Best Scalping Trading Strategy for Beginners (Forex, Stocks, Crypto)

[00:01] going to give you a combination of indicators a list of rules to follow and show you a scalping strategy that has been back tested and proven to work it works with almost all markets all time frames and most importantly it works

[00:16] trying to buy the absolute low on a downtrend and trying to hit that exact would be nice to hit that exact point of a downwards reversal and make a ton of money when it reverses it's extremely unlikely you'll find that exact point

[00:32] the majority of the time if you've watched my videos before I'm all about probability and success rate I'm a huge fan of trading with the chart not against it what I mean by that is that I will only enter trades if the chart is

[00:44] in an uptrend with all that said let's get started with the strategy rule important rule is that we will only be trading with the trend at least with this strategy you may be asking yourself how do I know if a chart is in an

[00:58] uptrend or a downtrend well it's pretty simple just go to trading view click the indicators Tab and type in EMA for exponential moving average then go to the settings of the indicator and change the length to 200 this will give us a

[01:13] 200 day moving average I'm also going to change my line to Red just so you can see it better but this is optional so with this strategy we will only enter a trade if the chart is in an uptrend which means we will only enter a trade

[01:26] if the price is above the 200 day line if the price is below the 200 day line we will not enter the trade so this is the first rule of the strategy you must be trading with the trend meaning we will only enter a trade if the price is

[01:39] above the 200 day line now that we know rule number one let's move on to the rest of the rules that must be met in order for you to enter the trade rule number two involves using the RSI indicator but with a Twist go to the

[01:53] indicators Tab and type in RSI Divergence make sure to pick this one right here next we're going to change the settings a bit go to the settings then uncheck these bottom three check boxes so this will clean our chart up a

[02:05] bit then go to the middle line tab and change the color to white and make it a solid line this is just so it's easier to see now usually the RSI indicator is used for seeing if the market is overbought or oversold but in this

[02:20] find momentum in the market so rule number two is that we will only enter a trade if the RSI line is above the middle white line if all the other rules middle white line if all the other rules are met and the RSI is below the line we

[02:34] will not enter the trade the cool thing about this customized RSI indicator is that it also shows Divergence if you don't know what Divergence is to put it basically when the price is moving in the opposite direction as the indicator

[02:49] so if you're seeing higher highs on the chart and lower highs on the RSI that's Divergence the cool thing about this RSI indicator is it will automatically show us if bullish Divergence is occurring as a quick disclaimer though I've seen this

[03:02] indicator messed up and not show Divergence sometimes so you may have to that in the back of your head but nonetheless this is a great indicator so this bullish Divergence is not exactly a rule that we have to follow but it's a

[03:16] great sign if you see it when all the other rules are aligned let's move to rule number three if you've watched my other videos before you probably know I love momentum candles this can be a great way to find the start of a trend

[03:29] we're going to be looking for is what is called an engulfing candle to put it simply an engulfing candle is a candle where engulfs the previous candle a bullish engulfing candle opens at or lower than the previous candle's close

[03:44] the length of the bullish candle body engulfs the previous red candle then the bullish candle closes above the previous candle's open this is an engulfing candle and it's a great way to find the start of a trend instead of looking for

[03:58] this candle our eles and just looking at the chart all day we're going to let an indicator do the work for us go to the indicators Tab and type in engulfing right here when you add it you're going to be seeing a bunch of red and green

[04:12] arrows since we're going to be doing long trades in this example you can just disregard the Red Arrows so all of these green arrows are bullish engulfing candles rule number three is we will only enter a trade if we see a green

[04:25] arrow so let's go over what a successful trade would look like one we see the price is over the 200 day line which implies the chart is in an uptrend so so far so good we then make sure the RSI line is above the 50 Mark which it is so

[04:41] we're all good there we do not need to see a bullish Divergence but if we do see one it's a plus one and makes this trade even more bullish next we look for a green arrow which I should also mention right now we will only enter the

[04:55] trade after the Green Arrow candle closes I repeat only enter after the Green Arrow candle closes this candle could show a green arrow but then change while the candle is still forming and not end up being an engulfing candle

[05:10] when it closes so once the candle closes and there's a green arrow we will enter the trade then for this specific strategy we will set our stop loss two times the length of the entry candle we then set our takeprofit to a 2:1 ratio

[05:24] it's that simple and boom as you can see the price hits our Mark now if you're one of those people who gets panicked easily or gets out of Trades too early or late literally just set your takeprofit set your stop loss and just

[05:37] close your computer and let the strategy do its work this will help you stop trading emotionally and selling too early or even worse getting greedy and moving your takeprofit it is also important to note you probably won't be

[05:50] trading every day with this strategy since we're only trading with the trend the chart isn't going to be in a trend 100% of the time so there will be days where you simp simply won't be able to trade this is okay you just need to

[06:03] will only trade when the market is working for you not against you let's do one more example first we make sure our price is above the 200 day line we then make sure the RSI is above the 50 line we also see that the RSI has a bullish

[06:18] Divergence which is not needed but it increases the chance that this will be a winning trade so that's good then we see a candle with a green arrow under it indicating it's a bullish engulfing candle we then wait for that specific

[06:33] candle to close once it does we enter the trade we set our stop-loss two times the length of the engulfing candle then put our take profit Mark to a two profit ratio then wait we see the price move up hater take profit Mark and we exit the

[06:47] trade I just showed you a successful trading strategy that works great because you trade with the trend all I ask in return is if you take 2 seconds seriously means the world to me and helps me out so much if you want to see

[07:01] my secret strategy to avoid false breakouts watch this video because there are some pretty insane hidden gems in there that'll improve your trading so much thanks for watching and I'll see you guys next time