Full transcript (2154 words)
If you're looking for a scalping strategy that works on low time frames, has a high probability of success, and is easy to execute, then this video is for you. Today, I'm going to reveal a unique scalping strategy that works every single day, and can be traded on any asset. Now, to prove that this strategy actually works, I'm also going to show real trade examples of this strategy in live market conditions so you can confidently trade it yourself after watching this video. So without further ado, let's dive in. Now this strategy revolves around a concept called manipulation. So what is manipulation? In simple terms, manipulation happens when price breaks a liquidity level and then quickly reverses in the opposite direction. Let's look at an example. Let's say we have a support level on the chart. Now, common trading knowledge would teach us that because price has rejected this level multiple times before, there's a good chance price will reject it again. So, when price reaches the support level, the typical strategy is to take a buy position at that support level with a stop-loss slightly below it and expect price to reverse higher. However, what usually happens when you trade like this is that instead of bouncing, price will sweep below the support level, triggering your stop-loss first, only to then reverse and move in the exact direction you originally wanted. And I'm sure every trader on Earth has experienced this at some point during their trading career. Now, this exact concept is what we call manipulation, which is when price gets manipulated into hitting people's stop- losses only to then recover shortly after. Now, some of you might ask, what makes manipulation so unique? Why do we use this concept as our strategy? The reason is because manipulation often signals that prices bottomed out and is usually followed by a strong reversal after. Which means if we can properly time our entry during a manipulation move, we could potentially capture a large price move, giving us a good risk-to-reward trade. So here's how the strategy works. First, to simplify everything, I'll break this strategy down into four simple steps. Step one is to mark a liquidity level. So a liquidity level is when price moves toward a price point, then moves away from it significantly. That last point before the price pivoted is what we call a liquidity level, which you can mark by simply drawing a line. Now, as we know, major swing points are usually common spots for most traders to place their stop- losses. Because of that, these points become a clear target for manipulation. A good rule of thumb when drawing liquidity levels is if you need to look hard to find one, then it's most likely not a good liquidity level. A good liquidity level needs to be obvious, something other traders can clearly see as well. For this strategy, I would suggest marking the liquidity levels on higher time frames like the 15minut to the 4hour chart. Let's look at an example of this. In this chart, we're on the 15minut time frame on the NASDAQ futures chart. Here we can see the price coming down and then reverses back up significantly from this level. This makes it an obvious liquidity level. Once a liquidity level is identified, we move to step two, wait for a manipulation. So, as discussed, a manipulation simply means price sweeps a liquidity level. In this example, we wait for price to break below the liquidity level like this. Once a manipulation is identified, we can move to step three. Now this step is the most important as this will determine how effective the strategy will be. But before that I want to quickly mention that every single day I share daily market analysis and trade setups inside my free telegram community. For example, I shared a buy setup on a coin called Suie and just one week later it was up 22%. Members who took that setup were able to capitalize on that move. So, if you want to learn how a professional trader analyzes the market, make sure to join my free Telegram community. The link is in the description. Now, back to step three. So, after a manipulation is identified, we look for something called an inverse fair value gap. Now, most of you may have already heard of a fair value gap, but for those of you who don't know, here's a quick explanation. A fair value gap is simply a three candle sequence where the high of the first candle and the low of the third candle do not overlap with the middle candle's body. This creates a visible gap which is called the fair value gap. So remember if there's no gap then it's not a fair value gap. Now for this strategy we're not looking for a regular fair value gap. Instead we're looking for something called an inverse fair value gap. An inverse fair value gap happens when price breaks a fair value gap and closes in the opposite direction. So when a fair value gap forms and price breaks through it in the opposite direction, that's what we call an inverse fair value gap. So looking at the chart, we want to look for an inverse fair value gap forming near the manipulation. And in this example, we can actually spot a fair value gap because there's a clear gap on this candle's body. Right after that, we can see price breaks above the fair value gap and closes above it. So now we officially have an inverse fair value gap. So let's recap what we currently have. First, we have an obvious liquidity level. Next, we have a manipulation of that liquidity level. And finally, we have an inverse fair value gap forming near that manipulation. Once these three criteria are met, we move to step four, the final step, which is the entry. For the entry, we place a buy position at the close of the inverse fair value gap. The stop loss goes slightly below the gap, and the takerit can be set at two times stop-loss. Or if you're aiming for a bigger move, you can instead target the liquidity resting at the highs. And in this setup, price moved up and hit that takerit level. Now, as promised, here are some real trade examples of the manipulation strategy in action. I personally found that this strategy works best on the NASDAQ futures, especially on lower time frames. In this example, we're going to use the 3minut time frame. So, the first step of the strategy is to identify a liquidity level. Now if you just look at the chart we can see that price comes down and reversed from this area which makes it a liquidity level that we can mark. Once the liquidity level is identified we move to step two which is looking for manipulation. And in this chart you can see price breaking below the liquidity level and then sharply reversing back up. That's exactly what we're looking for. At this point, we can confirm that we have a manipulation of this liquidity. Now, for step three, we look for an inverse fair value gap. On this chart, we can spot this large red candle right here. You can see there's a very clear gap on the body of the candle, which makes this a fair value gap. Now, for this fair value gap to become an inverse fair value gap, we need to wait for price to break and close above it. And once that happens, that's when we officially have an inverse fair value gap. So just to recap everything so far, first we have a liquidity level. Then we see manipulation of that liquidity. And finally, we get an inverse fair value gap. When all three conditions are met, that's where we take a buy position. Our stop-loss is placed slightly below the fair value gap and the takerit is set at two times stop-loss. And as you can see here, price moves up and hits the takerit target. Now, this strategy also works the same in the opposite direction. Let's see an example. Here, we're on the NASDAQ futures 5-minut time frame, and we can see the price pushing up into this level and then reversing from it, which creates a liquidity level at the highs. The manipulation should also happen at the highs. And right here you can see price wicking just above that level and then rejecting back down. So we now have a valid manipulation. Next we look for an inverse fair value gap. And in this case we have this large green candle with a very clear gap on its body which makes it a fair value gap. Now for this to turn into an inverse fair value gap. We now wait for price to break and close below the gap. Once that happens, we have a valid bearish setup. So, here we enter a sell trade with the stop-loss placed slightly above the fair value gap and the takerit set at two times the stop-loss. And as you can see, price moves down and cleanly hits the takerit target. Now, I get that finding this manipulation setup on a live chart does take time because there are multiple very specific conditions that need to line up and manually screening for them can be timeconuming. So, if you want a more efficient way to screen these manipulation setups, there is a tool that can help with that process. It's an indicator called manipulation X which is available on trading view. So, this tool will automatically detect a liquidity level. the manipulation of that level and a fair value gap. And once price breaks above that fair value gap and all of the entry conditions line up, it marks the chart with a green entry symbol like this, showing that this is a valid manipulation setup, which can be a potential buy entry. In this example, you can see how that setup ended up turning into a profitable trade. So, this is an extremely useful tool if you want to systematize the manipulation strategy and remove the guesswork when trading it. Now, let's look at another example. This time on a different market. Here, I'm using it on the Bitcoin chart, and you'll notice that the indicator automatically looks for the strongest liquidity level. Then, it finds one resting at the highs, and it also detected a manipulation and a fair value gap. Then once price breaks below that gap, it prints a red mark on the chart, signaling that this is a valid bearish manipulation setup, which can be a potential sell trade. And as you can see, after the signal appears, price pushes lower and runs into the liquidity at the lows, resulting in a clean profit. Now, if you want to copy the exact settings I used in this video, you can slow this part of the video down. Another thing I really like about this indicator is that it's purely price actionbased, which means it works on any market, whether you're trading crypto, forex, gold, or futures. But remember, this is not an indicator where you can just blindly follow its buy and sell signals. No indicator works like that. You still have to analyze the setup before actually taking the trade. The indicator simply saves you time by automatically screening for potential manipulation setups. Now, I want to be clear about one thing. The manipulation X is not a free indicator. You do have to pay a small fee if you decide to get it. But if you're a trader who wants to save time, automate the manipulation strategy, and get more consistent setups, then I believe the small investment will be worth it. I personally find the tool very powerful and in practice it only takes a couple of winning setups to pay for itself. If you decide to get the tool for yourself, just click the first link in the description and use the code DT20 at checkout for 20% off. Just a heads up, this discount is limited to the first 50 traders. So once all the spots are filled, the discount is gone. Now, to be clear, if you still prefer trading the manipulation strategy manually without the indicator, that's completely fine. You can just follow the exact steps I laid out in the video. But if you're someone who wants to systematize the manipulation strategy and remove the guesswork when trading it, then you can consider getting the tool. If you're interested, click the first link in the description and use the code DT20 to get 20% off. So, that's all for today. Thank you for watching and I'll see you in the next