euro Dollar

  • Down close candle with absence of FVG.
  • Wait for price to retest the order block and create an expansion swing.
  • Find and use FVG for entry.

Example 2: Guppy (GBP/JPY)

  • Last two up close candles form an order block.
  • Price retests order block and creates expansion swing.
  • Identify FVG for entry.

Example 3: Cable (GBP/USD)

  • Up close candle forms a bearish order block.
  • Expansion swing creates FVG.
  • Entry is made at FVG for a 20 pip run.

Additional Insights

  • Model can be applied to daily charts and other timeframes.
  • Useful for identifying additional run potential beyond 20 pips.
  • Can be integrated with larger time frame models for broader trades.

Conclusion

  • Broad applicability across different timeframes and asset classes.
  • Low-risk entry strategy with potential for high probability trades.
  • Training model for real-time application.
  • Will be expanded upon in future sessions for detailed trading plans.

Note: This model is a part of a broader educational series, integrating multiple strategies for comprehensive trading insights.