I thought I’d post this chart of a profitable scalping session this afternoon on the EMini S&P Futures.
We were heading into the FOMC announcement and price action was very slow and choppy, so I was looking for quick scalps and targets. The pink and blue sideways triangles are chart markers for my actual entries (click on the chart to see an enlarged version).
Even though this is a much smaller timeframe – the 600 tick to be precise, my trades are still based on supply and demand zones (indicated by the yellow boxes). I have various price action filters and setups that I base around supply and demand, but that’s a topic for another day.
I don’t like to use the word scalping as it means different things to different people. But when I trade the very short timeframes, I am looking for a low risk/reward and a high win rate. I know that may shock some people, but don’t let anybody tell you that risk/reward (R) is the be all and end all of trading. Targets should be dictated by market conditions and what the market is prepared to give you. Profits are always a balancing act between R and Win rate!