The Simple Breakout Scalping Strategy Behind My $916,118 Week

There is one thing most trading content doesn't tell you. Getting good at trading has almost nothing to do with knowing lots of complicated strategies. It's not about running more indicators. It's not about finding more signal chart setups. It's about doing one simple strategy properly. In this video, I'm going to answer these three things. First, when you should trade. Second, when you confirm before you enter. Third, where you actually take the entry. I've been trading for 14 years straight and I trade every single day and take six figures in profit every week. I can tell you with confidence that this strategy will completely change the way you trade. And at the same time, it is the simplest strategy you will ever learn. The name of this strategy is the box breakout pullback entry. You take the entry where price breaks a demand jone and pulls back to it. Today I'm going to explain this in three steps. Step one, daily candle. Step two, 10 minute candle. And step three, two minute candle. These three time frames and one Ballinger band. That's are the tool we are going to use. We don't have to look at anything else. By the end of this video, the moment you open your chart, you will see exactly where to take the entry. When should you trade? What time zone should you trade in? This is the question I get the most from beginner traders. The answer is simple. You trade when volatility is at its highest. Stocks or futures is the same. When there's no volatility, the chart barely moves. So, there's no spot to enter. So, when is volatility highest? It's when the US market opens, which is 9:30 a.m. Eastern time. If you trade a different market, use the market's opening time. Since I focus on NASDAQ, I will use the US session here. Why is this time so important? Traders from all over the world come in at the same time. That's why starting an hour before the US open volume is closed and being moves are made. Honestly, if you fix your time and stay consistent, you can make money in any market. But for beginners, the days trend and breakout show up most clearly in the US session. So practice taking your entries there. Today we are going to turn the chart on 1 hour before the US open. And we are only going to practice taking entries that show up within 2 hours of the open. If a no spot comes up, we won't trade on this day. The chart setup is simple. One hour before the US open, you open trading view and you pull up the gold daily chart. The rectangle tool is on the top left. You add this tool. Now you are going to draw a box from the daily candles high to each row from the highest price of today's daily candle down to the lowest price. That's step number one. But why do we draw the box here? A top of the box is the highest average entry price of everyone who took a wrong position today. The bottom of the box is the Roy average entry price of everyone who took a short position today. Let me say simply at the top of the box there are people who got trapped wrong at the highest level rebel. At the bottom of the box there are people who got trapped short at the lowest rebel. That's why when price comes back to touch this level, people make a strong reaction at the top of the box. When price comes back up to here, they think to themselves, Ram just break and they close their wrong position. When you close a wrong position, it means you are sending a set order into the market. As a result, cerebrum flows in and price gets pushed down again. The bounce at the bottom of the box works in the same way. At the bottom, there are people who got trapped sure at the Roy. When price comes back down here, they close their short position to break even. Along with that, the new buy volume comes in. So, price goes back up. But what happens when the box gets broken? When the top of the box gets broken upward, it means buyers are willing to pay even higher than that level. That tells you the dominant side is on the buy side. You take wrong entries from here. The other way around, when the bottom of the bus gets broken, it means price points to do the strongest rebel of buy interest. So you take sure entry from here. That's step one. Drawing one box is all there is to it. Once you've used the daily box to map out the high and the low. Now in step two, you check whether that box has actually been broken. Step one is drawing the blueprint. Step two is confirming the breakout because only when the box gets broken do you actually have a chance to trade. For step two, we go to the 10 minute candle. Keep the daily box on the chart and switch the 10 minute. But why the 10 minute? Why not the one hour or the 1 minute? There's an important principle here. A lower time frame is the process of building a higher time frame. What this means is on a time frame that's too short, price can pull above the box for a moment and you can't tell whether there's a real breakout or not. Let's look at this chart. A one minute candle clearly broke the box and closed below it. But on the 10-minute candle, which is 10 of those one minute candles combined, it just had a wig and came back up inside the box. On the one minute, it looked like a clear breakout. But on the 10 minute, it was just a fake signal. So if you judge a breakout on a 1 minute or any time frame, that's too short. You keep getting stopped out on force signals. On the other hand, if you use the 1 hour, you have to wait an entire hour for the close. While you are waiting, price has open already gone where it was going to go. The time is the middle ground. Here is where you will be able to filter out the force signals and still confirm the breakout quickly. Here is the most important rule. If a 10 minute candle close above the box, the breakout is confirmed upward. You only take long entries. If a 10 minute candle close below the box, the breakout is confirmed downward. You only take short entries. A break that's only with the week has no meaning. The candle is comfy at the close. If price pokes up for a moment and comes back inside, that's not a breakout. It's an attempted breakout, not a real breakout. The close has to be outside the box for it to be a real breakout. Really simple, right? When you apply this rule to the actual chart, you can see here at 2250, the 10 minute candle broke the bottom of the daily box and close below it. Rather sum this up. In step one, we draw the box on the daily candle. In step two, we confirm that the 10-minute candle closed the outside box. Now the direction is confirmed but up to this point we haven't looked at a single indicator. We have judged everything with candles alone. Now in step three we are going to set up the entry tool to catch the exact entry point. Now we are going to move the two minute candle to find the entry point. The tool we use here is a Ballinger band but it's not a standard Ballinger band. It's in a slightly modified setting. If you search for Binger band in the trading view indicators, the default is the same for everyone. 202 close. What this means is the upper and lower bands are drawn two standard deviation above and below a 20 period average. Statistically price has about 80% chance of regressing back inside. But when you actually back test this is open drops where below 80%. So we are going to change this. We are going to change the ranks from 20 to four. The standard deviation from two to four and the source from closed to open. I also change the color to red so it's easy to see. This is the band we are going to use to find out our entry point. There's a reason I use these four force values. Please check the description below to learn more about this. This four force Ballinger band has a name. Since price touches wampy, we call it wampy. When a candle touches this band, we will say it's piercing the wampy. In the strategy I'm showing today, we will take our entry where two minute candle pierce this wampy. All right. Now let's find the entry point. The rule is simple. Right now the box was broken to the downside. So we only take short entries when a two minute candle appears the upper won't be. The chart broke the below the box bottom and price pulled back up slightly and a two minute candle pierce the upper wampy. This is where we go short. Really simple, right? Let me clarify one thing here. The one fee doesn't have to line up perfectly with the daily box rebel. If the box breakout is clearly confirmed and price pulls back and pierce the wampy, that is your entry point. It doesn't matter whether the wampy is the below the box or inside the box. The moment a two minute candle pierce the wampy, that is your entry point. Now then you've entered you have to send your star loss and where you will take profit. For the stop loss most people set it at the row or the high of the candle. For a short entry above the previous candle's high for a wrong entry below the previous candle's low. But I don't do it this way. If you sell it this tie, you get stopped out by noise very often. You get stopped out by the wiggle of one or too many candles. So what I actually use is I set my stop loss at the European sessions high or the US sessions high. Why? It's because those are rebels the market participants have paid attention to. If that level breaks the direction might genuinely be wrong. Looking at this chart right now, when I went short at 012, my stop was at the European sessions high. For the take profit, try to take a multiple of your stop distance. If your stop is 10 point, aim for at least 20 points and try to take more than that. Here my stop is 157 points. So I tried to take 157, 304 and 471 points. Let me show you the result of this trade. I went short at 012. I set my stop loss at the European sessions high and price eventually land up to 471 points. That's a one to three riskto-reward ratio. Have you followed alone? It's not difficult. Let's review quickly before moving on to real trade examples. Step one, go to the daily chart and draw a box from today's high to today's row. Step two, go to the 10 minute and check whether a candle close outside the box. Step three, go to the 2 minute and when price pulls back against the breakout direction and pierce the wampy, you take the entry right there. That's the three steps. The guard example I just showed you did not happen because I got lucky. The same pattern repeats every time. Let me show you a few more quickly. In the US session, the box was broken upward. Price pulled back to the wampy and ran back up. Same thing here. The box was broken downward in the US session. Price pulled back to the wampy and ran in that direction. Box broken downward won't be touch and the downtrend continued straight from there. Same spot, same row cut every single time. Now let me show you a different example. On this day, the box was broken upward and the too many candle pierced the ruler wampy. So you took a wrong entry but price came back inside the box. What do you do in this situation? You should take the stam loss. Let me be clear about this. A lot of people look for a 100% win strategy. That kind of strategy does not exist anywhere. Even with the best strategy, you have to take the stammers when it's wrong. That's how you catch the next opportunity. Let me show you how far this strategy can learn when you really lied. I pull up the gold chart and start with drawing the daily box. First step one, the box. 1 hour before the US open, go to the daily candle and draw a box from today's high to today's row. You draw it in advance. Now go to the 10 minute. Keep the box on the chart. Let's watch. At 2130, price poked the bottom of the box and came back inside. Right? This doesn't count as breakout. It just had a wig and came back inside. The close was inside. Now, let's wait for the next candle to close. 220. Watch this. The 10 candle closed below the box. It broke through. This is a real breakout. The direction is confirmed on the short side. Now we go to the two minute to find the exact entry. The box was broken to the downside. So we wait for price to poop and pierce the upper wampy right here. The two candle pierced the upper wampy. And if you look closely, this rabbit also overwrap with the bottom of the daily box. A spot like this is even more powerful. Just one P alone is one reason. But when the box rabbit over wraps with it, you have two reasons to enter. The rebel market participants are watching and the high probability of regressing is inside the band. Right here we go short. I set my stars at the European sessions high of 4798. That's a 27 point stop for take profit. I aim for multiples of my stop. 27 54 81 point. Let me show you how it ended. Price kept trending down all the way to the US close. 27 point stop, 81 point take profit. That's a one to three risk to reward. This strategy doesn't show up every day on one market. I take this trade pretty much daily and on a single market, it usually shows up seven to 10 times out of 20 trading days. Some days price just chops sideways inside the box and finishes. On other days, the breakout happens, but the wampy touch never comes. On Sunday, price lunge in one direction without ever rebing the wampy and other days the spot only shows up right at the US session close then we can't catch it. If you want to catch more opportunities monitor multiple markets at the same time if you only watch one market opportunities are remitt but if you watch multiple markets each one often shows a different trend. So even when there's no opportunity on any of them, a setup will show up on another. The strategy I just showed you today, the daily box, the won't be, and the pullback. These three things give you a setup you can take every day. Because we use one tool to confirm direction and a separate tool to confirm entry, the win is very high. But if you take a high relay trade and close it too early, that's a mistake. To avoid getting stopped out by noise and losing your profit, you have to send your stop loss. So, it only triggers when the sessions major high or low actually breaks. Setting a tie stop at the highs of a few candles leads to a lot of unnecessary stopouts. It turns trading into a stressful experience. In this situation, adjust your position size based on your stop distance on each trade. When you combine other tools with this strategy, it becomes much more powerful. When a hammer candle or reversal candle shows up at a one touch, your entry confidence goes up a rebel. Not just a one Ballinger band, but when price pierce and close on two Ballinger bands at once. That is called our precision entry. This seller works on any market. Domino's always reveals itself. Read it and write it. I will see you in the next video. Thank you for watching.