[00:00] Today I'm going to show you an amazing scalping strategy that takes advantage of the first 90 minutes of the market open. It's called the quick flip scalper. It's repeatable, it's effective and best of all, it is simple.
[00:16] My name is Carl. I've been trading for 20 years. One of the biggest things that I've learned is that the utmost majority of all the money that traders make will take place in the first 90 minutes. For us traders, this is our bread and butter.
[00:29] If you want to increase your chances of becoming a successful trader, you've got to master this market open. And to master it, you've simply got to have the right trading strategy, otherwise it's game over.
[00:42] In today's video, I'm going to show you how to use the quick trip scatter strategy in just three simple steps. I will present it the exact same way it was shown to me back in 2011, and the same way I have taught hundreds of other traders.
[00:55] We have all used it day in and day out to make solid trades for years. Then after explaining the 3-step strategy, I will take that process and I will trade the Quick Clip Scalper in a live market so that you know how to apply it.
[01:10] Let's get started. I love this Quick Clip Scalper. I've built a 15 plus year trading career off of this strategy. Most people I show it to like it as well because it's straightforward and it doesn't require any complex structure.
[01:25] Let's jump into the three steps. Step one is to box the opening range candle. Let me show you how. Open whatever asset you are trading on a 15-minute chart. For this
[01:41] example I'm going to use Nasdaq 100 but it works with any asset. Just make sure it's a 15 minute chart. From there let the first 15 minutes of the market open pass allowing that candle to completely close. Once that candle has closed use
[01:58] the box growing tool to connect the highest price points we see so this very top of the week which says 24 675 we are going to connect that with the lowest
[02:10] price points we see which is 24 502 and we're going to box that range in and and we're going to extend it into the future. And that's all for step one. I told you it was going to be simple.
[02:23] So this is all you need to do. Just box in the high to low range, and then extend it. Now let's move on to step number two, which is a crucial step, and the step is to confirm that this candle is a liquidity candle.
[02:40] Most likely it is, and I will explain why soon. And if it is, we are on to something special. A liquidity candle is a fast, aggressive candle moving up or down. The direction doesn't matter.
[02:53] It's fast, it's aggressive, and it's moving in one direction. But it's more than just a candle. It's an emotional event, and that is where the edge is. When traders worldwide see this, their very first instinct is to chase into that strength or weakness,
[03:10] fearing that they will miss out on that trading opportunity. And that's exactly what these candles and the price movements are designed to do, to pull in inexperienced retail traders to create liquidity for the big institutions to get in and out of their trade.
[03:28] This price movement actually needs to happen in order for those institutions to get in and out of their positions. And that is why you'll see them almost every day. This often involves a stop hump, where the price aggressively moves in one direction to trigger clusters of stop losses from us retail traders.
[03:50] These triggered stops will create a liquidity pool that the large institutions need in order to fill their positions without negatively affecting the price.
[04:02] Without this engineered liquidity, the big players wouldn't be able to execute the trade, at least not efficiently, without negatively affecting their entry and exit levels. The best explanation comes from old-school trader Dr. David Paul.
[04:16] The best trades occur after the masses have been stopped out. That's because the big sellers up there, they can't press the re-button and get in, because there's just not enough liquidity there for them to get in and sign.
[04:30] so they have to in fact engineer a hundred thousand guys like you sir pull you one way your stop loss your pit that in fact sets off a sea of liquidity for them to get in
[04:43] so yeah these candles they are engineered and that is why I like to call them manipulation candles and they happen almost daily so that these big players can get in and out of their trades
[04:55] So the most important thing to understand how this quick-flip scalper takes advantage of this very phenomenon is that when you see these candles, most of the time the candle is reversed.
[05:09] And right there, that's the strategy, that is the edge that we will be using. Now if there is any doubt in your mind whether or not the candle you are looking at is or is not a manipulation candle, let me show you a quick and easy way to figure that out.
[05:21] So what we want to do is to switch to a daily chart of the assets that we are trading. And we're going to add the average true range indicator. You don't have to make any adjustments to it. Just use the default settings of 14 days.
[05:36] This indicator will give us a numerical value. In this case, for NASDAQ, it is 420 points. Let go ahead and make the math a little bit easier and write 400 points What does this 400 points represent Well they represent the average range of Nasdaq 100 in the last 14 days So it either up 400 points or down 400 points
[06:01] on any average day. So the trading range is one of the most important parameters for us as traders, whether you use this QuickTrip scalper or not. Here is what we want to determine back on the 15-minute chart if the size of this candle that we
[06:17] just boxed in is 25% or more of that daily range then it is a manipulation candle. So here's the basic now to figure that out. We take these 400 points right
[06:30] and we multiply it with 25% and you will have 100 points. So if the high of that
[06:43] candle to the low of that candle exceeds 100 points, it is in fact a manipulation candle. So you will see that the very low of this candle is 24,502 points and the
[06:55] very high is 24,675 points. And yeah, that is well outside the 100 points range. So this is definitely a manipulation candle. So one thing to think about is that if it's at 95 points or 90
[07:11] points, let's say that it's around 22, 23%. Don't set the details. You can still use it. But if it's 25% or more, that is a dead giveaway that it's being manipulated. So that's wrapped up step
[07:25] number two which also was pretty simple. Right? Now let's move on to the third and last step which is to make the perfect entry. This is going to be pretty simple
[07:38] too. So here is what we're going to do. We're going to go back to the 15 minute chart and we're going to move it to a smaller time frame and that can be the five minute time frame or anything below that. So we can do three minutes, we can
[07:52] do two minutes and we can even do the one minute time frame. I prefer to use the five minutes because that is what I'm used to and that's what I'm going to use now for the rest of this demonstration. Now from here what you need, which is the
[08:05] most important part of the video, we need one out of two types of candles to appear. They need to appear outside the range, outside the range that we boxed in in step one and I say it's the most important part because if none of these
[08:18] candles appear the price is not ready to be reversed. That movement could actually continue for 20 minutes, 30 minutes, 40 minutes, or an hour, or like the rest of the freaking day, it can just keep on going. And we want one of these two candles to appear,
[08:33] again, outside the box range, and we want them to appear within 90 minutes of the market open. So if that doesn't happen, the opportunity is lost, and we will not take the trade.
[08:45] If you know about the reverse of candlesticks, if you watch some of my old videos, you already know what the two types of candles are. Two candles that I'm going to be looking for are going to be either the hammer or the inverted hammer candle or the bullish or bearish engulfing
[09:01] candle. Here's why these two candles are important and why they must be used in this trade setup. Let's start with the hammer candle on the long side. So this must come after a clear red negative price movement. The confirmation comes from within the wick itself right here.
[09:18] This wick represents that the largest buyer took advantage of that liquidity and the institutions bought into that weakness. And I've said in past videos that you have to think about it this way that if someone with that amount of
[09:32] buying power is going to step in here and buy that bit it's not going to go lower in most cases and that is where the edge is. They're just too big, they are too strong and they have announced their intentions and most likely this price
[09:45] will go higher from here. Again not all the time but most of the time it will. The entry is going to be very simple we're going to wait for the break of the candle and we're going to enter the trade in the opening of the next candle. So we're
[09:58] going to enter the trade here and the stop-loss will be set at the low. The inverted hammer would be something that comes after a clear positive green movement. You would have the wick coming from the top. Again, the confirmation
[10:13] comes from within the wick itself, right here. The entry would be at the break of the next five-minute candle here, and the stop-loss would be put slightly above
[10:26] the high here. Now, the engulfing candles have the exact same significance, but they look different. They are called engulfing because this large candle here fully engulfs the previous smaller candle. For engulfing candles though I like to set the entry
[10:44] level already at the high of the previous candle. So for the bullet engulfing candle I would set my long entry already here at the high of this red candle and I will place the stop-loss at the low of the engulfing candle. And for bearish engulfing candles we enter the short trade already at the
[11:02] low of the previous green candle. So that would be here. And replace the stop loss at the high. So if you didn't follow that, don't worry we're going to go through this step by step now. So let's go ahead and open up the Nasdaq 100 chart again.
[11:17] So the day started with this positive green liquidity candle, which means that we are now looking for negative reversals somewhere above this range. So we're looking for inverted hammers or bearish engulfers above the box range. If
[11:31] If today would have been a negative red liquidity candle, we would instead be looking for positive reversal candlesticks, like the hammer or the bullish engulfing candle And we would look for it below the box range So let see how this day continues So this is on the 15 chart
[11:49] We've confirmed that it's a positive liquidity candle and we have drawn up the box into the future. So we're now going to go into a lower time frame to look for the reversal. I will use the five-minute one.
[12:01] Let's see what happens. We see that the price continues up from here for a couple of candles. It's not ready to be reversed yet, but around here, around 45 minutes after the opening,
[12:13] something happens. You should be seeing what I'm seeing now, which is an inverted hammer candlestick. So the entry would be very straightforward. We would enter the trade here at the break of the next candle.
[12:25] We set the stop above the high, and then we set the target profit at the bottom of the box that we just drawn. So the box that we drew has another purpose than just showing where we are looking for
[12:37] the reversal. It actually gives us two relevant target profit levels. One is the high of the opening and the second one is the low of the opening that I just used. So our trade is set. Let's see how this plays out.
[12:49] By the way, I feel like I just have to mention this. So the win rate is actually higher if you include the 15 minutes prior to the opening. Not all brokers offer prices outside market hours, but if you are interested in that,
[13:01] There's a link to the description to the brokerage that I use. They are called IG. Just register for a CSB account and you can get access to these instruments. So for the next minutes we're just messing around this price level.
[13:15] We're not really going anywhere. We're not hitting the stop loss. But then as you can see the price eventually goes lower. And if we go even further we see that we actually reached the target profit here at the bottom of the range.
[13:27] So it was a successful trade. We enter the trade at 24,872. We put the stop loss at 24,900. We set the target profit at 24,610.
[13:42] So the trade had a 28-point stop loss with a 212-point win. So that's pretty good, right? And this isn't cherry-picked. If we look back, we have this pattern here, too.
[13:55] The day had a negative red liquidity open. it reversed down here and then finished higher. The day before that they had a green open but it reversed and the day before that they had a red open it reversed and it finished green. Almost
[14:09] every time it reverses. So the strategy works great with these liquidity events and they appear because the big institutions need them to enter and exit their positions. Over 255 years of trading
[14:22] history and they are everywhere. Now let me show you how to trade this live. It's already 11 a.m. so I've missed the open but I will be back tomorrow to trade this together with you. Okay good morning guys it's about 10 minutes until the
[14:37] market opens. Remember the steps we are dialing in the 15 minutes opening range we are confirming that is a liquidity candle and we are looking for a reversal
[14:51] candle outside the range. If we don't get these three things today then I will come back tomorrow but if you are watching this it means that I kept it and spoiler alert it means that it is happening today. I forgot to mention this
[15:07] yesterday but these liquidity events are often more prominent in individual stocks than in these big indexes. The indexes often have more base liquidity
[15:19] which means that these manipulation candles are sometimes not needed to the same extent for these big institutions. But as I showed you yesterday, they are there in the big indexes too. With that said, I'm going to trade this today on an individual stock instead.
[15:34] To show you that the QuickFlip scalper works very well on that too, possibly even better. And I think I will do it with the highest volume stock these days, which is NVIDIA. So the market opens in about two minutes.
[15:46] Let's start by finding out what the average true range is. So I'm going to pull up the data chart. I'm going to add the average true range indicator.
[15:58] The average true range is 8.07 bucks. So I will write that down. Let's go back to the 15 minute timeframe.
[16:10] Now the market opens in a couple of seconds. And here we go. So okay, it's opening with a small gap upwards, and now it's moving south.
[16:24] Remember, we are waiting for the candlestick to close before we can confirm that it's a liquidity candle. And for it to be a liquidity candle, it has to be 25% or more of the average true range
[16:38] of the last 14 days. While we wait for the 15-minute candle to close, we could actually already now calculate what that is. Average true range was $8.07 to make it easier, let's say $8.
[16:52] And 25% of that is $2. So that means that if this candle will close with a range that is more than $2, then it is a liquidity candle.
[17:05] Okay, so now it's 30 seconds until this 15-minute candle closes. It's not a perfect looking liquidity candle, as we have this wick here, but I think it's good enough.
[17:17] Preferably we wouldn't have it, but I think it's okay. The range is clearly exceeding 2 bucks though. It's closer to 5 or even 6 bucks. And there it's closed, so it's confirmed that it's a liquidity candle.
[17:30] Okay so now let take the box drawn to connect the highest price point and the lowest price point And then we extend it into the future
[17:44] And I'm only extending it for 75 minutes from here. Because after that, we don't want to enter the trade. So any reversal after these 90 minutes are irrelevant.
[17:58] the only enter trades within the first 90 minutes of the market open. So the low is at 176 and the high is at 182. Okay, so that's the first two steps.
[18:10] There is only one step left and that is to find the reversal. Okay, so this 15 minute opening range that we just made a box out of will be of big significance for the rest of the day. Now the only remaining thing, the last and third step,
[18:23] is to wait for the reversal candle outside of this range. As this liquidity candle was negative, we are looking for one of the two bullish reversal candlesticks at any place below this range. And
[18:38] if you remember, we do that on a lower time frame. So I'm changing the chart down to a five minute time frame. And now we just wait. So if we don't get this reversal candlestick within 90 minutes,
[18:52] then we don't trade it we will get another chance tomorrow so there's nothing to do but to continue rating so some buyers are getting in here but not yet a full reversal I think there are still some big traders that are going to get
[19:07] in here so I suspect we might go even lower okay here's another hammer candle but again the hammer is inside the range which makes it invalid we want to
[19:22] see a hammer candle or a bullish engulfing candle after a strong clear downward movement and below the range okay we continue down from here that's a big red candle and we're now actually outside
[19:37] the range and another big candle if we would get some kind of reversal pattern here down below the range then that's the time to enter the trade. Okay so look at that we have a
[19:51] strong green candle here that could become a engulfing candle but I'm going to trace my limit order entry level here at the high of the red candle at 175.15
[20:05] so if the price goes up to this level it is in fact a bullish engulfing candlestick so that's where we want to enter the trade. Let's see the price is still going
[20:18] up let's see what happens. Okay we got it we're now in the trade I will put the stop-loss down here below the low at 172.5 and I will put the target profit at
[20:37] the top of this range which is at 182.3 so that makes the stop loss around 2.65 bucks the target profit is 7 bucks so that is a with reward ratio of
[20:55] 2.7 or something like that so let's see if this reversal holds true there are no guarantees in trading there are just probabilities and this trade has a high probability of profit. So let's see where it goes. So it's continuing upwards
[21:14] actually. It's still strong. We have a little bit of a hesitation here. Still a long way to the stop loss though. I think this looks pretty good. I think we have some good chances to see this trade go through today. Okay look at that.
[21:30] price is now back in the range and that's promising okay so it's continuing up now we're being going sideways for a while and at this point I would consider
[21:43] just stopping the trade and taking the win and call it a day as we're so close to the target profit already but just for the sake of the video I'm going to stay in the trade and I'm going to see what happens but I'm actually going to
[21:57] move the stop loss to the bottom of the range here at 176 so that we are at least in the money. Okay so now we got our toilet pocket and to be honest I was
[22:09] zoning out for a while the time is now 1 45 p.m. and made a great trade this trade admittedly is a little bit longer than usual normally you're in and out from the trade a lot faster. Okay guys that's going to conclude today's video I
[22:24] I hope you found value in this quick sweep scalper strategy and if you are interested I have another one candle sweep strategy that is very very effective but still super simple. If you are
[22:36] interested in that give the video a thumbs up, let me know in the comments and I can make a video for that one too. And I want to end with one reminder that is that historic results are no guarantee
[22:49] for future results. So even though this edge has been proven to be effective over many decades, it might stop working. And also, although very strong on most markets, this edge definitely
[23:03] works better with some markets and worse than others. So please evaluate the edge regularly, and as always, take care, trade well. Thank you guys for watching. I will talk to you again soon.
[23:17] Bye.