Powerful 5 Min TF Midnight Hunter Scalping Strategy | High Probablity Setups | BTC, GOLD

Hey everyone, welcome back to the channel. Today I will take you through a scalping system and tell you the exact tools and indicators you will need, risk management tools that protects your capital, and finally how to identify high probability setups right from entry to the exit. By the end of this video, you will have a clear structured approach that you can start testing and refining in your own trading. Make sure you watch this video till the end because I'll also share a few key mistakes most scalpers make and how you can avoid them. Not only this, I would also be back testing different instruments based on this strategy and show you the performance of each one of them. So make sure you subscribe the channel and stay tuned for more videos. Let's get started. Open up your tradingview.com and load up either Forex or crypto which you usually trade. In this example, we will be using Bitcoin. And the time frame that we will be choosing is 5 minutes. Once we have done that, let's apply the first indicator. Let's go to the indicator tab and search Midnight Hunter. As you can see on the screen, it's X48 indicator Midnight Hunter. Apply it on the screen. Once the indicator is applied, we will be optimizing its settings. So, let's click on the settings or the gear icon. I have already optimized it, but I will take you through how exactly you can do that. On the inputs tab, Midnight Hunter band settings, we will keep them as it is. And rest everything else we will uncheck. Only the thing we will need is a three candle engulfing signal. So, as you can see, nothing is enabled. And that's all that you need to do on the inputs tab. Let's move on to the style tab. Over here, we only need the first five items to be checked and rest everything else to be unchecked. Once you have done that, click on okay to save the settings. And that's it. Basically, what this indicator does is there are two channels running around the price. One is the upper channel, the lower channel, and the median or the mean of the channel. Whenever the price goes up, the tendency is it will revert back to its mean or it will fall from there. And once the price goes below the lower band, it will eventually come back up. But that is just the gist, not the entire trading strategy. We will get on to that. I want you to apply the next indicator, which is RSI. And you can make a slight change in the styles for RSI indicator. Remove or disable the moving average. So, as you can see, the second one, we have removed it. Click on okay, and that's all that you need. And finally, we want the Fibonacci retracement tool with standard deviation extensions. So, let's go and select Fibonacci retracement. I'll just plot one over here so you can see how exactly it looks. And that is how it should be. I've already made a video on how to enable the Fibonacci retracement to show the standard deviation extensions. I have posted a link at the top of the video. You can check that at your own convenience. Long setup. So, in order for us to look for buy entries, we must meet four conditions. And here are those. First condition, the price must be oversold. And specifically, it should fall below the 30 level mark. So, over here, as you can see on the screen, the RSI at this point was 24.34. Second condition is we need to see an RSI divergence, meaning the price is falling below, but the RSI isn't. So, at this situation, as you see, the RSI over here is 26. 606. Uh it has definitely fallen below the previous price point, but the RSI has not. So, a clear case of RSI divergence. That's the second condition. The third condition is we must have a three engulfing bullish candle form. As you can see over here. That's the third condition. And fourth, the price, when this three engulfing candle forms, must be either below the lower channel or should be around this. It should not be around the mean or at the upper channel. So, that's the fourth condition. And once all these four conditions are met, it is a perfect buy entry setup. So, let's have a look at how we will trade and plan our trade in a buy setup. So, we have a situation over here or an example over here. The price falls below the 30 level mark, so it's oversold at this stage. Now, the price is oversold, so our first condition met. Now we're looking for divergence and at this stage as you can see the price falls further below but the RSI doesn't. However, in this situation we do not get a three engulfing candle. So we keep on going ahead and over here as well we have a case of RSI divergence. The RSI is 24.91 and over here it was 22.17. So the RSI is still higher but the price is lower and we have our third condition. We have a three engulfing candle formed, a bullish one and fourth condition it is near or below the lower channel. So all the conditions are met. So at this stage we will plot we will take the Fibonacci retracement and plot it from the bottom of the price swing to the close of the three engulfing candle. And yeah. So now once you have entered, this is your stop loss. So the lowest point. One important thing, in order for the stop loss to be executed, the price must close below this level. If it just wicks, that's allowed but in order for you to book a loss, the price must close below this level. Continuing. So once we move and once the price hits standard deviation one you would move your stop loss to break even. So now even if it price comes back and hits your entry, you will just close the trade break even no losses. But at standard deviation one no profits should be booked. Next, once the price hits standard deviation two which is at this stage, let me just move the chart a little bit over here. Over here on standard deviation two, you would further move your stop loss above two standard deviation one. And you would take off or book profits for 50% of your position. So, that happens at standard deviation two. When the price goes and hits standard deviation 2.5, we will not move our stop loss any further. It will now remain for the entirety of the duration at standard deviation one, but we will take off another 25% of position and we will book that. Further, once it hits standard deviation four, that's the stage the entire trade closes and the remaining 25% is booked. And that's how a buy setup is formed and executed. Short setup. We will now look at short setup and it's exactly opposite, vice versa of what we are looking in a long setup. So, the rules remains the same. In this situation, we're looking at the opposite, so the price must be overbought. Specifically in this situation, the price must go above the 70 level mark. So, that's the first condition. Second condition is we should be looking for a divergence. In this situation, the divergence, uh the price would keep on going up, but the RSI would not. Over here, as you can see, we have a situation of a divergence, RSI divergence. The next condition is once the divergence is identified, we must have a three engulfing candle formed. A bearish one. So, we have this one. And fourth, the price must be above the upper channel or near about the upper channel. So, those are the fourth conditions. And similarly, once we have identified what we will do is we will take our fib tool, we will place at the top of the price swing and up to the close of the three engulfing candle. So, in this situation over here. And similarly, what we see is the price, once we enter over here, the price goes back up, wicks out. So, in this situation, if it's just a wick, we need to make sure it closes above this level for us to close the trade in loss, but it just wicks out, comes back down, and then goes on to hit standard deviation one. At this stage, we move our stop loss to break even, so at entry, we don't book any profits. The price moves to standard deviation two. At this At this stage, we would move our stop loss to standard deviation one, and we will close 50% at once the price hits standard deviation two. Further, when price hits standard deviation 2.5, we will close another 25% of our position. Stop loss remains the same at standard deviation one, and finally, once the price hits standard deviation four, we close the entire position. So, this is how you will manage a short trade. And that's it about the strategy and how you can take long entry and short entry with this trading setup. A couple of important pointers that I would like to call out is one, follow the rules. Uh If there is no setup forming, do not force a setup. If it's If it isn't there, it isn't there. If the price does not move in your favorable direction and ends up being a loss, book it. That way, you will make sure that you're protecting your own capital and not just hoping that uh things would move in your direction. And finally, I would also mention something about the three engulfing candles printing. Sometimes I've seen and I've observed that these candles do not print correctly or I just need to make sure that they are. So, for example, this one. It's a live candle. Um it has only overlapped with the previous two bearish candles and not the third one. And still, it has a three engulfing print below it. So, when that happens, just make sure that you do not consider that. It needs to be a proper three candle engulfing like this one. 1 2 3. It engulfs or at least touches all three candles at some point. So, that's all there is to it. And I hope you like this video. Uh I will be doing backtesting for weeks or for at least a month using this and see how that performance comes out to be and share that in a future video. Until then, have a good one.