6/7/23, 12:10 AM SCALPING & PIVOT STRATEGY | The Prop Trader The Prop Trader < https://theproptrader.co/> ICT Concepts Oct 04 2021 < https://theproptrader.co/2021/10/04/pivot-scalpingstrategy/> Protected: SCALPING & PIVOT STRATEGY CHART SETUP The 2m/5m/10m scalping strategy signals a trade if price closes outside the Bollinger Bands on all 3 timeframes and fails to breakout (FBO). The FBO should preferable occur after a BB Squeeze. The following chart time-frames are required: fl fl 2-minute for execution (left) 5-minute for con uence (top-right) 10-minute for con uence (bottom right) https://theproptrader.co/2021/10/04/pivot-scalping-strategy/ 1/7 6/7/23, 12:10 AM SCALPING & PIVOT STRATEGY | The Prop Trader With the following Indicators: Bollinger Bands (2,20,close) EMA(8,close) EMA(21,close) A FBO would be indicated either by a hammer, shooting star or a pin bar with a long tail. The entry would be 1-tick above/below the FBO candle with a stop placed 1-tick above / below. TP can be taken at 2R or trailed. The 8 EMA and 21 EMA are used on all timeframes for trend analysis. Additional higher risk trades can be taken if the price closes outside the Bollinger Bands on the 2m or 5m and price is at the 8 EMA or 21 EMA support / resistance on the 10m. This is a short-term day-trading scalping strategy that has the following objectives: fi Pro table 4 out of 5 trading days per week Can be executed with relative ease >= 2.5 SQN100 score Traded on EURUSD FX Sport & ES CME Futures (not CFD) Can be executed any time during LD / NY Session crossover Ideally average >= 2R per day https://theproptrader.co/2021/10/04/pivot-scalping-strategy/ 2/7 6/7/23, 12:10 AM SCALPING & PIVOT STRATEGY | The Prop Trader There are several setups which are considered here. Most overlap in their rules: FVBO* FVBO + Troll Top FVBO + Troll Bottom FBOR** FBOR + Double Bottom FBOR + Double Top FBOR + Troll Bottom FBOR + Troll Top FVBO + FBOR * Failed Volatility Breakout, ** Failed Breakout Retest More information on the FVBO Strategy can be found here: https://theproptrader.co/2021/10/04/fvbo-strategy < https://theproptrader.co/2021/10/04/fvbo-strategy> ADDING PIVOTS FOR CONFLUENCE Add the Custom TradingView Multi-Pivot Zone Indicator to a 15 mins chart: Create a Custom Time Frame on TradingView (720 Minutes / 12 Hour) Go to Settings of Indicator Check / Tick “Show Half Lines” Select Time Frame and select 12 hours https://theproptrader.co/2021/10/04/pivot-scalping-strategy/ 3/7 6/7/23, 12:10 AM SCALPING & PIVOT STRATEGY | The Prop Trader If you have set-up the indicator as explained above using the 12 hour chart, it should look like the above. MR = Major Resistance MS = Major Support fl If price is between MS1 and MR1 it is considered to be a Neutral Mean Reversion Zone. This should re ect the Overnight High and Low when using 12 hour pivots. If MS1 or MR1 hold, there is a high probability the price will revert to the Pivot. We want to be able to establish if the market is in a Neutral state or some trending state. With this strategy, the market usually follows a step-by-step process: Bearish 1. Neutral 2. Bearish Breakout 3. Confirmed Bearish Breakout 4. Extended Bearish Breakout 5. New Neutral Bullish 1. Neutral 2. Bullish Breakout 3. Confirmed Bullish Breakout 4. Extended Bullish Breakout https://theproptrader.co/2021/10/04/pivot-scalping-strategy/ 4/7 6/7/23, 12:10 AM SCALPING & PIVOT STRATEGY | The Prop Trader 5. New Neutral Bearish Setup Once you break out of the Neutral Zone, you will want to get confirmation that a trend is in progress where multiple tests must pass. Each Test could be an area to add to your trade: Test 1: Close below MS1 – ½ signals a bearish breakout. Sell-Stop below Low until filled** Test 2: Hold time-filter below MS2 (T / 2) the bar. In the case of trading from a 15-minute chart, T = 15 minutes / 2 = 7.5 minutes. There may be a reason to use 1-minute charts when checking if time-filter holds. Sell-Stop below Low until filled. This confirms the bearish breakout. Test 3: Close below MS3 – ½ extends the bearish trend. Sell-Stop below Low until filled. Test 4: Hold time-filter below MS4 (T / 2) the bar.Confirms trend extension. Sell-Stop below low until filled. **If price hits the pivot, then the trade-setup resets. Bullish Setup Same but in reverse: Test 1: Close above MR1 + ½ signals a bullish breakout. Buy-Stop above High until filled* Test 2: Hold time-filter above MR2 (T / 2) the bar. In the case of trading from a 15-minute chart, T = 15 minutes / 2 = 7.5 minutes. There may be a reason to use 1-minute charts when checking if time-filter holds. confirms the bullish breakout. Buy-Stop above High until filled. Test 3: Close below MR3 – ½ Signals Bullish Trend Extension. Buy-Stop above High until filled. Test 4: Hold time-filter above MR4 (T / 2) the bar. Confirms Bullish trend extension. Buy-Stop above High until filled. **If price reverts to the Pivot, then the setup is reset. If a Test fails then you may take the trade back to the Pivot as before. https://theproptrader.co/2021/10/04/pivot-scalping-strategy/ 5/7 6/7/23, 12:10 AM SCALPING & PIVOT STRATEGY | The Prop Trader Watch for confluence of the Pivot Levels with the Scalping Strategy rules. At given pivot levels wait for FBOR / FVBO setups. ADDING TRADING SESSIONS Add the custom TradingView Sessions Boxes for TY, LD and NY Opening Ranges for confluence with Pivots: Indicators required: Bollinger Bands (20,2), 8 EMA, 21 EMA, Multi-Pivot Zones (custom) APPENDIX https://drive.google.com/drive/folders/1J5QkeO0M0RvCUa3bMnfcX9 xmhRgny7PP?usp=sharing < https://drive.google.com/drive/folders/1J5QkeO0M0RvCUa3bMnfcX9 xmhRgny7PP?usp=sharing> Leave a Comment Your email address will not be published. Required fields are marked * Comment * https://theproptrader.co/2021/10/04/pivot-scalping-strategy/ 6/7 6/7/23, 12:10 AM SCALPING & PIVOT STRATEGY | The Prop Trader Name Email Website Save my name, email, and website in this browser for the next time I comment. Notify me of new posts by email. Post Comment The Prop Trader < https://theproptrader.co/> https://theproptrader.co/2021/10/04/pivot-scalping-strategy/ 7/7
