Today we are trading the DAX 40 (DE40) on the 15-minute time frame. We are using the scalping breakout London session strategy. We can see that an hour before the London market opened we had our break-out candle which took out the previous points of support set during the Asian Market session.
I have put a green box around the break-out candle. This impulsive breakout candle was our short entry signal. The candle itself broke through the support levels around 12648 and closed slightly below the deepest wick (depending on which exchange you were looking at)
To have a successful short entry signal, we need to see the impulsive breakout candle close very close to its low. We also need to see the top part of the candle sit through the moving average. Once we see this, our signal is activated.
Now, how do we manage to catch these signals? Like I have said in previous posts, we need to watch the charts an hour before the London market opens up because the breakout may come early as it did today. The candles do not necessarily have to break out of the Asian zone as the London market opens up. Market makers and institutions can decide to break out of any range and at any point. So, rather make sure you are awake and in front of the charts an hour before the London session begins. This will ensure that you are around to catch any possible moves.
We entered into a short position as the breakout candle closed. We used a market order and placed our targets at around 12548 ensuring we can get a risk to reward of one to two.
Our 10 pip stop loss was set above the top of the breakout candle at 12680.
If you have the time to scalp the DAX on the 15-minute chart, then my advice would be to give this strategy a chance. Before using it on a live account, make sure to back-test it thoroughly to increase and develop confidence and comfortability.
Scalping is a different beast completely when comparing it to swing trading. Those of you that follow our youtube channel know that I enjoy doing both of these. I am primarily a swing trader and I enjoy using order blocks on the 4-hour time frame for three of the major currency pairs.
However, when I have the time to sit in front of the charts, I do enjoy scalping the DAX on the 15-minute chart during the London and Newyork Market sessions. We tend to see a lot of volatility around the opening of these sessions and this volatility can be a day trader's best friend. This is what we need to make money and secure profits.
I have put a green box around the break-out candle. This impulsive breakout candle was our short entry signal. The candle itself broke through the support levels around 12648 and closed slightly below the deepest wick (depending on which exchange you were looking at)
To have a successful short entry signal, we need to see the impulsive breakout candle close very close to its low. We also need to see the top part of the candle sit through the moving average. Once we see this, our signal is activated.
Now, how do we manage to catch these signals? Like I have said in previous posts, we need to watch the charts an hour before the London market opens up because the breakout may come early as it did today. The candles do not necessarily have to break out of the Asian zone as the London market opens up. Market makers and institutions can decide to break out of any range and at any point. So, rather make sure you are awake and in front of the charts an hour before the London session begins. This will ensure that you are around to catch any possible moves.
We entered into a short position as the breakout candle closed. We used a market order and placed our targets at around 12548 ensuring we can get a risk to reward of one to two.
Our 10 pip stop loss was set above the top of the breakout candle at 12680.
If you have the time to scalp the DAX on the 15-minute chart, then my advice would be to give this strategy a chance. Before using it on a live account, make sure to back-test it thoroughly to increase and develop confidence and comfortability.
Scalping is a different beast completely when comparing it to swing trading. Those of you that follow our youtube channel know that I enjoy doing both of these. I am primarily a swing trader and I enjoy using order blocks on the 4-hour time frame for three of the major currency pairs.
However, when I have the time to sit in front of the charts, I do enjoy scalping the DAX on the 15-minute chart during the London and Newyork Market sessions. We tend to see a lot of volatility around the opening of these sessions and this volatility can be a day trader's best friend. This is what we need to make money and secure profits.
