Forex Scalping Masterclass ( Scalping Strategy ) | Daksh Murkute | Skillshare

Forex Scalping Masterclass ( Scalping Strategy )

Daksh Murkute

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10 Lessons (44m)
    • 1. INTRODUCTION

      5:34
    • 2. How to Choose a Broker for Scalping? ?

      1:25
    • 3. How to Set up the Chart.

      2:31
    • 4. Indicator 1

      5:33
    • 5. Indicator #2

      5:42
    • 6. Support and Resistance for Scalping

      5:07
    • 7. The Secret Scalping Strategy,

      5:37
    • 8. 10 Golden Rules

      5:15
    • 9. EXAMPLES

      10:11
    • 10. Risk Management.

      2:08
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About This Class

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Forex Scalping Masterclass 

Forex Scalping is one of the most famous style of trading forex . 

If you master the strategy of scalping you can easily see good amount of profit in a short interval of time. 

I have created this class for those who want to enter the world of scalping. 

This Master Class is all in one package which consist everything which you will need for mastering scalping. 

Content 

1. Introduction 

2. How to choose a Broker for Scalping 

3. How to set up the chart for Strategy 

4. Indicator 1 

5. Indicator 2

6. Understanding Support and Resistance 

7. Secret Scalping Strategy 

8. Rules for the Strategy 

9. Examples 

10. Risk Management 

Transcripts

1. INTRODUCTION: welcome to scalping master class. This class is all about mastering a scalping strategy. But before that, what s called scalping is a type of leading state. Were traders buy or sell currency for a short period of things to make profit Basically in scalping, leaders take great in expectation off small profit that do in a very short period off. It is one of the fastest form offering and one of the most free most states in Florence. Why is it so? Why are so many people interested in step? This is because scalping it's one off the fastest week to make huge profits in a very short period off. And it is also because of the benefits with scalping provides when compared to other forms off, like multiple sessions in scalping. You can get multiple set up or multiple traits throughout the day, unlike any other trading styles where you will have to wait for the entirely or even weeks for one single treat. So basically, you get more opportunities to place a free number two. The tourists in world in scalping, there is a very low risk in world that is, you have to risk a very small percentage off your account. Fortunate Number three Food table for smaller scalping is very suitable for those people who want to invest a very small amount in four extreme or who want to trade with smaller. You don't require a very huge amount or big account to get started with number four Active style off reading Scalping is a very active style off, really, when compared with other trading states, like a day trading or a swing trading strategy where you have to read and you have to be patient for a very long time, and many times you might feel inactives just because you're waiting for a long time in scalping, you get multiple centers. So even if you miss one opportunity that another one will be right around the corner scalping If done right, it is the fastest way to make huge profits in a very less spirit off. But remember, it needs to be done, right? So what other things that needs to be done properly for scalping to work for us and be profitable, number one, you need to have a proper scalping strategy, a strategy which has a good win rate or nice list to reward ratio and also multiple centers . The strategy should contain proper instructions for entry and exit points. That is, strategy should contain a clear and proper instruction off Antarctica trade and also exiting a trade. This is one of the most common shortcomings, which I see in scalping strategies. Number three Proco confirmations. There should be, at least through confirmations, that the strategy should have. I have seen people selling a skyping strategy and with data toe until a trait based on one confirmation, which can be very risky. Sea Give this thing in mind. Foredeck streaming is a very complex subject, and there are a lot of factors involvement. So if you are using relieve one confirmation for entering a trade, it can be very risky for you must at least have to confirmations before entering country number four. Risk management. I always say this no strategy is complete without a proper risk management. You should always have a risk management plan especially designed for that particular strategy. Number five specific rules for the stated scalping strategy should have a specific set of rules, which covers the guidelines like things to avoid robber exceptions and different situations , which might white braiding each and every race is different and that have to be certain rules. We should help you to make proper decisions and act according to this master class. Cover each and every point properly and clearly in this class, you will learn how to choose the right broke off force. You have to choose the right broker in order to be profitable and scalp. How to set up your chart indicated one indicated toe. How to use support and resistance for scalping. The secret scalping strategy strategies with 80% win rate and one is 23 This to reward then wouldn't rule for the strategy. 10 Golden Rules, which will cover all the important things like went to enter a trade when to get out off trade, what to avoid, and many other things which you are likely to face. Violating this stand Golden root will help you deal with it effectively multiple examples so that you will have a clear idea off how to implement destroyed it and the risk management plan. This strategy is one of the best helping strategy which you can use. One of the major benefits off this strategy is that you can combine the strategy with bed reading and spring break so that you can earn more profits at the free time, which you have with your current trading started. This strategy has more than enough potential to help you achieve your financial bulls with trading, so without wasting any time, let's get started. 2. How to Choose a Broker for Scalping? ?: when it comes to scalping, every bit matters and high spreads from Bukos can be too and wing. So it is very important for the traders or the scalpers who choose a broke up who provides you with low spirits. In this video, I will tell you how to choose a broker for Scott. I have explained a detailed procedure off choosing a good broker in my class Guide to Forex Trading Volume one And it also have some important basics which every four extra shouldn't . So if you haven't take that class yet, go and check it right now. The number one thing which you have to keep in mind, is that always shoes a broker that provides you with low spirits or a true easy in a town. In scalping, we profit from a very small percentage off trips that less wheat are get small pips. So it is very important that this spread is looped, so make sure that their broker provides you with low and tight spends. The next thing, which you have to look after, is regulated route. Many brokers, which are not regulated, manipulates the price and hunts down the stoppers as in scalping we use a very tight stop loss, and the brokers usually hunts down the stop loss, so always make sure that you use regulated broker. 3. How to Set up the Chart.: Hello and welcome to this video. In this video, I will tell you how to set up the chart and the indicators you will need in this strategy. In this strategy, you will need to indicators that is the ball in Japan and the Arisa. So for that, goto, trading you dot com and then flick on Indicators and strategies. Indicators in strategies. Search for relative strength. Index forced. That is our as I and click on it and the iris I will be added to your chart. So after that, goto Settings in Paris I and make sure that the up open level is 70 and the lower burn level is 30. You can choose the color according to you and then Goto input section and make sure that the length off the iris I is 14 and the source is too close. After that, click on OK and the settings off the iris. I will be done. Now you have to have ball in the bands to your chart, so goto indicators and strategies and search for ball in Japan and click on full indepent. Now, as you have to add to bowl in depends against hers for Bollinger bands and and add one mobile indepent to your chart. After that, go to settings and then make sure that the length off the Bollinger Band is 20 because the length is the simple moving average that is this life. So make sure that the moving average is 20. After that, the source should be close than the standard deviation off. One ball in the band should be, too, and then go to style. And then you can select the color off the ball independent according to you. After that, click on OK, now go to next Bollinger Band Settings and then in the input section. The length should be 20 and the standard deviation this time should be 2.5, and the rest will be seen. Now again in the style section. Make sure that the color off this ball in the band should be different than the previous ball in the bend. So the upper and the lower bowl in Japan I'm choosing the color as red. You can choose whatever color you want and then click on OK, so now you have added the iris I and the Bollinger bands to your charts, so your charge has been set up. So see you in the next class 4. Indicator 1: hello and welcome back in the previous video, I showed you water the indicators that you will need and how to add it. I believe that before you use any strategy, you should have all the knowledge about the tools used in that particular state is because it will help you to see the things very clearly. So in this class, I will tell you water boil independents and what is the significance off it? A Boil in Japan is a technical fuel developed by John Bollinger. Boiling depend consist off two lines and a simple moving average. These two lines are distance away from the simple moving average, and that distance is given but standard deviation, So standard deviation basically tells you the wall ability in the market. If the upper band and low ban a closer to the simple moving average, it tells us that the volatility in the market is very new. And if the upper band and the lower band are wide away from the moving average, it tells us that the volatility is high. Manage haters use Bollinger Band in their state, and each one of them use it different. We will use Bollinger Band to find support and resistance areas on smaller timeframe. Let us learn how to use Bollinger bent to find support and resistance area whenever the price moves closer to the upper back or that. Is it the market this and we call it resistance. And whenever the market moves closer to the lower band or touches it, the market is also, and we call it support in this chart you can clearly see as the price moves toward the upper band. It tells that the price is overboard, and hence the upper band X hasn't resistance, and the price gets pushed down. And whenever the place gets pushed down toward the lower Bollinger band, it tells that the prices oversold. And so the ball into band practice hasn't support and the price gets pushed up, and the price moves between the ball in the band in the savory. So the upper bank is acting as a resistance, and so the sailors getting and the lower band is acting as a support, and so by is getting the price moves like this majority off the time. But sometimes the price does not agree with the ball in Japan and keeps moving in any one direction as you can see you. The price first touched the upper band, and so it moved on, but then it already touched the lower band, but it did not moved up, and it kept moving in the downward direction. So this happens because off the ball independent Greece and the Squeeze Brickle. So let us try to understand what is born in the band Squeeze and the squeeze break. These two concepts are very important for the strategy, so make sure you pay attention to this and understand it. Clearly, most off the times the price move freely between these two ball independent, but sometimes the Bullingdon bent acts like something's pressing them from both the sides. And so the ball in the band gets narrow. That is, they get close to the moving average, and it looks like the boil in Japan s creased together, and this is called a squeeze. Now, whenever squeeze occurs, it tells us that the market is due for break up, and so, after a squeeze V C that the price moves in any one direction like we saw over you. So when the price moves in any one direction, after the squeeze, it is called as squeeze Braco as you can CEO The squeeze Ochoa, and then the price started to move in any one direction. So this is called a squeeze break out, and this is called as squeeze. So let us take a few examples to understand what a squeeze and squeeze recalled. So in this example, you can see that the price was moving freely between these two ball. In Japan's, that is, the Boland events were far away from the moving average. But then, at this point, you can see the Bollinger mints came closer to the moving average. It was like something is pressing them to get off. And so this area where the ball in the bends got closer to the moving average. This area is called as squeeze, and after that the price started to move in any one direction. That is, you can see that after the squeeze, the price started to move down and it kept moving down. So this is called a squeeze brickle. Let's take one more example to understand it, So at this point you can see that the Bollinger bands were vital that as they were far away from the moving average, and the price was moving freely inside these two board independence. But again, at this point at this idea, the boiling depends came closer to each other. That is, they came closer to the moving average and they were behaving like something is pressing them. And so this idea from Europe two year, this area is called a squeeze. And after the squeeze, we saw that the price moved down. Let us. It is moving in any one direction. So this is called as squeeze Breakout. So this breakout is happening after the squeeze. So therefore, it is called a squeeze. Brecko. So that's all for this. Really? You see you in the next last. 5. Indicator #2: Hello and welcome back in the previous video I told you about Bollinger mints in this video , I will tell you what does Iressa why I have been using it and also about divergence. Still, waters I reside basically stands for relative strength index and it is a moment and postulator indicator that is It tells us if there is a moment, um, change in the market Now the Arisa indicator consists off two levels between which the ERISA or salutes the upper level is 70 level and indicates that the price is over and the lower level is 30 level and indicates that the prices over food So in simple terms, when the price moves to the abort level, that is this one that is level 70 sellers getting invent the price moves to the oversold level that is level 30 buyers getting and push the price up. So now if you look at the price action and the indicator that does the Arisa indicator, you can see that the iressa is just following the dissection. That is, if the price moves down the price. The iris also move stone If the price creates alot alot the iris also creates a will. If the price moves up, the Arisa moves up. And if the price creates the higher head, the RSL, it'll do the same. So this clearly tells us that Marissa is made to follow the price action. But many times the officer does not agree with the price and does the opposer thing. And this is called diver tins. So let us see what is diverted. The meaning off the word divergence is to move apart. That is, when the virus a indicator and the price action does not agree with each other. It is called as the diverted. Normally, Arisa follows the price action. That is, if the price is creating the lolo the ideas that will do the same if the price is creating higher the IRA. Several also Buddha see. But in case off divergence, the Assad does not agree with the pres action and opposes it like you can see you the prices creating higher. But if you compare it with the Iressa indicators, Arisa indicator has created a lower hands. So this is called S diversions are divergence tells us that there is momentum change in the market. There are two types of diversions, bullish divergence and Berries diversions. Now let us try to understand each one separately. So later said, this is the price action window and this is the indicator window. Now, if the price is moving down like this and creating continuous lulu the iris, I should also do the same. But in case off Diogenes, the price forced two years know alot. But at the oratory level, it creates a higher law instead off a little. So the IRA size creating a high low. But the price action is creating the lower. So this tells us that there is there diverted. Now this divergence is formed at the oversold level. So this is called Les a bullish divergence. And it tells us that there is a moment, um, shift from sellers to buyers and more buyers are now in the market. And so the price moves up. Now let us see what is bearish divergence or bearish divergence. This form at the KOA board level off the Harrison that is this level. So which means that if the price is creating continuous higher highs like this, the artist opposes it. There does, that is that creates lower, higher instant and this is called S Barrish diverted because the price action is creating higher heads. But the Arisa is creating Lord High Instant. And this tells us that there is momentum shift from the buyers to sellers and hence the price moves down after the divergence. This form. Now, let us take some examples to understand this thing clearly like if you see you at this point, the prices creating higher higher. But if you compare this thing with the indicator indicator is creating lower instant. And this is court as a Bradish diversions because it is formed at the or board level again . At this point, the price created a lulu. But when you compare this thing with the other side, the idea say created a higher, low instant. So this is called as a bullish diverted, as you can see, after the divergences from the price started to move up again. At this point in this example, the market was leading Lulu. But when you compare it with the Arisa, it did not create any new lolo or Aloha. So this tells us that there is a divergence in the market, and so the price started moving up again. At this point, the price created the low. But when you compare it with the Arisa indicator, it created a higher law instead. And so this is telling us that there is a bullish divergence. And so the praise moved up. Also, at this point, the price was creating continuous Lolo. So at this stage, the price created a lolo. But when you compare the same thing with the indicator, the indicator created a higher law instead off. And after that, the price started to move up. So this is sport s or divergence. So this was a bullish divergence, and this is called as devil. So that's all for this video. See you in the next one. 6. Support and Resistance for Scalping: support and resistance is the most widely used concept in Fort Extending. Almost every traitor has used it once in its trading career. Support and resistance is mostly used in day trading and swing trading, but there is a way by which you can use it in scalping. If you understand, how do you support and resistance in scalping, it can be very beneficial for you. And in this class, I will tell you what this support and resistance, the psychology behind it and how to use it in scalp support and resistance are the areas to visit. The traders react so psychologically. Support is the area off significance for the BIOS and resistance is the area off significance for the cells And technically support is the area or price level from which the BIOS enter the market and push the price of and resistance is the area or price level from where sellers enter the market and push the price down. So in smaller timeframes, several minor support and resistance areas are formed. Now these are formed when the price move sideways, that is, they move in a range. So whenever the price hits the resistance, so let us say this is a range and whenever the price hurts the resistance, it is pushed back down and whenever the price hits a support, it is pushed back up. So in this range, basically this level is acting as a support and this is acting as a resistance. So in smaller timeframe we usually see that a lot of ranges are formed and so we use those range to find support and resistance. That is minor supported resistance on smaller timeframes. Now, whenever the price breaks the resistance area and go past it, this resistance area act as a support. So whenever the price after breaking the resistance comes back to this area, this area act as a support and then push the price higher and in the same way, whenever the price brings the support area, it then act as resistance. So whenever the price breaks the support and then come back to this level, this will act as the resistance for the place and hence will push the price lower. So now let us take a few examples off minor support and resistance. So you're I have mouth a couple of examples off it in this in this example, you can see at forced. The price was down trending and the price was moving them. So at this point, buyers entered and pushed the price of and again at this point, the price drop down to the same level. So let at this level or this area when the price drops from your till this point, we already saw that the price has moved from moved up from this point all year. So we will draw a line from Broad Zone from this point like this and this is this will be our support area. And then again, you can see that after that the price started to move up and it reads toe a level from where the price of previously moved on from this area. So again, this was acting as a resistance area. So this is how you draw support and resistance in the 15 minute chart. Now, let us take few examples and see what happens when any off these zones are broken. Like I have mark a couple of examples for that too. If you can see the price was reacting to this area and the price was moving sideways. So this was our resistance area And this was our support area to and this was our support media. So, as you can see, after the price broke through this level, that is this resistance area disgrace moved up till this level. So let us it. This was the first time vendor sellers getting and when the price moved down, it moved on to this level, which was our previous resistance. So and so it acted as in support. So the price moved up from this point. Now again, if you consider this and if you move this place, move this stone horizontally like this, the price again went through this level from where it last time that he was. And so it moved on and again it is doing the same. So finally the price again broke through it. It broke the resistance. And then again, Rob, don't do this level. And this level is now acting as support. So hence whenever resistance is broken, it acts as in support. And whenever a support is broken, it acts as in resistance. So this is how you draw support and resistance for scalping. That is on the 15 minutes chart. That's all for this video. See you in the next one 7. The Secret Scalping Strategy, : till now we have learned everything we need for the strategy. Now it is the time to learn the most important part. That is the strategy. Whatever happens in the market, that is, If the price moves up, all the price moves toe. It happens. You do two important reasons. That is the significance off the idea and the momentum change. We will use the normal support and resistance and the boiling depend support and resistance to find the significant or the important areas. And then we will use divergence to find the moment. Um, change. Based on this, I have divided the site ups in two parts that they set up and the A plus setups in the A set of we will use the Bollinger bent and the divergence to enter poetry. And in a plus setups, we will use the normal support and resistance. What into bend and diversions who enter portrait. Now let us start by understanding the sedatives in the A set up. All you have to do is use the ball in Japan as support and resistance and the divergence for the moment of change. So you have to enter a by trade when the price patches the doable in Japan and at the same time we have a divergence on the virus. So in this example, you can see the prices creating a lower low. But the Arisa has created a higher, low instant, and plus the price is also touching the Bollinger back. So we enter a bite late at this point and you have to keep the stop loss off this trade, 10 to 15 dips below the level and you have to close the trade vendor price touches the upper Bollinger bent, and for a cell entry, you have to enter a celebrate when the price started the bubble in Japan. Plus that is our divergence on the Irish side. So in this example, you can see the price is touching a Pro Bowl in Japan, and when you've compared this with the Arisa, the prices created higher high. But when you converted with the Iressa, it has created a lower instant, and so we have a 70. So you enter the celebrate at this point and keep the stop loss 15 trips above this level, and you close the trade. When the price touches the Louisville in Japan, the reason why we're doing this is because the Bollinger Band act as an eight year off significance for the buyers and sellers, and the divergence tells us that there is a momentum shift in the back. So in case off Abi set up when we see that the price has touched the lower bowl indepent, it tells us that this area is important for the buyers. And when we have at our divergence on the same point, it confirms that there is a moment, um, ship from sellers to buyers. And so the price moves up in case off a cell entry. When we see that the price has touched the ah bubble in Japan, it tells us that this area is important for the sellers, which is that this is the resistance area. And when we have divergence at the same point, it confirms that there has beena mo mentum shipped from buyers to sellers, and so sailors coming and Brewster and foods the brake fluid. Now let us see water A plus setups. A plus setups provides us with a little more confirmation and hence allows us to use a tight stop. Close these setups give us a very higher history world. In the A plus setups, you have to use normal support resistance plus Bollinger bands to fight significant areas. And then you have to use the divergence to find a moment of change. So in case off a plus set up, you have to enter a by trade. When you have all three confirmations, that is, there is a support area and then the prices touching the lower bowl in Japan. Plus there is a divergence for at the same point as you can see in this set up, the price was at a great support level. Plus the price has touched the lower bowl indepent so telling us that the prices at a significant area and after that we saw her divergence at the same point, telling us that there has beena momentum shift from sellers to buyers, and so we enter over you and then the price moves up in case off a plus set up, you have to keep your stuff lost only 5 to 10 pips below your entry point, and you have to close the trail as soon as the price reached the operable in Japan. Now, in case over cell entry. You have to enter a celebrate when you have all the three confirmations that this when the price is touching the upper Bollinger band when the price is at a resistance idea the diver , this is form. In this example, you can see the price was touching the upper bowl independent. Plus the price was at the resistance area. And then when be convert the price with the iris, there was a nice divergence. So we enter a cell trait at this point when the divergence is formed and we keep the stop close 10 pips above this and we close the street or take the profit when the price reaches the noble independent. So these were the a n A plus setups. That's all for this video. See you in the next one. 8. 10 Golden Rules: when you will first use this strategy, there will be a lot of doubts in your mind. Many a times situations miracle when you don't know what needs to rhythm So toe welcome all your doubt. And to make things clear for you, I have developed 10 golden roots which will help you deal with all your doubts very effectively in this class. I will tell you about those sandals and clear all your notes. Rule number one rules for a set up for a set up, the price should be touching the lower or the upper Bollinger band. After that, there should be a divergent on Marissa. So in this case, you can see the price is touching the lower Bollinger Band. Plus, there is a divergence on the Edison. So this is a perfect entry for the A set up for rule number two rules. For a place set up for a plus setups, you should have support or resistance area, that is, the price should be on support or resistance area, and the price should be inside or on the ball in Japan. And there should be a divergence in the iris, like in this example, you can see that the prices on a support area plus the prices on the ball in Japan and there is a divergence in the so before you enter a plus set up, make sure that you get these three confirmations. Rule number three. The divergence should be formed on or work or oversold levels. What I mean by this is the divergence should always be formed on this level. That is the level 70 or level 30. That is over what level or over 4 11 Now there is an exception to it. Like many a times, diversions will be formed. Something like this here is a perfect example of this so you can see the price water the ball in judgment. But there is an exception for it. That is, if the first touch off the divergence is on the over work or or full level and the second that is not. Then it is accepted. You should at least have one touch on the Arisa. What I mean by this is many a times you will see setups like this. Like in this case, the first touch was on the other side. That is tardy levels. But the second touch was above it. So in this case, these type of setups are accepted. Rule number four The price should form divergence on the ball in Japan that does it should at least vegetable indepent or be between or above or below there to boil in. Japan's like. In this case, the price is touching the ball in defense, and then it has created a diary. Jin's so setups like this are accepted. Rule number five ah, world setups. When markets move to close, Prue double in Japan, that is squeeze. Break out whenever there squeeze break out in the market. You cannot predict that. How much time is it really going to take for the breakout to end? So award the site ups went There is a squeeze break up. Rule number six No made candle decisions. Now always wait for the candle to complete whenever you trade are diversions like if you see or divergence at this point, you will have to wait for the candle to finish and form inside or on the Bollinger band. And then only you have to enter a trade. You don't have to make made candle decisions. Rule number seven The stop loss off the a side of will always be 15 dips below or above your entries, and the stop loss off a plus set up will be 10 trips below or above your entry. Now this can change from time today. Now there is exception to it like if the markets are very volatile, then you can adjust your stop loss according to it Rule number. It always take your profit whenever the price moves through the oppose it ball in Japan, Rule number nine do not treat her de minutes prior or after the news release. That is, there are certain news going on in the market. For that you have to go toe for ex factory dot com and then there you will see there are different news going on in the market daily, so make sure that you don't trade 20 minutes prior to or after the news release and the news which you have to award as the ones which have red marker entered. So as you can see you, this is a red marker news and this is at 5:30 a.m. So you have to stop trading at five til six in and after that you can treat rule number 10. That timeframe, and with the strategy works is five minutes and 15 minutes. So you have to only use the strategy on five minutes time frame and 15 minutes time frame. 9. EXAMPLES: Hello and welcome to this, will you? I have made this video to make you understand all the different scenarios which you are likely to face while trading this strategy. So make sure that you go through all the examples which I'm going to show you in this video and make sure you take notes off it. Okay, so we are on euro USD 15 minutes chart. So we have the first set up over your At this point, you can see that the price moved down the Bollinger Band and then moved up and created a lower in. And if we compare it with the other side, the Paris I have created the higher Lou instead. And also the price is on the ball in Japan. So we enter ou. So when we enter at this point, we keep our stop loss. End of 15 dips below and we closer trade when the when the price hits the ball independent . But you can see in this street the price moved to the moving evidence and then drop back down. So we will not be in a loss as our stop loss will be 15 trips below that will be to this level so it won't take our stop loss. But then as the price moves nearby, the moving average we will said the stop loss at break. Even so, the trade will take our stop loss and then again in the next read we got another entry at this point. So the endo then the price and move below this law and creates alone and clears are lower low. So at this point, the price created a low low. But we compare it with the Iressa and it created a high low instead. So we enter at this point when the lulu under divisions is formed and we keep our stop loss 15 dips below that and we will close the trade when the price touches the upper ball in Japan. So that is 26 pips. So we will own around 26 pips from the street. And then again after that trade, the price again moved down. It has the ball independent and created again Allo, Allo. So when we compare this with the other side, the address I created a higher low instant. So we will enter window divergence is formed and we will keep our stop loss, 15 dips below odor and the media So which will be somewhere near you. And we will close the trade whenever the bull independent whenever the ah bubble independent is touched by the price. So in this straight, the full independence starts around at this level. So we will close our trade with eight pips off Crawford now moving forward. As you can see, at this point, the price was moving down and it was a squeeze. After the squeeze, the praise give a breakout. So this was a squeeze break out. So as I've told you in the rule section that you have to award these kind off setups when the price is moving very close to the bull independent, you have to Howard these kind off set ups so we won't get into this set up now again, moving forward at this point. Yeah. I have also told you in the rules that you have to award any mid candle decisions. I told you that because off this, like in this example, you can see that the price moved up and then created a low a low. But at first you would have thought that the price would have would create a divergence. And so if you would have made a mid candle decision, you have been in a loss. So that is the reason that you have to award any mid candle decisions, because in this example you can clearly see that the price did not form any divergence. And the Place Vendome in the next read the price again created a low. It has the ball in Japan, so we would have endured at this point as there is a divergence plus the prices touching the ball in Japan so you would have and audio get the stop loss 10 pips or 15 dips below and close. This enclosed the trade, but the place reaches the above Bollinger band, so that would be around 16 rips off rocket. The same thing happen again. At this point, after the place gave us alot, it again moved on and give us another lawyer. But this time the price was not catching the ball in Japan, so we did not enter this set up as the price did not double in Japan. So you have to avoid the setups when the price doesn't as the ball is a ban and two years of divergence because those that those are not the setups were looking for. So now, moving forward like the state, few more examples over now again, you thought that at this point there was a squeeze. The price was in a squeeze. But then we saw a squeeze break out so we will not endure anywhere near you. But after that, the price started moving sideways and then it moved down as the ball in Japan and we saw that I wasn't so people and does on many a year. And so the place moved around well, pips from there. So always make sure that whenever you see a squeeze wait for the price to come nearby the moving average area and only then under the next set up after that, in this example, the place drop down created a higher when we compared with the Iressa, the Irish have was in the same level. So that is a divergence. And the divergence this form on the bowline judgment. So we enter over you keep our store clothes 5 to 10 10 to 15 pips above and then we close with 18 rips off profit So again we have an example off he set up At this point, the place was previously in a squeeze. Then we saw squeeze small squeeze breakout. But after that, the place moved to the moving average and then it came down to the ball in Japan. And so we saw our divergence at this point. So we enter a trade oil keep stop, lost and perhaps below or £15.1,000,000,015 dips below. Like in this case, the volatilities very low. Like the volatility of the market that is off the ball in the band is only 10 pills. So in this case, we we can use a stroke clothes off only five trips because the volatility is low and so the market won't move that first. So we keep the stop loss off five pips and then we close the but 10 pips off brokered when the price just a bubble in Japan. So when I told you in the rule that you have to sometimes I just the stop close according to the market conditions, that is the volatility of the market. What it meant was this you have to check if the volatilities off the market is low or high . Like in this case, the volatility of the market was very if you count from your two year, the market movement was only tenders. So you, in this case, you can keep a stop low, slightly lower, that is from 5 to 10 pips. So in this case, we will keep us operas off five pips and then we go down with a nice 10 pips off, then again moving forward. Let us take a few more examples. Yeah, In this case, the price created higher high. But when we compare it with the Arisa, it created a Laura. And so we end up at this point, the wall ability was no. There is only 10 tips for we keep the stop loss that five pips and then we get away when the board in Japan distressed by the place with seven pips off for food. Now, in this example, you can see the price moved on to this support level like this is the A plus set up. So this was our support area. Previously, the price moved up from this level. So the price this time got nearby this level, we will enter a trade when the candles form on the ball in Japan or near the ball independent and we will keep our stop loss around 5 to 10 pips as the water deal. It is very low. And then we will get away with 6 to 7 tips off offered in this. Now we have toe avoid these type off raise. Why? The reason is because in this type of rate, the there was a divergence for sure. But the divergence was not on a war, boar or force for level like in this case, the divergence was north corner or for 11. So we will award this kind of trades again. We have an example at this point off the A plus and set up your this was the resistance. So the price was initially in a squeeze and then a squeeze break out. But then the price game nearby the moving average and then moved up. So, as I told you after the squeeze, you have to wait for the price to come nearby moving average and then you have to get into any trade. So in this case, the price Give me other moving Everest. Then it moved up. So you will enter a trade at this point as there is a divergence. And then you will get out when the price hit the ball in Japan. So these were the few examples on how you have to create this strategy. So I hope you understood everything. That's all for this video. See you in the next one. 10. Risk Management.: no matter what strategy you use or how much wind rate your strategy provides you with. If you don't have a proper risk management plan, then it is off new use. In this video, I have actually a simple risk management rule, which you have to use. Why, Using this strategy, you have to risk only 3 to 5% off your account poultry, and you can enter only one trade for prayer. Also, take maximum three plates at a time. So what I meant by risking 3 to 5% portrait is that you have to choose the Lord size based on the risk in world. In a tree, for example, let us consider that you use Ah, $100 account. Now you got a great opportunity, which has a risk off 10 trips, so 5% off $100 is equal to $5. So based on this, your list is $5. That is, you can take a rest off $5 portrayed, so you'll have to use a lot size off 0.5 or less as 10 perhaps with a lot size of 0.5 is equal to $5 that is equal to the amount off risk which are allowed to take. So using this risk management plan, you will open a trade with a lot size off 0.5 and keep the stop loss to 10 pips. So this will make sure that even if you lose that trade, it won't blow up your account. Let us take another example. Let us say you have a count off $100 and you got an opportunity, which has a risk off five quips. So, as you can risk will live 3 to 5% off your account. So this time you can use a lot size off. 0.10 has five reps with 0.10 is equal to $5 which is equal to the amount of risk which you are allowed to take. So this is a very simple and easy risk management rule, which you have to follow while using this strategy