Unique Price Action Scalping Method - Introduction

This is the scalping method - fast surfing, with pure price action, developed by trader Jjrvat on the Elite trader forum.

This method will distinguish between:
  • Trading according to an indicator; and
  • Use an indicator to trade price action
The basic approach is as follows
  • Using a slow-moving average to identify the main trend of the market
  • Then use a fast-moving average to determine the price wave;
  • When we see higher or lower highs, we determine the market structure
  • From there enter the order at the end of a corrective wave, or pullback
Unique Price Action Scalping Method - Rule of entry

The tools of the method
  • Weighted moving average WMA 240 cycles to identify the main trend
  • The Hull moving average of 21 cycles determines the price wave
Long order entry rules:
  • WMA 240 line upwards;
  • The HMA 21 shows higher highs and higher lows
  • Wait for the HMA line to start correcting down (pull back)
  • LONG when the price closes above the HMA
However, if the pullback goes below the previous bottom, the setup becomes invalid.

SHORT order entry rules:
  • WMA 240 line is facing downwards;
  • The HMA 21 shows lower highs and lower lows
  • Wait for the HMA line to start correcting (pull back)
  • SHORT when the price closes below the HMA
Unique Price Action Scalping Method - Example

In the examples below, we will apply the rules on the above order according to the daily chart (D1), even the monthly chart (MN1). But isn't this a scalping system? So what?

Scalping's idea is to catch a single wave. Just by meeting that condition, the strategy is called scalping, regardless of the time frame.

Example 1: FDAX 3 minutes

  1. WMA descending (red line) indicates a downtrend
  2. The HMA line continuously changes color, shows the structure of a lower high-low low, confirms a downtrend
  3. HMA signals a bullish correction wave (green).
  4. This bar closed below HMA and triggered a short order
  5. Notice the pin bar candlestick, this candle has a peak that has broken swing high before, but the correction is a rejected candle, so you can enter this option.
Example 2: Swing trade stocks

  1. WMA is heading down, indicating a downward trend
  2. The lower highs, the clear lower low of the HMA, we make a sell-down trade
  3. The candlestick closed below HMA, triggering a short sell
Hold the market until HMA turns green to get a good profit