Scalping intraday using only 2 timeframes with the TradersHelpDesk indicators is really simple for those that are confused with a multiple timeframe approach. In this video, I show you just how easy it is to take 20, 30 or 40 ticks out of the market by focusing on the 180 and 45 minute combination (although it would work on any 2 timeframes that I use).
Scalping Intraday Using Only 2 Timeframes
To scalp any market using only 2 timeframes with the TradersHelpDesk indicators is fairly simple. The rules are:
- Higher timeframe is at an ATR
- Lower timeframe has the potential to make a magenta peak
- Volume divergence (potential appears on both higher and lower timeframe)
For a stop, simply offset the high on the lower timeframe (or low as the case may be) by a few ticks. It really is that simple. Additionally, you can go down one extra timeframe to pull your stop down to ensure that you lock in profits. Some trades may get choked but your aim is to make quick profits so pulling it down quickly is essential. Most of you have seen me do this in the trading room. What we are trading are bars that move very quickly in your favor — it’s that simple.
Why does it work so well? Because actually if you think about it — both timeframes are in harmony. The higher timeframe is indicating a downward move and so is the lower timeframe. The extra confirmation with the volume divergence on the highs is icing on the cake. Because we are entering very quickly, the risk is low.
Of course you do have to apply money management and risk parameters. For example, if you find you are risking 50 to make 10, bad choice. It should be the opposite — risking 10 to make 20, 30 or 40 ticks. The advantage is that because I am using two higher timeframes, profits usually are going to outweigh the risks but I’m sure there will be cases where you have an inverse risk to reward ratio.
The indicators needed for this trading technique are included in the TradersHelpDesk Special Packages.