My Simple 5-Minute Scalping Strategy (That I Use Daily)

The 5-minute chart is the one where most traders burn through their cash, and in this video today, you'll learn why this video can completely change your trading. You'll find out how it's possible for you to use the 5-minute chart to precisely determine the right entries and exits. You'll understand when to enter a trade, how to plan it beforehand, and where you're better off getting out, plus when it's better to just keep your fingers off the mouse.

And of course, how you can integrate this timeframe into your daily life.

What do I mean?

Whether you're part-time or doing this full-time, this is a tool and an instrument that you can always use. But first, anyone trading the 5-minute chart without the big picture is flying blind. And when flying blind, you will always fail. So stay tuned. Yes, take a look. In the 5-minute chart, many people like to use this timeframe to implement their day trading as best as possible. But unfortunately, many people assume they can use counter setups or breakout trend following setups at certain points without checking, is there really liquidity or a lack of it? Without checking, and this is the absolute alpha, if this is really a price range where it's actually interesting for me to trade. Because if you just use the 5-minute chart somewhere in the middle of nowhere, it won't help you much. Let me show you a quick example. For example, if I go into my execution tool here and say, okay, I see a wonderful setup right now, and this setup is interesting to me, what does that really tell us? Look, there's no liquidity at all because the market is currently working through the night session. And additionally, I don't know if there's a price range here where there's really a possibility for the market to turn Why don't I know that? Because I have no idea if this is an area where institutional market participants even have an interest in turning the market, or if it's just somewhere in the middle. That's why I'm going to show you now how I prepare all of this better. There are many tools you can use to locate technical resistance or support areas, and I for one really prefer market profiling. But what does that have to do with the 5-minute chart? That's something very important to know. Look, here I can see immediately, for example, where did the market have its value area yesterday. That means the price range where it felt comfortable. And those levels are always exciting for me because I know the liquidity of the major market participants is in balance here, and they can conduct their business in peace. What does that mean for me? For me, this essentially means that I can look both above and below, especially when the market moves down or across, to see if it will return to balance in those areas accordingly. And what else does this mean for me? I can look for counter trades there, because counter trades are nothing more than trades that show me where the market is making a turn. I can do the same thing at old high-volume price areas, such as a VPOC from a profile like this. I can also look for a counter trade here. So what do I do now? I'll make a note of these levels, and then I'll simply transfer them into my trading window, making sure everything is ready. So I've done that now, and now I know the probability that the market would look for a counter trading setup here, or perhaps over here, in order to get back into balance. Is established. This means I already have a huge advantage because I suddenly know there was a similar example up here. I can look for so-called trend reversal setups here. But what are trend reversal setups? And I'd like to show you that briefly too. Look, for example, down here where liquidity picks up strongly, the market has usually formed an extreme. And whenever the market forms extremes, the probability is simply higher that it will make a turn. And if I can, at that point, then enter something like that, for example, a specific candlestick pattern, into the corresponding location on my chart, and then take a moment to observe and see, okay, the market is actually playing exactly the kind of game or scenario that I needed to play, just as I had anticipated. Suppose it's here, it runs down here, it makes a volume peak down here, then I already know, oh, there was a lot going on there. Something is going to happen now. And if I now also have, for example, a big hammer supported by appropriate liquidity at a location that is exciting for me, then that's perfect for me. And that's how you can look for trend reversal setups. But let's look further at what we're seeing right now, and it's very, very exciting.

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Right now we're seeing something that is of course far from the current price level. If I were to look for trend reversal setups here and here in a balance game, because I fell down here dynamically and now I have a so-called B profile. Anyone who knows my PBD logic has a direct reference relationship here. There was aggressive selling here, and the market is now accepting lower prices. In addition, I can see that liquidity was also played down here because this is the volume profile on this side. Zoom in, and I know right away, okay, the market has shifted its balance phase into another area, and when that happens, it means the probability for trend continuation is now greater. But have I prepared for that accordingly? And do I know how far this trend continuation can last? No. And that's a colossal mistake that many people make because they don't know, A, which setups to use where, and just use one setup everywhere. And here now, for example, in this price range where we are right now, yes, it's about a trend following setup or a breakout setup, but how far will it be able to run if it actually comes to that? And how does that behave in terms of liquidity? That's exactly what we're going to plan together now. The first thing I do to locate exactly these predefined price ranges is I take a look at the big picture here. So in the larger timeframe, where do we stand currently? And I see immediately, this is the profile for this week, and here is where I stand currently. That means I'm below all the balance areas of the last few days. For me, that's an initial indication that the market down here can quickly move in an imbalance. But what can I look at, for example, as a target area? Look here. Here, for example, is a so-called buying tail. There was strong buying here. And these are always areas where you naturally have to be careful whether a reaction occurs there again. That means I'm now transferring this price range from this buying tail into my corresponding chart and setting it up as a so-called target area. But what's missing? At what point is my idea absolutely invalid? And for that, I look up and say, at what point do I assume again that the market will be back in balance and move upwards? Yes, from here. And that's why I'm taking 7,390 for the top and 7,315 for the bottom. So, and now I'm transferring the corresponding price ranges, and I know that this is the price range that, in terms of probability, can be traded through dynamically. And now I just have to wait accordingly for the market to give me an opportunity here to trade through this price range dynamically. And as we already know, here is a so-called B. If we know the rules for the B, we know that this is a wonderful trend following setup. And then we have a really great opportunity. In addition, we can look at whether the liquidity down here remains stable or becomes extreme. Always remember, when things get extreme, a counter movement often follows, and that's the opportunity you can take advantage of. So you have two things: you can clearly predefine where you have so-called balance trading ideas. That would be if the market is here and moves up or down, that I look for counter setups right here. Or else, where do I have so-called fast trading ideas like trend continuation and breakout? I have that in this predefined area. And if you can't do that and don't prepare this so-called context for yourself, you'll use setups at all sorts of points and wonder why they don't work. For example, you'll trade breakout setups constantly here and here and here and here and have miserable hit rates. Or you'll suddenly try counter setups in a price range down here, trading against the trend, but the market has no reason at all to move against the trend there. I can tell you, once you've understood that, it's your game changer for earning money relatively easily in the 5-minute timeframe with the right volume-supported setups. And that's exactly what I wanted to share with you, so have fun with it.