Hello and welcome back to the Complete Scout Training Course, My Wealth, The Education.
In this video I'll show some examples of scalping with the morning star and Evening Star.
Patterns.
Now, again, keep in mind that we have to use a little bit of artistic license in these patterns.
But we do have the ability to trade them, or at least an amalgamation of them.
So Dogecoin 15 cent level, an area that would attract a certain amount of attention.
As you can see, multiple times we ended up shooting higher and then pulling back after a shot higher.
So you could call this a evening star.
Where would you like to go to?
You'd like to go down there?
Did break here and then you kind of had to sit on it for a while.
This was about 25 minutes or so and then it broke down.
So it wasn't exactly a quick scalp, but it did give you a little bit of a heads up and this type of.
Trading environment.
You can see that the stochastic had not only got into the oversold area, but it started to drop while
price was still rising.
So a little bit of divergence there as well.
So this evening, some, of course, would have attracted a little bit of attention.
Just get a Facebook.
And you can see that.
Notice how we had been falling pretty significantly here.
Then we turned around to make a big move.
We pulled back and formed this pattern here that would have been a morning star.
So the first thing I would look at is there was a little bit of support there previously, as well as
resistance, not anything major, but it's an area where you might see a bit of a reaction.
So do keep that in mind.
You would also start to look at your moving averages.
So this is a nine.
Notice how the star itself touched the nine.
And then we broke above there so that.
Candlestick.
There was a continuation.
Stop loss goes there.
Once you get above here, then you can really get going.
Now, that's the thing.
You would have had to have been willing to ride it for a while.
That's an area that I would have been interested in trying to target.
So that candlestick essentially got there.
Not quite 1 to 1, though, so.
Not the best setup ever.
This area here would be a target that is a little bit more doable.
That's 2 to 1 and then 3 to 1.
So it really comes down to how long you're willing to hang on to the trade.
But you can see you did get that set up there.
And that's one of the troubles that you can run into when you're trying to scalp is sometimes you have
to just simply let things go because you're like, Hey, I've got a less than 1 to 1 shot and that is
an account killer.
So scalping is very difficult.
It takes a lot of patience, which is something that people don't really talk about.
Here is an evening star.
So if we can break down through all of this, that candlestick, that candlestick and that candlestick,
and we finally do a candlestick or two later, you make it a little run to here.
That's exactly what happened.
Your risk reward 1 to 1.
You could, if you wanted to be a little more aggressive, try to press it down to here.
But then you're starting to talk about a two hour trade.
Might be a little bit much for a scalp.
So let's see.
Let's do forex.
Pound yen.
This pair are extraordinarily volatile.
You can make out the evening star set up here.
You can also call it a shooting star.
So you could have gotten in there.
But if you decided to wait for all of that, you had to wait for about 15, 20 minutes or so before
everything kind of kicked off.
Would have been right there.
Your stop would have been there.
Where do you think you're going?
Right down here.
Pretty straightforward.
And in fact, once it actually kicks off, then once you've broken through all of this, then you're
looking at a pretty significant sell off in what looks to be an about.
12 ish minutes or so.
And that evening star evening star right here got a breakthrough that first which coincides with this
previous resistance.
So you can see that.
Her previous support, I should say.
So let's go ahead and mark that area out.
Right there.
That candlestick we rakaia failed here.
Form the pattern there.
Pierce This came back all the way up to here.
Found resistance again.
Your stop would be there.
And then that beautiful candlestick there really got things going.
You would have hit a target there pretty quickly.
And then this target here about a half an hour later.
So let's go ahead and remove all the drawings.
And.
Another A crypto.
Well, let's do a stock.
GameStop.
So gamestop's not as liquid.
So you get a lot of gaps here.
So technically this here would be an evening star.
Support resistance.
Resistance.
So that's an interesting little setup there.
Let's get rid of the EMA.
Let's pull up the Bollinger bands.
And we did, in fact, gap above the top of it.
At the very least, if you use a Bollinger bands as a guide, you're looking to hit this 20 SMA.
So that's your target.
That's your stop loss.
And there's your entry.
So a nice little setup, 3 to 1 pretty quickly.
Pretty quickly hit and as a result, easy trade.
So what I also like about this is it goes with the overall selling of GameStop.
So with that, we're done with module three, which was scalping with candlestick patterns.
The next video we begin module for scalping with chart patterns, looking at something called a double
top and a double bottom.