when you go to your larger time frame when you are taking these trades you you can simply see like you've got let's do it like this and let's color this one [Music] let's go a nice blue on this one something vivid and bright yeah okay like that so you can simply see where the leg of your move is laddering right on larger time frames and the larger time frames are going to lead to the larger bounces right so you have to keep that in mind when you're scalping you ladder off there you never actually back attack a lake here which which is kind of nice and you ladder off here and you just continue this ladder so there may be positions and and situations where you do take scalp trades you get kind of liquidated a little out of one because you weren't paying attention to the larger trade it's kind of that pull between being greedy and not being greedy enough right like you can't just assume that five-minute candles just because you're scalping that doesn't mean there's other trades going on right like let's use this for an example yes you were laddering against your target but what happened here right you have an inverse level here it's on a smaller time frame you were continuously hitting uh this level here or this i guess the would have started right here one anyways one of these two candles is fine you could even just use this one you have this ladder forming and you did hit a larger inverse level so it pulled back and it stabilized against the even larger so let's talk about that for a second this is a 15-minute level or a 5-minute level or whatever it is looks like a 15-minute level here find the actual valley yeah it's right here so this is a 15-minute level right so a 15-minute level is going to either be in a pandora's box on the 15-minute or it's going to stabilize against the hourly if a 15-minute level breaks the hourly level it's going to go and crush the move right even the four-hour candle here this is another good indication that this can continue to ladder as long as it doesn't touch the leg of the move just like it had the leg of the move here this candle here didn't touch it so it was a great position to be in right it was a great spot to sit there and say oh this is a beautiful spot to enter a swing trade i made one percent there and then you can short it here off this level just like we talked about you can reshort this and say oh i can make another two percent on the way down right so this is that those swing trades that we're talking about these uh bigger levels that we should be looking at oh it starts as a swing trade do we want to turn into a scalp if it continues to hold this ladder here simply turn it into a scalp trade exit your position relong it right and then here we are now and again what do we have for levels here we have this here which ends up being a short you know as long as you can continue to hold this level you could even get really greedy and go right here the difference between 80 383 and 83.94 i don't think it's really worth it i don't think for the few dollars it's worth it there especially when you knife catch it once and you're pulling back like that it's not really worth it so so you simply have the re-entry here yeah this is not worth it and this can't be worth it 83.83 you simply have this here this is the valley here that it breaks out of simply going to move up off that and and i think the rest is pretty self-explanatory here you go up up and away right and then so fine you have your targets up here that you hit rate here kind of the greediest level again greediest hold level on both sides right short against that open it with the intention to be in in a swing trade and turn it into a scalp trade if if the move is stabilizing like you can see it stabilizes here you can see it stabilizes here so you have to get out and turn this into a scalp you can't you can't this is a perfect example of okay hey look we have an inverse level the inverse level is not rejecting the move it's holding a very high range it's not rejecting the move it's actually going to push right through it right it's just a matter of time here like this this is this is another big clue right here right you have the ladder starts here right oh no that's not what we want you have the ladder starts right here let's take off that magnet tool it's kind of messing us up right now and good old magnet tool back to the original days you have the ladder here it moves from there to here so you you are laddering up so this move is telling you like hey look you're going to break up and you're running out of time to get in then i'm assuming you have what looks like an origin right here or a larger inverse here i'm going to say this is the inverse right here well i haven't really dissected this move too much so this is the inverse or the origin here again another short target is it gonna hold its range yes or no is it gonna start laddering up after holding its range then it's gonna invalidate the the pullback right now something like this right here like this to this at first that breaks now you have this to this once this breaks the move is probably gone if it continues to hold its range it has a huge pullback there absolutely massive i'm not really sure what happened there but anyways they're just going to continue on it breaks its trend and it's gone right so this would have been a great spot to so where do you exit this swing trade so you're here the move is pulling back it pulls back like how do you capture the full amount here this would have been probably pretty tricky i probably would have only captured it i would have looked at this move i would have been in my so this is a little different here so you open your short here as a swing trade looking to possibly turn it into a scalp that's exactly what happens and you turn it into a scalp here you hit your next target you turn this into a swing trade you don't actually come back and hit this level so i wouldn't be exiting my trade my position trade here not sorry not position i wouldn't be exiting my swing trade here until i broke this trend once this trend is formed you're already starting to ladder down you ladder from here to here to here to here to here you're already laddering down so you've created a trend and until you break that trend there's no there's no point so where do you take profits here this is you know the kind of the definition between swing and scalp so what you could say is the leg of the move is right here you're going to have some leg of a move right here so so the greediest spot to exit this short would be inside that leg somewhere so it actually would have been on this dotted level that we have right now which would be something inside of here it's basically the same up so you could have exited the short there and then relonged it which is actually perfectly what happened you just missed quite a big chunk here yeah you missed quite a big chunk you missed an additional point 67 points so that's that's pretty big however that one would have been pretty hard to catch that's a knife catch it's i'm wondering if there's a trend there that showed us what that was i have this here right let's uh let's do a little bit of trend work here see if there's a trend there that we were supposed to catch so you'd be from here to here yeah so this is a trend that we were supposed to catch that's kind of what i was assuming oh trading view i hope somebody fixes the software one day it's not very fun here to here and that would have been your knife catch on trend there so there is a trend there that um would have got you most of those points at least half of them so you could have caught trend stabilized against trend and that's fine i probably wouldn't have done that i probably would have just taken this level here but hey profits are profits and this is you know a great trading routine so you guys can now see and understand the difference between scalping and the difference between swing trading and position trading and how we are supposed to be doing it and scalping is no different right like we just taking our smart levels taking trades against them turning them into position trades when they need to be positioned sorry not position trades turning them into i keep making those mistakes here taking scalp trades and turning them into swing trades when applicable more often though a scalp trade is something that we are very aware of we're saying oh we're catching a knife we're going to scalp this level we're going to be in this trade very for a very short period of time we don't know if it's going to fail or go up so that's the difference right between a swing trade and a scalp is a scalp is very unknown what it's going to do it's going to catch a falling knife somewhere and you're going to want to be out of it pretty quickly because it's going to have a very very large bounce right or you're going to be buying a trend break and it's going to have a quick move up those are more swing trades when you're buying breaking trend but they can be scalp trades you can enter a swing trade and turn it into a scalp trade but there are some scalp trades you simply don't want to turn into swing trades like catching a falling knife on a first test so just going back to this first trade that we took which was right here let's use a replayer tool for this one oops oh i kind of missed the move and just let it kind of lay out here ah that's fine we can just re-enter the right here this is like the perfect example of you have your level that was from back here that we identified what was it this one here come on or is it this here i believe it was this here right there's some level back here that we identified this it was this yeah what was this i'm not sure we'd have to go into the replay and look but anyways we catch a falling knife have this rather large bounce off of this level and it can be up to here it can be right there you have to make that decision right this is a very clear cut trade right you hit your level you come up you pull against an inverse this could just continuously move down forever this is why we don't want to turn scalps into swing trades because this could just go here and just pull right back down it could have a huge pull pull down the only way it's going to start moving up is if it stabilizes off some levels in here right and so that's going to be a pretty dramatic result when it stabilizes there so you don't want to turn scalps into swing trades rather you want to let your scalps be your scalps let them pull back and stabilize like this and then turn it into a swing trade or a swing trade that looks like another scalp right like you would enter this here and you'd say oh this looks perfect to enter here we stabilize the move we're gonna at least pull up to one of the inverse levels here which happens there you have a pullback and then you re-enter because you're still laddering here there there's the next ladder and then you uh look for the next push-up and it happens there and you hit your inverse level there and you pull back so that now you're going to add your short again as as a scalp that could possibly be a swing trade or entering it as a swing trade i should say you ladder here you're gonna look for the uh the next entry here and you're gone right so quite straightforward here what what we're doing in this in this trade very very straightforward not a lot of risk in doing this as long as you know what you're doing and you know how to take these trades there's not a lot of risk in these levels like there's just not if you if you manage your bankroll properly if you understand the difference of when you should be position trading if you understand the difference of when you should be scalping and you understand the difference of when you should be swing trading the trick is more about i don't want to call it a system the trick is more about understanding why we trade the way we do i guess you can call it a system i don't know i don't care call whatever you want i guess i don't like that word but that's just an egotistical thing for me the way in which we trade is more important than sometimes the technicals because the technicals are are quite straightforward well the technicals up to this point are quite straightforward there's other stuff that i haven't taught anybody yet that's actually extremely advanced but the technicals up to this point are very straightforward and sometimes there's smarter traders who understand how to trade better and bankroll management property right like this is a different part of our trading it's not how do we draw technicals and how do we react to them in a perfect world right like though that's nice we can react to our technicals in a perfect world and they'll give us the good trades our technicals will give us the spots to to take these trades but unless we know how and why we're taking them and and where they're going unless we know how to manage the trades like trade management unless we know how to do bankroll management and trade management unless we know that there's not really any point to being in these trades right like there's there's just not a point to it there's technical analysis and then there's procedural which is the way in which we do things so procedural analysis this would be a part of it this would be a part of you know understanding procedures better and knowing what scalps are and how to scalp and the amounts we use and why we use the amounts that we we are doing where to take from the market more risk and smarter trades and get these bigger swings right it's uh it's all part of procedural analysis and procedural the perfection of procedural analysis right so yeah that's not a term anywhere by the way i made that up procedural analysis just like i made up my other term comparative analysis which is butterfly effect which is not you know we're not talking about that today but um yeah procedural analysis and technical analysis mixed together is a huge advantage for for any trader as you guys can see so all right on the next one