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Guide Scalping a bull flag

Hyunae

New member



Tools:
  • Chart of 5M market that is making new (intermittent) highs.
  • Best starting position is high-volume break through (short-term) resistance level.
Bull flag scalping set up:
  • Find a break through a resistance or a similar high-probability short term bullish point.
  • Work out the nearest resistance to the north. If this is an all-time high, use a fib extension.
  • Open a long. You may need to use an instant market order if the market is running away.
  • Set up your stop loss at the ratio of 1:1 or better compared to your expected resistance.
  • Move your stop loss up as the price moves up.
  • As the price approaches resistance, move your stop loss closer to the price: The middle of the previous candle. Keep moving the stop loss as new candles are generated.
  • Let your stop loss trigger.
  • Open a short.
  • Work out a support level for the retracement. Fibs are a good tool for that.
  • Set up your stop loss at the ratio of 1:1 or better.
  • Move your stop loss down as the price moves down.
  • As the price approaches support, move your stop loss closer to the price: The middle of the previous candle. Keep moving the stop loss as new candles are generated.
  • Let your stop loss trigger.
Typically, a bull flag will have two bottoms. You can trade the first bounce the same way.

Experiment with the stop-loss levels, on different markets different levels will be appropriate. It might seem like a way to minimise your risk by setting stop loss to the previous candle right from the start. The reason it’s kept loose like this is the notorious stop hunts on most crypto markets.
 
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