Simple Scalping Strategy That Makes Me $100k/mo (How To Guide)

Summary

In this insightful guide, Waqar Asim shares his journey of mastering scalp trading after a decade of trial and error with various trading strategies. He highlights the simplicity and efficiency of scalp trading, focusing on high probability setups. Waqar elaborates on the importance of having a built-in edge similar to a casino's strategy, using a methodical approach with lower time frame confirmations and time-based inducements. Emphasizing precision in entry, he illustrates how reacting to market trends like a casino, by leveraging the minor edges, ensures profitability. Through comprehensive setup criteria, Waqar sets a solid foundation for traders aiming to achieve consistency with this less time-consuming yet highly profitable trading approach.

Highlights

• Trade like a casino – aim for a small, consistent winning edge! 🎲
• Precision in entry can outweigh master trading skills. 🎯
• Focus on high-probability setups rather than distracting market noise. 📊

Key Takeaways

• Scalp trading isn't gambling; it's about having a built-in edge like a casino! 🎰
• Stick to 2-4 high probability trades per week for consistent profits. 📈
• Embrace a simplified strategy - no crazy indicators needed! 🚫📉

Overview

After nearly a decade in trading filled with failures and blown accounts, Waqar Asim found success in scalping by adopting a casino-like mindset. Instead of overthinking, he now focuses on small, routine trades with built-in advantages to ensure consistent profits.

Waqar emphasizes the importance of understanding trends and precise entry points in scalping. By aligning trades with market structure and trends, traders can secure a sharper edge, reducing risk and enhancing profitability.

Through a blend of analysis and real-time examples, Waqar provides a roadmap to successful scalp trading. His strategy revolves around building in an advantage akin to the house in gambling, where even a small edge piled over numerous trades can lead to substantial gains.

Chapters

• 00:00 - 01:30: Introduction and Personal Trading Journey The chapter introduces the author's extensive personal trading journey over nearly a decade. The author experimented with a variety of trading strategies, including swing trading and scalping. Despite exploring smart money concepts, market structure trading, and supply and demand strategies, the author faced numerous challenges, including frequent losses, blown accounts, and emotional spirals leading to multiple losses in a single day. These experiences highlight the difficulties in achieving profitability in trading, despite extensive trial and error.
• 01:30 - 03:00: Simplified Scalping Strategy The chapter "Simplified Scalping Strategy" narrates the author's 10-year journey in trading, highlighting the transition from frequent trading leading to potential losses, to adopting a more measured approach by selecting only 2-4 high probability setups weekly. This change has not only liberated time, reducing screen hours from 5-10 daily to just 2, but also unlocked financial freedom, facilitating consistent trading profits up to $100,000 monthly. The author's new strategies are shared as a testament to achieving substantial financial success in one's 20s through disciplined trading.
• 03:00 - 04:30: The Role of Probability in Scalping In this chapter, the focus is on simplifying the scalping trading strategy by leveraging 10 years of trading experience. The author emphasizes the elimination of complex indicators, guesswork, and complicated strategies in favor of a simple and repeatable system. The chapter includes a detailed, step-by-step checklist that the author uses before entering the market. Additionally, diagram examples and live case studies of real-time price action are provided. This chapter is particularly aimed at traders who struggle with profitability in scalping, aiming to enhance their understanding and success by utilizing a strategic and straightforward approach.
• 04:30 - 06:00: The Edge of a Built-in System The chapter discusses the concept of scalping in trading, exploring the reasons for considering it as a trading strategy. It addresses common misconceptions about scalping, such as the belief that it is akin to gambling and is considered 'noise,' especially on lower time frames. The chapter emphasizes the importance of understanding probability in scalp trading.
• 06:00 - 09:00: Importance of Trend and Market Structure This chapter discusses the significance of understanding market trends and structures, emphasizing that many successful traders are scalp traders. The Medallion Fund, founded by Jim Simons, is highlighted as a prime example of a successful trading entity that focuses on lower time frame day trading. The chapter underscores the profitability of adopting a trading strategy similar to a casino's approach, where the odds are structured in a way that the 'house always wins.'
• 09:00 - 12:00: Precision in Entry for Scalping The chapter 'Precision in Entry for Scalping' discusses the concept of edge in trading, comparing it to a casino's built-in positive expectancy. It explains how casinos, like with the roulette wheel, create an edge with the inclusion of green areas (zero and double zero), giving them an advantage over gamblers. This analogy is used to illustrate the importance of having a clear, built-in advantage or strategy when engaging in scalping or trading, ensuring a positive expectancy and a good sharp ratio.
• 12:00 - 15:00: Three Key Elements for Scalping: Time, Inducement, and Confirmation This chapter discusses the three key elements essential for scalping: time, inducement, and confirmation. Scalping is compared to a casino's business model, emphasizing the importance of having a built-in edge, as even a slight advantage (like a 52% win rate compared to the typical 50/50 odds) can lead to profitability if applied consistently over a large volume of trades. Just as casinos rely on a high volume of bets to ensure profitability, traders should focus on increasing their trade volume to let the data play out over thousands of transactions.
• 15:00 - 23:00: Practical Guide and Examples in Live Trades The chapter discusses trading strategies, emphasizing the importance of having a statistical edge, such as a 52% win rate, in ensuring profitability over thousands of trades.
• 23:00 - 26:00: Advanced Strategies and Theory Recap The chapter explores the concept of price predictions in the financial markets, emphasizing the varying levels of accuracy based on the time frame. It discusses the ability to predict price movements with high certainty over short periods, such as 5 to 10 pips within 5 minutes. However, it highlights the decreasing accuracy over longer periods, illustrating the challenges in predicting price movements over 2-3 hours and emphasizing the near impossibility of predicting exact prices in the distant future, such as 3 years. The chapter underscores the increased uncertainty and the need to adjust the prediction range as the scope of time widens.
• 26:00 - 28:00: Conclusion and Additional Resources In this chapter titled 'Conclusion and Additional Resources,' the focus is on the premise behind scalp trading. The chapter emphasizes that due to the significant variance and unpredictable factors affecting prices over three years, scalp trading offers increased probability with shorter time horizons. This is because there are fewer deviations that prices can take within a shorter period, allowing probability to work in your favor. The chapter advises not to aim for catching the entire move from bottom to top, a common aspiration among traders. Instead, it underscores that profitable scalp traders should be content with securing profits without aiming for the entire spectrum of a price movement. This realistic approach helps maintain profitability in scalp trading.

Simple Scalping Strategy That Makes Me $100k/mo (How To Guide) Transcription

• 00:00 - 00:30 I've been trading for almost a decade now. And I've tried every single strategy from swing trading strategies all the way down to scalping strategies. And it took me years and years to go through all the strategies I could find to actually find profitability within my scalping. I tried the smart money concepts trading. I tried market structure trading. I tried supply and demand. And what I realized is all of these led to more losses, more blown accounts, and more frustration. I could very easily emotionally spiral and end up taking four or five losses in a single day. And what did that mean? I ended up blowing an account in the space
• 00:30 - 01:00 of a week and at times even blowing accounts in a single day. And now fast forwarding my journey to the present day almost 10 years later. I'm taking just two to four high probability setups per week. And with these new systems and strategies, not only have I unlocked time freedom, but I'm not glued to the screen 5 to 10 hours per day, just 2 hours per day. I'm also unlocking financial freedom because this helped me unlock millions of dollars in my 20s and ranging from $50 to $100,000 per month consistently for many years in trading profits. And in this video, I'm going to show you that you don't need a
• 01:00 - 01:30 complicated strategy. I'm going to refine my 10 years of trading knowledge to a simplified approach. And no, this doesn't involve any crazy indicators. This doesn't involve any guesswork. This doesn't involve any crazy complicated strategies. Just a simple, repeatable system that leads to consistent results. And today, I'm going to reveal to you the exact step-by-step checklist that I look for before I enter the markets, plus some diagram examples, and then over to the markets to show you some live case studies of real-time price action. So, if you are a struggling trader and you've always wondered how to be profitable with scalping and why
• 01:30 - 02:00 scalping is even the best way to be trading, stick around for the rest of this video if you want to become a full-time profitable scalp trader. So, welcome to this breakdown on how to become a profitable scalp trader. And the first thing to establish is why should you even be a scalping trader? What is there to consider? The first thing here is when we come to our objectives of why you should even be considering scalp trading, the first few things you need to realize is the probability. And probability is going to be a key word. Now, the misconception online is that scalping is like gambling. And scalping is noise, especially when you're on the lower time frame. And the real hedge funds and the real traders, they don't scalp. Now,
• 02:00 - 02:30 first of all, that's a huge mistake. Some of the best traders in the world are scalp traders. And when you look at the most successful hedge fund on earth, that is the Medallion Fund that was founded by Jim Simons, known as one of the best traders on earth. And the Medallion Fund consistently for multiple decades beats the market and beats every other hedge fund on earth to give the phenomenal returns that they did. And they were known for being lower time frame day traders, not swing traders or fundamentals traders. And the reason for this is that profitable traders, they view their trading like the casino. As the famous saying goes, the house always wins. You just need to have a built-in
• 02:30 - 03:00 edge, a built-in positive expectancy, and a good sharp ratio, just like a casino does, as opposed to a gambler. Now, when you look at the casino, when it comes to something like the roulette wheel on face value, it's a 50/50, red or black. And therefore, your odds as a gambler is simply 50/50. However, you can easily overlook the fact that there is two green areas, zero and 0. And therefore, these two pieces that are for the casino, they add on 1% and this adds on 1%. So the house or the casino has a bakedin profitable edge of plus one plus
• 03:00 - 03:30 one. Even though it is 50/50, it actually gets skewed towards the casino because they have a guaranteed win if it lands on these two. And therefore, the mindset of a casino and a profitable trader is you have to think of a built-in edge. Hypothetically speaking, if you were a trader that had a guaranteed 52% win rate, so you were slightly positive and a 1:1 riskreward. Therefore, your only edge is at 2.5% above the 50/50. Just like the casino, the best way for you to make money would be to increase your trade volume. Allow the data to play out over thousands and
• 03:30 - 04:00 thousands of trades because you know you have a 100% guaranteed that you have a 52% win rate. So that 2.5% edge is guaranteed in there. Now, if you want to think how can I have more probability in my win rate or how can I have more probability in my data, this is where scalping comes in because when you look at the word probability, probability is highly linked to standard deviations. Now what I mean by that is let's say on GBPUSD price opened here today at the price level 1.200. Okay. Where do you think price will be in the next 5 minutes? Well, more than likely it's going to be somewhere within this region plus or
• 04:00 - 04:30 minus 5 to 10 pips. We can say that with 90% certainty that we're going to be somewhere within this area within the next 5 minutes. But if I'm to ask you where is price going to be within the next 2 hours, within the next 3 hours, then we can say it's going to be roughly in this area. But it can also be up here. It can also be down here. So then we have less accuracy because we have to widen the scope of where price could be. We have to add more deviations to the opening point. But now if I'm to ask you where is price going to be in 3 years time, it would be pretty much impossible to know where price is going to be based
• 04:30 - 05:00 on this open price because there is so much variance. There are so many things that could happen in those three years that could take price really really bullish or really really bearish. And that's the premise behind scalp trading that the shorter the time horizon, the increased probability you have because there's less deviations that price can go towards with probability on your side. Another important factor here as your objectives as a scalp trader is don't try and catch the whole move. It's very normal for traders that they see a move like this and they want to get in right at the bottom and they want to get out right at the top. But a profitable scalp trader, they'll be happy with just
• 05:00 - 05:30 this small portion right here. As long as it's high probability, they can appropriately risk. They can get a good risk-to-reward out of it. You might get a higher ROI, return on investment based on trading this smaller portion in price as long as you're able to risk appropriately and you have a higher riskreward than somebody that caught the whole move. And that brings me to the point that you don't need to catch the whole move. That simply is vanity. That just looks good on Instagram. That looks good when you share it to your friends. But a profitable trader is not concerned about catching the whole move. We are concerned about catching the most probable part of the move, not the whole
• 05:30 - 06:00 move itself. And because we are scalp trading and we are going to be focused on the lower time frames, we are looking for the high probability reactions. And therefore, it doesn't matter too much what the whole move of the market will be. It doesn't matter what the 4hour time frame, the daily time frame. It doesn't matter what the next 6 months price action is. It doesn't matter what the Federal Reserve is doing. It doesn't matter about interest rates because that's not going to have an impact over the next 30 minutes, over the next 1 hour, over the next London session. So therefore, as a scalp trader, you don't need to give too much focus to the higher time frames. Although that sounds like a sin in trading because everybody says focus on the higher time frames, do
• 06:00 - 06:30 a top- down analysis, higher time frames are more safe. It is true to an extent, but they don't hold more weight for a scalp trader because we are focused on reactions and higher time frame zones don't always mean more probable reaction zones. So therefore, long-term bias fundamentals and higher time frame, they don't mean too much to us because we are looking for high probability reaction points. And that's what we need to understand what means high probability reaction points. The next building block is to understand trend. Market structure and trend is always going to be your friend. And the reason for that is trend gives you more certainty on direction
• 06:30 - 07:00 and strength of reaction. If you are with the trend and you find the right reaction point, you will always have a better reaction than you are trading the retracement or counter trend. Simply put, when the market has a bullish expansion and then has a retracement, the retracement is always going to be longer. It's going to be more consolidative. It's going to be more exhaustive, choppy price action. And then the next impulse will always be faster with momentum, with direction and with the trend. So therefore, if you can find a good reaction point within here and you are with the trend because you know you made a higher low to higher high, you can trade the next higher high
• 07:00 - 07:30 portion. And because it is with the trend, you'll always have more momentum on your side. You'll have more volatility on your side and overall leads to a better win rate than trading this choppy retracement price action. Now the complexity becomes is what time frame of trend do you pick? Because you can have a daily trend, you can have a 4-hour trend, you can have a 5m minute trend, a one minute trend. What does trend mean? That's where we have to do a multi-time frame read and understand what is relevant and what makes a relevant trend for a intra session or day trader or scalp trader. It's not going to be the daily trend necessarily. And then the last portion to consider is your entry. Now the entry is the most
• 07:30 - 08:00 important thing in my opinion. If you can master the entry, you can be an average trader, but if you have phenomenal entries, you will make way more money, have way more peace than a master trader. And the reason for that is entries can give you a superpower that is precision. Now let's put this into some perspective. If you are a trader and you found a zone over here that you should be trading in and you just put a limit on the zone. This is your limit and this is your stop loss. You are someone that's waiting for price to come in. You don't care where it's going to reverse from and then you go into profit. Now if you are that trader
• 08:00 - 08:30 that has entered in the trade, you are in profit. You got a good entry but it becomes certainly harder to break even because price could come back to this level over here. Price could come back to this level over here and therefore you might have to delay your break even or miss the trade. If price came back to give a reaction on this zone, you already crossed your entry point. So either you miss the trade for break even or you have to leave exposure on the market and therefore you can be a victim to stop loss later on after the reaction and remember a scalp trader is finding high probability reactions and this portion over here could be the reaction and then price could go on to fail. So you need to be sharp with timing and
• 08:30 - 09:00 finding the reaction and then protecting yourself correctly with break even. And if you have a good entry you can protect yourself in the most appropriate way. And what I mean by that is if you have the same zone criteria and then you wait for price to arrive in the zone and then you wait for price to give a shift. For example, we have a breaker structure over here and then you wait for an entry in this zone. By the time price has come to that same area and made the higher high on M5, let's say you can actually now trade completely differently cuz your entry and stop loss is not there anymore because your entry is over here and your stop loss is down here. So if
• 09:00 - 09:30 price does want to come back to any of these areas, this is okay for you because you've moved your stop loss to break even over here. So price can come back, give a reaction on these zones and your entry is safe. And if the market does reverse on you, you are also protected because you moved your stop loss to break even. So the better your entry, the better your protection is because you can break even in a faster way. You don't have to wait to break even and you can appropriately protect yourself from postreaction stop- losses. And that is the overall benefits of a sharp entry which I'm going to be showing you. You have a better break even protocol. You have an additional
• 09:30 - 10:00 confirmation because you had the market structure shift. So you're not just waiting on the zone. is zone plus confirm reaction. So you have more confirmation and you have a smaller stop loss instead of a stop loss of the whole zone as before. Your stop loss is simply this smaller area and smaller stop-loss with confirmation equals better risk-to-reward and better win rate. So this is going to improve your risk-reward and improve your win rate and give you a better break even protocol. That's why I call it a superpower and that's something I'm going to be exploring as well. Okay, so now that we've understood the building blocks of what a scalp trader should be optimizing for, let's get into some
• 10:00 - 10:30 setup criterias. And that brings me to my famous trinity that is time inducement and lower time frame confirmations. So the lower time frame confirmation block is going to be similar to the entry we spoke about. And then inducements help us identify trends and help us confirm zones. So that's going to be quite linked. And then time is going to help us achieve these objectives of higher probability reactions. These areas are going to be linked to time volatility. High probability reactions are all linked to time. Inducements are going to be high probability reactions and help us
• 10:30 - 11:00 understand trend. And the lower time frame confirmations help our entry and being better win rates, better risk to reward. So we can see how all these things are quite interconnected. So as you can see, there's quite a lot of things to cover and I won't be able to get through it all in one video. So I will be doing this as a multi-part series. If you are interested in me covering the rest of this mind map, just let me know in the comments and maybe I can even give this away as a downloadable resource if you do let me know in the comments. The key things I want you to notice from the time inducement and lower time frame trinity, the most important building blocks for profitable scalp trading is your time windows need to be London and New York.
• 11:00 - 11:30 The reason I'm only trading 2 hours a day is because I have my refined key windows. I take two to four trades per week and I have 2 hours of opportunity per day. So you can actually imagine if you do the math, if I take four trades on a good week, but from Monday to Friday I have 10 opportunities. Most of my sessions I'm not taking a trade. So a scalper doesn't mean taking lots of entries, reading M1 and finding every opportunity. you still wait for high quality reactions and that's going to be determined by your inducement and your lower time frame confirmations built around your trend analysis. So in fact let's not stay on theory too much. Let's
• 11:30 - 12:00 jump into price action so I can show you some examples. So the first thing to understand from this market is that we are bullish. We can clearly see we are forming higher highs and higher lows. We're coming from these low areas down here and we are having bullish pushes. So when we understand it's a bullish market then we have to find our most recent bullish impulse. I like to do this on M15. My usual time frame for analysis of POIs in trend. I actually like to do an M15 or 1 hour and I usually look at both and then prefer the M15 because it's more refined points of interest. And what we do is first find a bullish impulse in line with that trend.
• 12:00 - 12:30 So we just look at the last ceiling in price. We can see price was capped over here. Previously price was stalling one touch, two touch, three touch, four touch and this area fails to introduce a bearish market. Although we do have this level of support or this level of structure taken out to maybe start a bearish market. It fails to make lower lows and in fact goes on to make higher highs. So we can see that we grabbed the liquidity from these lows and this led us to taking out the previous ceiling in price. Therefore we have found a very nice market cycle where we have found consolidation inducement manipulation
• 12:30 - 13:00 and then trend related expansion and this for me confirms a very nice POI and therefore this for me confirms very nice market structure, very nice trend and then it gives me zones I can be considering. Number one is going to be the inducement extreme the genesis portion of this impulse. What was the low that led to the high? It's all the way down here. And it was also inducement related because we took all of this liquidity on the left including this low, including this low. So, we've confirmed that area. And then this area over here, the reason I'm interested in this area because that previous ceiling in price, these were the buyers that
• 13:00 - 13:30 actually attacked that area. So, this is the decisional portion. If I do analyze that portion a little bit closer, we can see that that portion has some more information. Is because it did have a trend line forming one touch, two touch, inviting in early sellers. And when you look left and you say this is the previous double top, triple top supply zone that sellers were interested in previously. Price is coming into that zone giving that bearish reaction giving that bearish breaks of structure. And what we see is that we had this zone induced minor inducement push out and then we have a mitigation with another
• 13:30 - 14:00 inducement. We have a liquidity cycle which is part of this zone here. So there's a lot of things that we can learn about and in previous videos I've actually broken this down. So make sure you check it out. But parts of the things I'm looking at is when I'm looking for a point of interest, I validate it with runs of liquidity. And I look at my structure cycle. Did I have a buildup, induce, or mitigation? And when I come back to this, I see a full structure cycle where I have a buildup, inducement, mitigation with an inducement inside of it that led to a bullish market impulse. And therefore, we have quite confidently confirmed we have found a higher low to higher high
• 14:00 - 14:30 market impulse. And therefore, after this high is found and we've refined our points of interest, we have found a decisional area that we've refined and we found an extreme area. Both areas are valid to trade. Now this is where things get interesting. Now I can turn on my custom tool that gives me the daily cycle markers is going to be my Asia range, my London and New York window and some key elements like previous day low, previous week low, etc. And this is going to be as a scalp trade or an intession trader my preession analysis and that's going to be where are my liquidity pools? It's going to be Asia low, Asia high, first liquidity pool. Then we have recent structure. So we
• 14:30 - 15:00 have this area over here and this area over here. We can see that they are quite close by. So we can pull it into one area. Then we have to look left and say apart from previous days low which is a liquidity pool aligned with Asia low where is my point of interest? My relevant point of interest that we just confirmed is this decisional that led to a market structure push and I've refined it down to include both inducements. So when we have found a relevant zone and we have the liquidity pool of Asia low and we have the liquidity pool of previous day low then I just have to wait for my timing. So what do I do? I wait for my gray box which is in my tool
• 15:00 - 15:30 for my London open and therefore we'd look over here. We look at a POI based in London session and we use a lower time frame model that has a buildup inducment mitigation would be preferred. We have confirmed the point of interest because it did have a previous run of liquidity and we are going to be looking for a reversal model in our points of interest because we are looking for area to come into this zone and then reverse and that's essentially what we're hoping for. So to just speed through it, this is the framework. We now wait for price to induce Asia low, induce previous day low, come into our refined area that is aligned with the trend and in our London
• 15:30 - 16:00 window. Now just looking at simple market structure we could say price could go and make a new higher high from here. We have all of this bearish trend line liquidity. We can see that price is exhausting. It's very choppy. We can see that internal price action and we can have a fast impulse. That's one option. Another option could be however is that price comes and grabs some of this liquidity gives the reaction grabs liquidity and then comes lower into the extreme the other portion of our POI and then that's where we have the real move. That's where we can have the real higher high from. So both of these are valid options. This is why we don't trade the whole move. We just trade probable
• 16:00 - 16:30 reactions where we have confirmed POI with a trend and we have time based inducements with lower time frame and we don't care if price is going to come from here to here here to here or just Asia high just that previous structure just that previous high high we don't care where it goes because our philosophy is very simple we find high probability highly qualified reaction zones this area we align it with time to give us more confirmation and then we use lower time frame confirmation to break even as fast as we can and then we take a partial at 1 to three and therefore If our stop loss is 3, four or
• 16:30 - 17:00 five pips, our take-profit one at the 1 to3 riskreward is going to be between 9 and 15 pips. That is a very high probability to get that reaction because of the deviations we spoke about. If you remember, the whole point of scalping is to find high probability reactions that are within standard deviations that are sensible. And therefore, on average, a London session in a GBPUSD, it's on average 20 pips. And therefore, if our take-profit one is between 9 and 15 pips, we have high probability to hit our take-profit one if we have the reaction in our direction. So, it's just reaction to result and it doesn't take
• 17:00 - 17:30 too much time of your day. It's just 2 hours a day and you don't need to be in the trade for hours. You just get the reaction and you take something out of it and you protect yourself as fast as you can. That's how you profitably scalp trade. So, when we play a few of those candles in London session, we can see it's giving that reaction right away in the key window. And after that reaction, you can get that 1 to three within 15 pips. And if we measure already from the low of the move to the high of the move already is 23 pips. And obviously we're not going to get a sniper entry, but a confirmed entry to a 1:3 is 9 pips, 10 pips, 12 pips. So we're well within the healthy regions. We've already got our 1
• 17:30 - 18:00 to3. And then if it hits break even, we don't care. We already got our reaction. And in this case, we see it went further and maybe even starting to attack our take-profit level too. But the premise here was very simple. We had zones of liquidity. We had the inducement in a POI with the trend. And then we traded with that volatility in the right moment with the right confirmation. Beautiful stuff. Now let's fast forward price to the next area, the next point of interest. So now when we look at what happened, we had the reaction from our decisional zone. That area led to make a new higher high. So now it's already completed the potential objective. And more importantly, we've taken all of this liquidity of this zone, previous
• 18:00 - 18:30 week high, and this zone over here. We've had a big liquidation event. This could be a major inducement. And then we see price continuing to go bearish. Hence why we take out all of this structure fueled by these inducements. Now we have price locked. And this is usually what happens where we have inducement and bearish reaction and inducement and bullish reaction. So what do we pick? We pick the trend which we established right at the beginning that the trend is bullish. So we've arrived to our key zone down here and we do the same thing again. If you are someone that has watched one of my previous videos about the break test model, this
• 18:30 - 19:00 is an example of it right here where we have this area of support right here and the area of support turns into an area of resistance right here. Support turn to resistance and then you find an inducement in the time window. And that's exactly that model. Support to resistance inducement confirmation to trade that portion over here. not the purpose of this video, but do go check out the other video which is another trade model aside from this one that I'm teaching today following very similar steps that I've explained today. Okay, let's turn on our custom tool once again and we can see the session timings and we see over here that we've had certain
• 19:00 - 19:30 things happening price doing an inducement in the time window giving the reaction and then this inducement of the other trade model which is another opportunity for us to sell. This has now given the volatility to now come all the way to the extreme of the zone. So we are now inducing this previous zone which became a smart money trap teaching point for another day. And now we could potentially induce the whole zone. So when we see price is now inducing the whole zone. We've taken out the whole demand area. This comes into the inducement of the POI category. And this one is going to be based on a major inducement. A major inducement of a POI.
• 19:30 - 20:00 And once again we just need to get a lower time frame model to confirm it. But it's a major inducement of a POI. Come back into it. So we just jump upper time frame just to get through it quicker. But we see major inducement. That is the cause. And it's like an elastic band. The bigger the cause, the bigger the stretch on the elastic band, the better the reaction you will have. And that's the same thing over here. If you get a major inducement of a POI, not only is it London session low and Asia low, you're getting a whole market structure zone. And therefore, you've taken a lot of liquidity out of this area and you still have the trend on your side. From now, from here, you can actually get a whole move. And again, a scalp trader is not interested in this
• 20:00 - 20:30 whole move. We are interested in high probability reactions. For example, a major inducement with lower time frame confirmation than time. That is a high probability reaction point. And we can see from that cause and effect, we get a nice strong reaction. Look at that go like a rocket. And then we attack all the previous areas. So that's just another example of that same principle. Now, same thing once again. We are just trading away from that last inducement. The next day we fast forward and we reanalyze and we say, okay, we have done the same thing again. We have
• 20:30 - 21:00 certain ceilings in price, the previous high. We have now this inducement over here potentially leading the show and then we have a higher high being formed. So we have a bullish impulse taking out the previous ceiling led by an inducement and then within that area what do we find? We find the extreme over here the extreme POI and then we find a decisional this area that led to the last push out the last bullish impulse. So both of those areas are valid. What do we do? Waits for our key time window. We trade just 2 hours a day. We wait for an inducement. So we need to look for a manipulation. That's where we have it. You look for lower
• 21:00 - 21:30 time frame confirmation. And there we have a full manipulation over here with maybe a lower time frame confirmation to then trade that reaction. And that becomes the same thing again. This is almost a daily occurrence in terms of principle. But that doesn't mean you can enter every day. I'm not showing you every day as an entry. These are just showing you that inducement plus POI plus trend equals to higher probability reactions. And then it's our job to trade them sensibly. And that's going to be your entry protocol. And to be honest, to break it down to you, there are many entry types. In fact, just lately in our VIP community, we shared a 65page document going through outlining
• 21:30 - 22:00 with multiple examples, diagrams, case studies, all of the entry types. So, as you can imagine, I can't cover it all today, but what I can tell you is out of that 65page document, my favorite one is going to be an M1 BOS after an inducement. So, something like this price action model where we have price doing a buildup, price doing an inducement, and then giving a breaker structure on M1 and leaving a zone to trade. That is going to be my favorite entry type, an M1 breaker structure. Now, I could go on, but I think you get the idea. This happens almost every single day. And as long as you are trading with this trend, with this inducement, with this tie, you're always
• 22:00 - 22:30 going to be finding high probability zones. And trading as a scalper becomes a lot more easier. And the key to all of this, as you always know, a restricted trader is a profitable trader.